Brighthouse Funds Trust II N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:811-3618

BRIGHTHOUSE FUNDS TRUST II

(Exact name of registrant as specified in charter)

One Financial Center

Boston, MA 02111

(Address of principal executive offices)(Zip code)

(Name and Address of Agent for Service)	Copy to:
Michael Lawlor, Esq. -------------------------- c/o Brighthouse Investment Advisers, LLC One Financial Center Boston, MA 02111	Brian D. McCabe, Esq. ------------------------------- Ropes & Gray LLP Prudential Tower 800 Boylston Street Boston MA, 02199

Registrant’s telephone number, including area code:980-949-5130

Date of fiscal year end: December 31

Date of reporting period: December 31, 2018

1

Item 1:  Report to Shareholders.

The following is a copy of the report transmitted to stockholders pursuant to Rule30e-1 under the Investment Company Act of 1940 (the “Act”):

2

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Managed by Baillie Gifford Overseas Limited

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Baillie Gifford International Stock Portfolio returned-17.01%,-17.19%, and-17.09%, respectively. The Portfolio’s benchmark, the MSCI All Country World (“ACWI”)ex-U.S. Index¹, returned-14.20%.

MARKET ENVIRONMENT / CONDITIONS

2018 proved to be a turbulent year and one of the worst years for equity performance in a decade. Market weakness was widespread with most regions posting double digit declines. There was similarly indiscriminate write downs across all sectors and industries. Against this backdrop, the MSCI ACWIex-U.S. Index declined 14.20%. While it is often difficult to explain short-term swings in equity prices, the main reasons cited for the weakness over the year have tended to focus on factors such as an economic slowdown or threats to future growth from rising interest rates and trade wars, as opposed to specific issues at the corporate level.

Market confidence was fragile, with the first sharp fall in global stock prices in February. This coincided with the beginning in earnest of a trade war between the U.S. and China, with President Trump’s administration aiming an opening salvo at $60 billion worth of Chinese imports. The dispute moved to focus on the theft of intellectual property and the forced transfer of expertise from U.S. companies. Nervousness around what this might mean for global trade spilled into other markets, with sharpmid-year declines in emerging markets. European markets have also faced their share of woes with continued wrangling around Brexit (U.K. amendment to leave the European Union), weakness in the Italian economy and a disheartened electorate in France combining to weaken sentiment further.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio underperformed its benchmark during 2018. As we would expect given our style of investing, performance was driven by the results of our stock picking approach as opposed to macro-economic considerations or asset allocation decisions. A number of holdings within the Portfolio made a significant contribution to relative performance, either negatively or positively.

ASOS (U.K.), the fast fashion retailer, was the largest detractor from relative performance. A profit warning in December saw a sharp decline in the ASOS share price. Issues at ASOS have centred on the company’s “Black Friday” strategy, where heavy discounting from competitors has proved a challenge whilst the company failed to realise the impact of the event in overseas markets such as Australia. Additionally, a strategic move to try to sell a narrower range of its own products proved unsuccessful, at a time when the company has been investing heavily in two new distribution centres in Atlanta and Berlin to drive growth. The company has revised down its guidance and margins are expected to be substantially impacted.

Naspers (South Africa) the media holdings company, invests in more than 100 companies but its largest holding is Tencent (in which it owns a 30% stake). Tencent (China) is an investment holding conglomerate, well known for online gaming and its WeChat social ecosystem. Chinese government gaming regulation and scrutiny of gaming addiction caused significant share price falls in Tencent over the year (which Naspers tends to move in line with). However, operationally, both companies have been performing well. Having had such negative pronouncements from the gaming regulator in the past, which passed without implication, our view currently is that Tencent is well placed to navigate the impact of any regulatory tightening. At year end, we continued to believe the long-term investment case remained strong for both companies. We took advantage of the short-term weakness in Tencent to buy a new holding for the Portfolio, which was funded by a partial reduction in Naspers.

On a more positive note, Edenred (France), the employee benefits vouchers business, has been executing on a transformation strategy focusing onde-risking its operational profile, which is starting to reap rewards and led to a sharp rise in the company’s share price. Gradual improvements in Brazil, which represents more than one third of revenues, are expected to sustain the recently accelerated earnings growth path. Ongoing developments in the digital payment world, where Edenred has an established foothold, open the doors to meaningful growth opportunities.

Constellation Software (Canada), a software company, was also amongst the strongest contributors. The company has reported strong earnings and growth results over the past twelve-months. Most recently, the company announced organic revenue growth was 5%year-on-year with the contribution of recurring revenue increasing to close to 70%. The company grows primarily through acquisitions, buying small software businesses that have a strong position in niche markets. Capital allocation discipline is notable with the founder Mark Leonard at the helm.

A number of new holdings were added to the Portfolio over the course of 2018. These included Spotify (Sweden), the online music streaming platform; HDFC (India), the largest mortgage lender in its domestic market; Tencent Music (China), the dominant music platform in China; and Danone (France), the world’s largest producer of organic foods. As discussed above, the Portfolio also took a holding in Tencent (China), the investment holding company. These new holdings were funded by sales made for fundamental stock-specific reasons such as that of Bureau Veritas (France), a testing and inspection company; Rakuten (Japan), thee-commerce company; and Baidu (China), an internet search provider.

The regional, sector, and industry positioning of the Portfolio are the product of such stock decisions made by the Portfolio managers rather than expressed views on international markets. At year end, the Portfolio remained relatively balanced at a regional level in comparison to the benchmark index, with an underweight to Japan being the most marked position at the close of the year in country terms.

BHFTII-1

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Managed by Baillie Gifford Overseas Limited

Portfolio Manager Commentary*—(Continued)

At the sector level, deviations from the benchmark index remained more marked at year end, not changing significantly over the year. The Portfolio remained underweight in Health Care, Financials, Telecommunication Services, and Energy. At year end, the most significant overweights were the Industrials, Information Technology, and Consumer Discretionary sectors.

In industry terms, the most significant overweights for the Portfolio relative to the benchmark index at year end were in capital markets, internet & direct marketing retail, and machinery. We retained a significant underweight in oil, gas and consumable fuels, banks, and pharmaceuticals.

Jonathan Bates

Angus Franklin

Portfolio Managers

Baillie Gifford Overseas Limited

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

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Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

A $10,000 INVESTMENT COMPARED TO THE MSCI ALL COUNTRY WORLD EX-U.S. INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Baillie Gifford International Stock Portfolio
Class A		-17.01		2.34		4.99
Class B		-17.19		2.10		4.72
Class E		-17.09		2.20		4.84
MSCI All Country Worldex-U.S. Index		-14.20		0.68		6.57

¹ The MSCI All Country World ex-U.S. Index is an unmanaged free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the U.S. The Index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd.		3.4
SAP SE		2.7
MercadoLibre, Inc.		2.7
AIA Group, Ltd.		2.5
Rio Tinto plc		2.4
Deutsche Boerse AG		2.4
Samsung Electronics Co., Ltd.		2.2
Nestle S.A.		2.1
Fairfax Financial Holdings, Ltd.		1.9
Edenred		1.9

Top Countries

	% of Net Assets
United Kingdom		13.9
Japan		11.5
Germany		8.7
Switzerland		5.5
Ireland		5.0
France		4.9
Canada		4.3
Taiwan		4.2
Hong Kong		4.1
Sweden		4.1

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Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Baillie Gifford International Stock Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.71	%	$	1,000.00	$	857.60	$	3.32
	Hypothetical*		0.71	%	$	1,000.00	$	1,021.63	$	3.62
Class B (a)	Actual		0.96	%	$	1,000.00	$	857.00	$	4.49
	Hypothetical*		0.96	%	$	1,000.00	$	1,020.37	$	4.89
Class E (a)	Actual		0.86	%	$	1,000.00	$	857.70	$	4.03
	Hypothetical*		0.86	%	$	1,000.00	$	1,020.87	$	4.38

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

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Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—98.2% of Net Assets

Security Description	Shares		Value
Argentina—2.7%
MercadoLibre, Inc. (a)		155,633	$	45,577,124
Australia—1.0%
Cochlear, Ltd.		140,697		17,096,483
Brazil—1.6%
Itau Unibanco Holding S.A. (ADR)		1,853,662		16,942,471
Kroton Educacional S.A.		4,164,500		9,503,629
				26,446,100
Canada—4.3%
Constellation Software, Inc.		44,429		28,438,856
Fairfax Financial Holdings, Ltd.		74,426		32,763,359
Ritchie Bros. Auctioneers, Inc. (b)		370,516		12,123,283
				73,325,498
China—4.0%
Alibaba Group Holding, Ltd. (ADR) (a) (b)		227,071		31,124,622
Tencent Holdings, Ltd.		736,800		29,206,035
Tencent Music Entertainment Group (ADR) (a) (b)		558,923		7,388,962
				67,719,619
Denmark—2.5%
DSV A/S		379,662		25,034,829
Novozymes A/S - B Shares		372,104		16,632,513
				41,667,342
Finland—2.4%
Kone Oyj - Class B		558,025		26,582,810
Sampo Oyj - A Shares		307,017		13,496,822
				40,079,632
France—4.9%
Danone S.A.		240,476		16,948,612
Edenred		859,539		31,508,269
EssilorLuxottica S.A.		121,889		15,391,189
Legrand S.A.		331,017		18,630,821
				82,478,891
Germany—8.7%
Brenntag AG		229,696		9,913,489
Continental AG		69,354		9,590,153
Deutsche Boerse AG		333,728		40,133,211
MTU Aero Engines AG		97,682		17,742,118
SAP SE		459,355		45,756,204
Scout24 AG		556,173		25,597,936
				148,733,111
Hong Kong—4.1%
AIA Group, Ltd.		5,262,200		43,288,216
Hong Kong Exchanges and Clearing, Ltd.		948,000		27,204,687
				70,492,903
India—1.8%
Housing Development Finance Corp., Ltd.		1,109,992		31,250,657
Ireland—5.0%
CRH plc		779,090		20,445,999
James Hardie Industries plc		838,564		8,930,013
Kingspan Group plc		606,914		25,994,443
Ryanair Holdings plc (ADR) (a)		417,048		29,752,204
				85,122,659
Japan—11.5%
Denso Corp.		408,500		18,129,261
FANUC Corp.		83,500		12,553,196
Japan Exchange Group, Inc.		1,894,800		30,430,060
Nidec Corp.		197,200		22,600,054
Shimano, Inc.		174,100		24,750,766
SMC Corp.		80,300		23,985,629
Sony Corp.		408,000		19,648,013
Sumitomo Mitsui Trust Holdings, Inc.		585,300		21,304,281
Toyota Tsusho Corp.		750,000		22,058,095
				195,459,355
Netherlands—1.5%
Heineken Holding NV		304,540		25,631,201
Panama—1.1%
Copa Holdings S.A. - Class A		242,804		19,111,103
Peru—1.3%
Credicorp, Ltd.		102,148		22,643,147
Russia—0.6%
Magnit PJSC (GDR)		854,138		10,873,546
Singapore—1.6%
United Overseas Bank, Ltd.		1,513,864		27,134,190
South Africa—2.4%
Discovery, Ltd.		1,702,346		18,779,093
Naspers, Ltd. - N Shares		114,443		22,732,658
				41,511,751
South Korea—3.0%
NAVER Corp.		130,234		14,190,006
Samsung Electronics Co., Ltd.		1,074,146		37,166,173
				51,356,179
Spain—2.9%
Bankinter S.A.		2,097,742		16,765,775
Grifols S.A.		469,966		12,275,643
Industria de Diseno Textil S.A.		790,927		20,163,153
				49,204,571
Sweden—4.1%
Atlas Copco AB - B Shares		1,173,440		25,727,757
Epiroc AB - Class B (a)		2,067,087		18,503,294

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Sweden—(Continued)
Svenska Handelsbanken AB - A Shares (b)		2,295,488	$	25,428,716
				69,659,767
Switzerland—5.5%
Cie Financiere Richemont S.A.		225,742		14,507,859
Credit Suisse Group AG (a)		1,477,754		16,285,060
Nestle S.A.		432,234		35,140,990
Panalpina Welttransport Holding AG (b)		76,588		10,192,032
SGS S.A.		7,859		17,706,357
				93,832,298
Taiwan—4.2%
Hon Hai Precision Industry Co., Ltd.		5,382,067		12,422,462
Taiwan Semiconductor Manufacturing Co., Ltd.		8,020,000		58,219,406
				70,641,868
United Kingdom—13.9%
ASOS plc (a) (b)		299,662		8,648,148
boohoo Group plc (a)		6,934,394		14,205,122
Burberry Group plc		529,921		11,658,854
Experian plc		1,111,686		27,019,224
Hargreaves Lansdown plc (b)		1,126,766		26,548,328
Howden Joinery Group plc		2,000,642		11,064,734
Just Eat plc (a) (b)		3,003,763		22,468,152
Prudential plc		1,485,688		26,544,883
Rio Tinto plc		863,199		41,158,081
Rolls-Royce Holdings plc (a)		773,191		8,136,700
St. James’s Place plc		1,105,135		13,241,127
Unilever NV		479,004		26,026,673
				236,720,026
United States—1.6%
Pricesmart, Inc. (b)		130,472		7,710,895
Spotify Technology S.A. (a)		177,146		20,106,071
				27,816,966
Total Common Stocks (Cost $1,505,827,225)				1,671,585,987
Preferred Stock—0.3%
Spain—0.3%
Grifols S.A. - Class B (Cost $6,362,013)		261,847		4,827,692
Short-Term Investment—1.3%
Security Description	Principal Amount*		Value
Repurchase Agreement—1.3%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $22,700,466; collateralized by U.S. Treasury Notes with rates ranging from 2.125% - 2.500%, maturity dates ranging from 03/31/24 - 05/15/24, and an aggregate market value of $23,153,469.		22,698,953		22,698,953
Total Short-Term Investments (Cost $22,698,953)				22,698,953
Securities Lending Reinvestments (c)—6.4%
Certificates of Deposit—0.1%
Banco Del Estado De Chile New York 2.820%, 1M LIBOR + 0.350%, 05/20/19 (d)		1,000,000		999,979
Natixis New York 2.810%, 1M LIBOR + 0.370%, 02/14/19 (d)		1,000,000		1,000,187
				2,000,166
Commercial Paper—0.2%
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (d)		1,000,000		1,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (d)		1,500,000		1,500,139
				2,500,139
Repurchase Agreements—5.8%
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $10,662,087; collateralized by U.S. Treasury Obligations with rates ranging from 0.375%- 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $10,873,832.		10,660,612		10,660,612
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $3,500,484; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $3,570,000.		3,500,000		3,500,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $10,001,528; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $10,200,000.		10,000,000		10,000,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $8,685,588; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $8,857,725.		8,684,044		8,684,044

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $5,500,782; collateralized by various Common Stock with an aggregate market value of $6,122,667.		5,500,000	$	5,500,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,500,498; collateralized by various Common Stock with an aggregate market value of $3,896,243.		3,500,000		3,500,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $14,001,991; collateralized by various Common Stock with an aggregate market value of $15,584,972.		14,000,000		14,000,000
Nomura Securities International, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $20,003,278; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 6.500%, maturity dates ranging from 02/15/19 - 08/15/48, and an aggregate market value of $20,400,000.		20,000,000		20,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $3,800,534; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $4,162,808.		3,800,000		3,800,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $10,001,406; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $10,954,759.		10,000,000		10,000,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $7,501,054; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $8,216,069.		7,500,000		7,500,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $1,000,498; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,095,476.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $500,249; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $547,738.		500,000		500,000
				98,644,656
Time Deposit—0.3%
Royal Bank of Canada 2.420%, 01/02/19		5,000,000		5,000,000
Total Securities Lending Reinvestments (Cost $108,144,656)				108,144,961
Total Investments—106.2% (Cost $1,643,032,847)				1,807,257,593
Other assets and liabilities (net)—(6.2)%				(105,663,916	)
Net Assets—100.0%			$	1,701,593,677

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $106,751,656 and the collateral received consisted of cash in the amount of $108,144,656 andnon-cash collateral with a value of $3,088,187. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this non-cash collateral is excluded from the Statement of Assets and Liabilities.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(GDR)—	Global Depositary Receipt
(LIBOR)—	London Interbank Offered Rate

Ten Largest Industries as of December 31, 2018 (Unaudited)	% of Net Assets
Capital Markets		9.0
Insurance		7.9
Banks		7.6
Internet & Direct Marketing Retail		7.2
Machinery		6.3
Software		4.4
Interactive Media & Services		4.1
Semiconductors & Semiconductor Equipment		3.4
Food Products		3.1
Airlines		2.9

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Argentina	$	45,577,124	$	—		$	—	$	45,577,124
Australia		—		17,096,483			—		17,096,483
Brazil		16,942,471		9,503,629			—		26,446,100
Canada		73,325,498		—			—		73,325,498
China		38,513,584		29,206,035			—		67,719,619
Denmark		—		41,667,342			—		41,667,342
Finland		—		40,079,632			—		40,079,632
France		—		82,478,891			—		82,478,891
Germany		—		148,733,111			—		148,733,111
Hong Kong		—		70,492,903			—		70,492,903
India		—		31,250,657			—		31,250,657
Ireland		29,752,204		55,370,455			—		85,122,659
Japan		—		195,459,355			—		195,459,355
Netherlands		—		25,631,201			—		25,631,201
Panama		19,111,103		—			—		19,111,103
Peru		22,643,147		—			—		22,643,147
Russia		—		10,873,546			—		10,873,546
Singapore		—		27,134,190			—		27,134,190
South Africa		—		41,511,751			—		41,511,751
South Korea		—		51,356,179			—		51,356,179
Spain		—		49,204,571			—		49,204,571
Sweden		—		69,659,767			—		69,659,767
Switzerland		—		93,832,298			—		93,832,298
Taiwan		—		70,641,868			—		70,641,868
United Kingdom		—		236,720,026			—		236,720,026
United States		27,816,966		—			—		27,816,966
Total Common Stocks		273,682,097		1,397,903,890			—		1,671,585,987
Total Preferred Stock*		—		4,827,692			—		4,827,692
Total Short-Term Investment*		—		22,698,953			—		22,698,953
Total Securities Lending Reinvestments*		—		108,144,961			—		108,144,961
Total Investments	$	273,682,097	$	1,533,575,496		$	—	$	1,807,257,593
Collateral for Securities Loaned (Liability)	$	—	$	(108,144,656	)	$	—	$	(108,144,656	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,807,257,593
Cash denominated in foreign currencies (c)		716,305
Receivable for:
Investments sold		39,422
Fund shares sold		588,759
Dividends and interest		3,035,936
Prepaid expenses		5,250
Total Assets		1,811,643,265
Liabilities
Collateral for securities loaned		108,144,656
Payables for:
Fund shares redeemed		128,903
Accrued Expenses:
Management fees		990,233
Distribution and service fees		61,882
Deferred trustees’ fees	��	138,370
Other expenses		585,544
Total Liabilities		110,049,588
Net Assets	$	1,701,593,677
Net Assets Consist of:
Paid in surplus	$	1,406,018,918
Distributable earnings (Accumulated losses)		295,574,759
Net Assets	$	1,701,593,677
Net Assets
Class A	$	1,407,777,427
Class B		277,596,456
Class E		16,219,794
Capital Shares Outstanding*
Class A		127,690,302
Class B		25,589,404
Class E		1,486,833
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	11.02
Class B		10.85
Class E		10.91

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $1,643,032,847.
(b)	Includes securities loaned at value of $106,751,656.
(c)	Identified cost of cash denominated in foreign currencies was $711,314.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	37,062,613
Interest		148,267
Securities lending income		317,442
Total investment income		37,528,322
Expenses
Management fees		14,766,331
Administration fees		67,179
Custodian and accounting fees		525,985
Distribution and service fees—Class B		824,654
Distribution and service fees—Class E		28,920
Audit and tax services		55,145
Legal		45,317
Trustees’ fees and expenses		33,732
Shareholder reporting		108,621
Insurance		12,210
Miscellaneous		133,886
Total expenses		16,601,980
Less management fee waiver		(2,298,266	)
Net expenses		14,303,714
Net Investment Income		23,224,608
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		111,160,399
Foreign currency transactions		(761,365	)
Net realized gain		110,399,034
Net change in unrealized depreciation on:
Investments		(473,003,808	)
Foreign currency transactions		(122,236	)
Net change in unrealized depreciation		(473,126,044	)
Net realized and unrealized loss		(362,727,010	)
Net Decrease in Net Assets From Operations	$	(339,502,402	)

(a) Net of foreign withholding taxes of $3,918,483.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	23,224,608		$	21,464,894
Net realized gain		110,399,034			109,990,740
Net change in unrealized appreciation (depreciation)		(473,126,044	)		407,661,229
Increase (decrease) in net assets from operations		(339,502,402	)		539,116,863
From Distributions to Shareholders (a)
Class A		(18,443,225	)		(17,587,214	)
Class B		(3,023,120	)		(3,469,294	)
Class E		(196,972	)		(232,526	)
Total distributions		(21,663,317	)		(21,289,034	)
Increase (decrease) in net assets from capital share transactions		214,440,920			(321,838,239	)
Total increase (decrease) in net assets		(146,724,799	)		195,989,590
Net Assets
Beginning of period		1,848,318,476			1,652,328,886
End of period	$	1,701,593,677		$	1,848,318,476	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		23,146,832		$	301,855,134			431,646		$	5,060,048
Reinvestments		1,382,551			18,443,225			1,487,920			17,587,214
Redemptions		(6,247,029	)		(85,040,301	)		(23,217,031	)		(280,691,731	)
Net increase (decrease)		18,282,354		$	235,258,058			(21,297,465	)	$	(258,044,469	)
Class B
Sales		2,251,320		$	28,354,279			967,341		$	11,333,315
Reinvestments		230,070			3,023,120			297,794			3,469,294
Redemptions		(3,877,975	)		(50,053,323	)		(6,445,066	)		(75,960,334	)
Net decrease		(1,396,585	)	$	(18,675,924	)		(5,179,931	)	$	(61,157,725	)
Class E
Sales		155,694		$	1,929,102			85,936		$	979,935
Reinvestments		14,911			196,972			19,874			232,526
Redemptions		(328,351	)		(4,267,288	)		(324,586	)		(3,848,506	)
Net decrease		(157,746	)	$	(2,141,214	)		(218,776	)	$	(2,636,045	)
Increase (decrease) derived from capital shares transactions				$	214,440,920					$	(321,838,239	)

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $21,306,719 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	13.43		$	10.06		$	9.71		$	10.07		$	10.54
Income (Loss) from Investment Operations
Net investment income (a)		0.16			0.15			0.15	(b)		0.16			0.16
Net realized and unrealized gain (loss)		(2.42	)		3.37			0.36			(0.34	)		(0.48	)
Total income (loss) from investment operations		(2.26	)		3.52			0.51			(0.18	)		(0.32	)
Less Distributions
Distributions from net investment income		(0.15	)		(0.15	)		(0.16	)		(0.18	)		(0.15	)
Total distributions		(0.15	)		(0.15	)		(0.16	)		(0.18	)		(0.15	)
Net Asset Value, End of Period	$	11.02		$	13.43		$	10.06		$	9.71		$	10.07
Total Return (%) (c)		(17.01	)		35.15			5.38			(1.97	)		(3.10	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.85			0.85			0.85			0.87			0.87
Net ratio of expenses to average net assets (%) (d)		0.72			0.73			0.73			0.74			0.75
Ratio of net investment income to average net assets (%)		1.28			1.24			1.49	(b)		1.56			1.58
Portfolio turnover rate (%)		23			8			11			12			8
Net assets, end of period (in millions)	$	1,407.8		$	1,469.7		$	1,315.2		$	1,361.8		$	1,490.0
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	13.22		$	9.90		$	9.56		$	9.91		$	10.38
Income (Loss) from Investment Operations
Net investment income (a)		0.14			0.12			0.12	(b)		0.13			0.14
Net realized and unrealized gain (loss)		(2.39	)		3.32			0.35			(0.33	)		(0.48	)
Total income (loss) from investment operations		(2.25	)		3.44			0.47			(0.20	)		(0.34	)
Less Distributions
Distributions from net investment income		(0.12	)		(0.12	)		(0.13	)		(0.15	)		(0.13	)
Total distributions		(0.12	)		(0.12	)		(0.13	)		(0.15	)		(0.13	)
Net Asset Value, End of Period	$	10.85		$	13.22		$	9.90		$	9.56		$	9.91
Total Return (%) (c)		(17.19	)		34.89			5.05			(2.17	)		(3.34	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.10			1.10			1.10			1.12			1.12
Net ratio of expenses to average net assets (%) (d)		0.97			0.98			0.98			0.99			1.00
Ratio of net investment income to average net assets (%)		1.09			0.99			1.25	(b)		1.31			1.32
Portfolio turnover rate (%)		23			8			11			12			8
Net assets, end of period (in millions)	$	277.6		$	356.7		$	318.6		$	336.0		$	387.3

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	13.29		$	9.96		$	9.61		$	9.97		$	10.43
Income (Loss) from Investment Operations
Net investment income (a)		0.15			0.13			0.13	(b)		0.14			0.15
Net realized and unrealized gain (loss)		(2.40	)		3.33			0.36			(0.34	)		(0.48	)
Total income (loss) from investment operations		(2.25	)		3.46			0.49			(0.20	)		(0.33	)
Less Distributions
Distributions from net investment income		(0.13	)		(0.13	)		(0.14	)		(0.16	)		(0.13	)
Total distributions		(0.13	)		(0.13	)		(0.14	)		(0.16	)		(0.13	)
Net Asset Value, End of Period	$	10.91		$	13.29		$	9.96		$	9.61		$	9.97
Total Return (%) (c)		(17.09	)		34.92			5.24			(2.15	)		(3.19	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.00			1.00			1.00			1.02			1.02
Net ratio of expenses to average net assets (%) (d)		0.87			0.88			0.88			0.89			0.90
Ratio of net investment income to average net assets (%)		1.19			1.08			1.34	(b)		1.42			1.43
Portfolio turnover rate (%)		23			8			11			12			8
Net assets, end of period (in millions)	$	16.2		$	21.9		$	18.6		$	19.8		$	22.8

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.05% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Baillie Gifford International Stock Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Foreign currency forward contracts are valued through an independent pricing service by interpolating between forward and spot currency rates in the London foreign exchange markets as of a designated hour on a valuation day. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

Options, including options on swaps (“swaptions”), currencies, and futures contracts that are traded OTC are generally valued on the basis of interdealer bid and ask prices or prices provided by pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

BHFTII-14

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus.Book-tax differences are primarily due to adjustments to prior period accumulated balances. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $22,698,953. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $98,644,656. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

BHFTII-15

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk:The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	637,450,728	$	0	$	430,306,989

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$14,766,331		0.860	%	Of the first $500 million
		0.800	%	Of the next $500 million
		0.750	%	On amounts in excess of $1 billion

BHFTII-16

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Baillie Gifford Overseas Limited (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers- Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum reduction	Average Daily Net Assets
0.080%	On amounts over $156.25 million and under $400 million
0.180%	Of the next $100 million
0.120%	Of the next to $400 million
0.150%	On amounts in excess of $900 million

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,645,434,788
Gross unrealized appreciation		269,300,032
Gross unrealized depreciation		(107,477,227	)
Net unrealized appreciation (depreciation)	$	161,822,805

BHFTII-17

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$21,663,317	$	21,289,034	$	—	$	—	$	21,663,317	$	21,289,034

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$23,928,391	$	109,988,369	$	161,805,946	$	—	$	295,722,706

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Baillie Gifford International Stock Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Baillie Gifford International Stock Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Baillie Gifford International Stock Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-21

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-22

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-23

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-24

Brighthouse Funds Trust II

Baillie Gifford International Stock Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Baillie Gifford International Stock Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Baillie Gifford Overseas Limited regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2018, but underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the MSCI All Country World Indexex-U.S., for theone-, three-, and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group andSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-25

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Managed by BlackRock Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the BlackRock Bond Income Portfolio returned-0.36%,-0.62%, and-0.52%, respectively. The Portfolio’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index¹, returned 0.01%.

MARKET ENVIRONMENT / CONDITIONS

Coming into 2018, synchronized global growth was a prevalent theme, with the U.S. taking the lead from Europe and China in driving economic expansion. Unprecedented U.S. fiscal stimulus and plans for more government spending were turning past headwinds to U.S. growth into tailwinds. But as 2018 began, market conditions were heavily impacted bygeo-political uncertainty. These tailwinds initially pushed Treasury yields higher in the first quarter before rallying in the second quarter as bouts of volatility hit the market — first in equities, and then in investment grade (“IG”) credit and emerging markets, ultimately causing these sectors to come under pressure. The moves were largely driven by trade protectionism in the U.S., as well as more idiosyncratic uncertainty in certain countries including Italy and Turkey.

Reversing trend in the third quarter of 2018, U.S. Treasury yields notched highs of around 3.10% as evolving trade discussions, hawkish speeches from Federal Open Market Committee (the “FOMC”) members, and continued levels of elevated supply pushed rates higher. Above-trend U.S. growth continued throughout 2018, with the unemployment rate reaching its lowest levels since 1969. The fourth quarter was marked by a continuedsell-off in rates to seven-year highs early on, but later retraced as tightening financial conditions and a shift in tone from the FOMC saw global rates rallying to end the year and as risk assets came under pressure. After hiking rates for the fourth time in 2018 Federal Reserve (the “Fed”) Chairman Jerome Powell commented, “There’s significant uncertainty about both the path and the ultimate destination of any further rate increases.”

Throughout the year, The European Central Bank (the “ECB”) left interest rates unchanged but signaled the end of its quantitative easing program. In the U.K., Brexit (U.K. amendment to leave the European Union) negotiations dominated headlines, with Prime Minister Theresa May delaying the Parliamentary vote for her proposed Brexit Withdrawal Agreement as she continued to rally support after surviving a vote of confidence against her.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The main detractors to performance during the year included yield curve positioning during the first half of the year, along with allocations to emerging markets debt and Agency Mortgages. The main drivers of positive performance for the year were the Portfolio’s overweight in securitized assets(non-Agency Mortgages, Commercial Mortgages, and Collateralized Loan Obligations), as well as duration positioning.

We began 2018 positioned with a preference for the front end of the yield curve given the attractive risk versus reward profile relative to longer-dated Treasuries and an emphasis on carry-oriented opportunities within high quality assets with less interest rate risk by holding overweight exposure to securitized assets(Non-Agency Mortgages and Collateralized Loan Obligations, in particular).

During the first quarter of 2018, while maintaining an underweight, we tactically increased duration as a hedge, mostly concentrated on the front end of the yield curve. We were also convicted on emerging markets and ended the first quarter with a continued overweight in the sector as synchronized developed market growth bodes well for the asset class. Fundamentals and technicals remained extremely supportive, while valuations resembled broader market richness. We maintained the Portfolio’s allocation to emerging markets within Asia, with a preference for Indonesia and China, and select countries in Latin America.

Into the second quarter of 2018, we maintained the Portfolio’s underweight duration position relative to the benchmark. While firming inflation and growth in the U.S. this year, alongside increased Treasury issuance needs has put upward pressure on rates, geopolitical risk and dovish ECB rhetoric place a meaningful cap on how high they can go in the near term. For these reasons, we remained tactical in our duration management given these crosscurrents. Meanwhile, we reduced the Portfolio’s overweight to emerging markets across countries given the broad-based selling pressure in the sector during the second quarter amidst tightening financial conditions from a stronger U.S. dollar and higher developed market rates. At the end of the quarter, we held long U.S. dollar exposure versus other developed market currencies as a hedge in the Portfolio.

Going into the third quarter of the year, we increased the Portfolio’s overweight to the front end of the curve with a steepening bias. Given the elevated market volatility, as well as rich valuations, we continued to be cautious on broad corporate credit for the quarter, and tactically added back to IG credit on specific new issues to move to neutral relative to the benchmark.

During the fourth quarter, as the Fed started to shift to a more dovish tone, we reduced the Portfolio’s overweight in duration, largely on the front end of the curve, while rotating exposure further out on the curve. As we expected to see more market volatilities into 2019, we moved overweight allocations into higher quality and more liquid sectors in the Portfolio, such as Agency Mortgages and U.S. Municipals, which should benefit from more accommodative monetary policy going forward. We also used this opportunity to rotate from floating to fixed rate exposure in lower quality credit, reducing the Portfolio’s bank loan exposure in favor of high yield bonds while adding to IG credit for high quality income. In emerging markets, while still being modestly positive on the sector, we rotated some exposures into local currency markets from hard currency bonds on attractive entry points given the largere-pricing over the summer.

BHFTII-1

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Managed by BlackRock Advisors, LLC

Portfolio Manager Commentary*—(Continued)

The Portfolio employed derivatives as a tool in seeking efficient management of the Portfolio. During the period, the use of derivatives provided exposures through means believed to be advantageous to the Portfolio, including achieving various market exposures and reducing certain risks, and these derivatives performed as expected.

Rick Rieder

Bob Miller

David Rogal

Portfolio Managers

BlackRock Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
BlackRock Bond Income Portfolio
Class A		-0.36		2.88		4.51
Class B		-0.62		2.62		4.25
Class E		-0.52		2.72		4.35
Bloomberg Barclays U.S. Aggregate Bond Index		0.01		2.52		3.48

¹ The Bloomberg Barclays U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercialmortgage-backed securities.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Sectors

	% of Net Assets
U.S. Treasury & Government Agencies		48.3
Corporate Bonds & Notes		35.7
Asset-Backed Securities		10.7
Municipals		7.4
Mortgage-Backed Securities		4.6
Foreign Government		2.6
Floating Rate Loans		1.3
Purchased Options		0.2

BHFTII-3

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

BlackRock Bond Income Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A	Actual		0.38	%	$	1,000.00	$	1,010.40	$	1.93
	Hypothetical*		0.38	%	$	1,000.00	$	1,023.29	$	1.94
Class B	Actual		0.63	%	$	1,000.00	$	1,009.10	$	3.19
	Hypothetical*		0.63	%	$	1,000.00	$	1,022.03	$	3.21
Class E	Actual		0.53	%	$	1,000.00	$	1,009.60	$	2.68
	Hypothetical*		0.53	%	$	1,000.00	$	1,022.53	$	2.70

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

BHFTII-4

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—48.3% of Net Assets

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—38.3%
Fannie Mae 15 Yr. Pool 2.000%, 10/01/31		257,114	$	246,128
2.000%, 11/01/31		3,164,921		3,029,710
2.000%, 12/01/31		337,630		323,202
2.000%, 03/01/32		2,010,720		1,924,813
2.500%, 09/01/27		293,389		289,340
2.500%, 02/01/28		34,642		34,180
2.500%, 04/01/28		85,287		84,150
2.500%, 08/01/28		234,161		231,033
2.500%, 01/01/30		1,253,273		1,227,250
2.500%, 02/01/30		153,392		150,858
2.500%, 03/01/30		255,646		250,336
2.500%, 07/01/30		882,158		863,686
2.500%, 08/01/30		3,011,617		2,950,994
2.500%, 09/01/30		1,461,450		1,431,081
2.500%, 11/01/30		3,014,397		2,951,738
2.500%, 03/01/31		173,133		170,715
2.500%, 06/01/31		832,057		812,944
2.500%, 07/01/31		466,382		455,669
2.500%, 08/01/31		82,652		80,754
2.500%, 10/01/31		4,041,825		3,948,982
2.500%, 11/01/31		2,507,766		2,450,183
2.500%, 02/01/32		119,443		116,699
2.500%, 03/01/32		388,353		379,432
2.500%, 08/01/32		2,909,648		2,842,812
2.500%, 02/01/33		5,160,033		5,052,805
3.000%, 04/01/28		180,358		180,538
3.000%, 05/01/28		233,740		233,971
3.000%, 10/01/28		401,173		401,157
3.000%, 11/01/28		3,006,697		3,009,685
3.000%, 12/01/28		914,680		915,100
3.000%, 01/01/29		301,685		301,651
3.000%, 04/01/29		1,333,492		1,334,816
3.000%, 05/01/29		1,819,295		1,819,816
3.000%, 08/01/29		2,015,020		2,013,940
3.000%, 10/01/29		527,155		527,679
3.000%, 03/01/30		1,054,683		1,055,732
3.000%, 04/01/30		888,094		888,976
3.000%, 05/01/30		1,344,887		1,346,225
3.000%, 07/01/30		1,073,558		1,074,328
3.000%, 08/01/30		4,949,924		4,954,856
3.000%, 09/01/30		1,170,581		1,171,156
3.000%, 08/01/31		5,041,225		5,038,484
3.000%, 09/01/31		506,995		506,251
3.000%, 03/01/32		1,030,719		1,029,207
3.000%, TBA (a)		9,777,000		9,756,013
3.500%, 08/01/28		552,042		560,814
3.500%, 10/01/28		3,065,975		3,114,677
3.500%, 11/01/28		3,268,973		3,316,884
3.500%, 02/01/29		4,738,957		4,807,518
3.500%, 04/01/29		1,139,711		1,153,961
3.500%, 05/01/29		3,037,480		3,079,189
3.500%, 06/01/29		2,217,553		2,248,680
3.500%, 07/01/29		1,368,878		1,388,541
3.500%, 09/01/29		193,597		196,330
3.500%, 08/01/30		942,815		956,106
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 15 Yr. Pool 3.500%, 11/01/32		225,161		228,291
3.500%, 01/01/33		148,239		150,297
4.000%, 10/01/33		13,055,776		13,394,129
4.500%, 12/01/20		157,692		160,519
4.500%, 02/01/25		303,549		312,066
4.500%, 04/01/25		64,908		66,812
4.500%, 07/01/25		251,115		258,255
4.500%, 06/01/26		1,647,988		1,696,324
Fannie Mae 20 Yr. Pool 3.000%, 10/01/36		113,868		112,768
3.000%, 11/01/36		1,161,315		1,150,100
3.000%, 12/01/36		1,739,348		1,722,552
5.000%, 05/01/23		1,655		1,735
Fannie Mae 30 Yr. Pool 3.000%, 12/01/42		7,064,423		6,955,819
3.000%, 01/01/43		4,820,070		4,744,800
3.000%, 02/01/43		2,299,876		2,263,526
3.000%, 03/01/43		18,691,484		18,391,702
3.000%, 04/01/43		12,646,086		12,443,567
3.000%, 05/01/43		17,002,095		16,731,256
3.000%, 06/01/43		2,205,871		2,170,414
3.000%, 07/01/43		1,246,525		1,226,172
3.000%, 08/01/43		1,007,808		991,428
3.000%, 06/01/46		782,165		766,324
3.000%, 08/01/46		85,071		83,445
3.000%, 09/01/46		1,196,937		1,172,258
3.000%, 11/01/46		4,156,907		4,068,149
3.000%, 01/01/47		401,354		393,048
3.000%, 02/01/47		972,414		951,703
3.000%, 03/01/47		3,185,493		3,115,684
3.000%, TBA (a)		9,948,058		9,707,451
3.500%, 01/01/42		736,466		742,689
3.500%, 04/01/42		442,164		445,754
3.500%, 05/01/42		322,288		324,655
3.500%, 06/01/42		769,712		775,947
3.500%, 07/01/42		118,306		119,266
3.500%, 08/01/42		194,573		196,152
3.500%, 10/01/42		1,047,044		1,055,545
3.500%, 11/01/42		2,348,126		2,367,172
3.500%, 12/01/42		1,180,678		1,190,253
3.500%, 02/01/43		1,405,779		1,417,034
3.500%, 03/01/43		1,495,295		1,504,531
3.500%, 04/01/43		47,244		47,627
3.500%, 05/01/43		277,874		280,103
3.500%, 06/01/43		1,188,493		1,196,499
3.500%, 07/01/43		9,381,406		9,456,711
3.500%, 08/01/43		7,001,401		7,055,671
3.500%, 09/01/43		108,606		109,212
3.500%, 11/01/43		1,149,787		1,155,828
3.500%, 01/01/44		1,102,519		1,110,883
3.500%, 05/01/44		12,595,855		12,721,224
3.500%, 06/01/44		10,252,078		10,335,197
3.500%, 07/01/44		53,126		53,405
3.500%, 02/01/45		1,046,628		1,055,126
3.500%, 07/01/45		3,165,137		3,180,543

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 3.500%, 10/01/45		1,599,493	$	1,614,291
3.500%, 11/01/45		3,367,462		3,393,219
3.500%, 12/01/45		802,851		808,889
3.500%, 03/01/46		1,167,058		1,171,112
3.500%, 04/01/46		1,752,359		1,759,385
3.500%, 05/01/46		737,017		739,539
3.500%, 06/01/46		3,213,965		3,224,828
3.500%, 08/01/46		1,522,956		1,528,010
3.500%, 09/01/46		1,610,502		1,617,066
3.500%, 11/01/46		2,964,017		2,981,504
3.500%, 12/01/46		3,475,757		3,489,163
3.500%, 01/01/47		7,599,407		7,650,502
3.500%, 02/01/47		600,242		603,444
3.500%, 05/01/47		2,019,794		2,028,608
3.500%, 06/01/47		1,233,055		1,236,467
3.500%, 07/01/47		878,413		882,174
3.500%, 09/01/47		855,521		859,182
3.500%, 10/01/47		268,289		269,388
3.500%, 11/01/47		1,471,674		1,481,094
3.500%, 12/01/47		9,988,380		10,032,463
3.500%, 01/01/48		6,479,557		6,506,391
4.000%, 08/01/33		1,125,628		1,147,834
4.000%, 06/01/39		864,286		888,901
4.000%, 12/01/39		79,003		81,248
4.000%, 07/01/40		1,037,566		1,067,062
4.000%, 08/01/40		1,887,183		1,941,116
4.000%, 10/01/40		5,087,027		5,232,418
4.000%, 11/01/40		344,388		354,232
4.000%, 12/01/40		1,732,037		1,781,543
4.000%, 04/01/41		163,861		168,541
4.000%, 09/01/41		4,270,586		4,392,667
4.000%, 10/01/41		298,037		306,558
4.000%, 12/01/41		1,170,712		1,210,043
4.000%, 01/01/42		1,148,424		1,181,255
4.000%, 02/01/42		2,911,402		2,994,612
4.000%, 05/01/42		1,130,213		1,165,524
4.000%, 06/01/42		598,914		616,033
4.000%, 07/01/42		4,199,620		4,338,450
4.000%, 08/01/42		317,192		326,258
4.000%, 09/01/42		784,160		806,549
4.000%, 12/01/42		2,252,574		2,323,736
4.000%, 01/01/43		954,270		981,506
4.000%, 03/01/43		195,888		201,447
4.000%, 10/01/43		718,711		739,240
4.000%, 11/01/43		3,398,253		3,512,413
4.000%, 01/01/44		2,492,362		2,575,791
4.000%, 02/01/44		2,430,489		2,512,136
4.000%, 05/01/44		3,548,102		3,666,659
4.000%, 07/01/44		230,032		235,688
4.000%, 08/01/44		791,465		818,052
4.000%, 12/01/44		2,190,413		2,258,316
4.000%, 01/01/45		350,326		361,389
4.000%, 02/01/45		1,132,727		1,166,839
4.000%, 03/01/45		983,409		1,010,448
4.000%, 04/01/45		873,909		901,503
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 4.000%, 05/01/45		876,019		903,209
4.000%, 10/01/45		5,904,620		6,085,360
4.000%, 11/01/45		2,192,885		2,262,443
4.000%, 12/01/45		4,566,204		4,700,681
4.000%, 01/01/46		4,690,397		4,800,359
4.000%, 02/01/46		1,587,377		1,633,215
4.000%, 06/01/46		3,729,725		3,816,723
4.000%, 11/01/46		277,219		285,415
4.000%, 01/01/47		401,634		413,452
4.000%, 03/01/47		69,518,145		71,453,677
4.000%, 08/01/47		1,008,572		1,033,561
4.000%, 03/01/48		2,618,134		2,696,780
4.000%, 04/01/48		1,631,712		1,680,440
4.000%, 08/01/48		10,217,236		10,469,732
4.500%, 08/01/39		1,261,111		1,321,000
4.500%, 11/01/39		375,774		393,813
4.500%, 01/01/40		39,292		41,175
4.500%, 04/01/40		90,501		94,839
4.500%, 05/01/40		232,820		243,980
4.500%, 06/01/40		215,227		225,544
4.500%, 07/01/40		449,082		470,609
4.500%, 08/01/40		2,970,165		3,112,558
4.500%, 11/01/40		843,631		884,073
4.500%, 07/01/41		253,231		265,254
4.500%, 08/01/41		34,457		35,696
4.500%, 09/01/41		901,333		942,457
4.500%, 10/01/41		182,184		190,749
4.500%, 01/01/42		174,948		183,332
4.500%, 06/01/42		82,745		85,740
4.500%, 08/01/42		1,039,958		1,084,027
4.500%, 09/01/42		2,691,670		2,820,576
4.500%, 09/01/43		1,068,510		1,113,106
4.500%, 10/01/43		1,309,619		1,362,586
4.500%, 12/01/43		1,611,736		1,679,059
4.500%, 01/01/44		1,689,934		1,760,356
4.500%, 09/01/45		746,019		784,588
4.500%, 11/01/45		479,396		503,374
4.500%, 12/01/45		1,211,234		1,266,306
4.500%, 09/01/46		623,107		655,800
4.500%, 09/01/47		83,239		86,400
4.500%, 10/01/47		211,176		219,879
4.500%, 11/01/47		54,044		56,193
4.500%, 12/01/47		67,040		69,703
4.500%, 02/01/48		122,420		127,063
4.500%, 03/01/48		228,084		236,963
4.500%, 04/01/48		1,401,331		1,473,959
4.500%, 05/01/48		18,918,285		19,831,170
4.500%, 07/01/48		269,983		282,464
4.500%, 08/01/48		578,179		609,761
4.500%, TBA (a)		88,200,000		91,291,705
5.000%, 11/01/32		3,607		3,787
5.000%, 09/01/35		202,656		215,246
5.000%, 06/01/39		8,797,920		9,283,776
5.000%, 04/01/41		35,810		38,027

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 5.000%, 07/01/41		381,011	$	403,120
5.000%, 08/01/41		349,820		370,119
5.000%, 01/01/42		51,157		53,614
5.000%, TBA (a)		77,579,000		81,286,243
5.500%, 11/01/32		946,603		1,013,258
5.500%, 12/01/32		169,969		181,946
5.500%, 01/01/33		655,103		700,135
5.500%, 12/01/33		227,598		244,153
5.500%, 05/01/34		1,785,578		1,924,001
5.500%, 08/01/37		1,847,873		1,991,323
5.500%, 02/01/38		298,014		319,729
5.500%, 03/01/38		196,772		211,841
5.500%, 04/01/38		111,313		117,853
5.500%, 06/01/38		298,638		316,582
5.500%, 12/01/38		116,956		123,827
5.500%, 01/01/39		294,503		315,955
5.500%, 08/01/39		193,396		205,282
5.500%, 12/01/39		431,050		459,092
5.500%, 04/01/40		69,525		74,112
5.500%, 04/01/41		277,166		295,832
5.500%, TBA (a)		3,696,000		3,913,724
6.000%, 02/01/34		207,103		225,887
6.000%, 08/01/34		154,527		168,567
6.000%, 04/01/35		2,455,232		2,678,050
6.000%, 06/01/36		295,906		325,090
6.000%, 02/01/38		514,157		560,236
6.000%, 03/01/38		155,384		169,714
6.000%, 05/01/38		503,232		551,068
6.000%, 10/01/38		620,445		677,012
6.000%, 12/01/38		189,397		206,697
6.000%, 04/01/40		1,987,402		2,168,522
6.000%, 09/01/40		206,076		224,020
6.000%, 06/01/41		458,158		500,012
6.500%, 05/01/40		2,891,751		3,267,732
Fannie Mae Connecticut Avenue Securities (CMO) 6.106%, 1M LIBOR + 3.600%, 01/25/30 (b)		1,105,163		1,097,748
6.506%, 1M LIBOR + 4.000%, 05/25/30 (b)		1,140,000		1,143,109
6.756%, 1M LIBOR + 4.250%, 04/25/29 (b)		1,620,000		1,779,930
Fannie Mae Pool 4.000%, 01/01/41		432,499		443,541
Fannie Mae REMICS (CMO) 5.000%, 04/25/35		47,548		49,096
FannieMae-ACES (CMO) 2.632%, 01/25/39 (b) (c)		2,848,879		255,564
2.961%, 02/25/27 (b)		1,598,000		1,555,309
2.986%, 12/25/27 (b)		507,000		496,062
Freddie Mac 15 Yr. Gold Pool 2.500%, 04/01/27		122,509		121,072
2.500%, 10/01/28		424,051		419,069
2.500%, 08/01/29		987,440		973,529
2.500%, 12/01/29		285,964		280,751
2.500%, 05/01/30		1,052,887		1,030,666
2.500%, 07/01/30		714,960		700,061
2.500%, 08/01/30		2,446,290		2,392,897
2.500%, 09/01/30		2,680,195		2,619,592
2.500%, 04/01/31		1,914,013		1,869,686
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac 15 Yr. Gold Pool 2.500%, TBA (a)		7,117,000		6,942,208
3.000%, 01/01/30		786,329		786,762
3.000%, 04/01/30		4,119,365		4,120,423
3.000%, 05/01/30		661,497		662,119
3.000%, 06/01/30		28,363		28,357
3.000%, 07/01/30		1,503,608		1,502,587
3.000%, 08/01/30		483,786		483,011
3.000%, TBA (a)		9,130,000		9,095,508
3.500%, TBA (a)		6,274,000		6,349,938
4.000%, TBA (a)		2,651,000		2,712,340
Freddie Mac 30 Yr. Gold Pool 3.000%, 12/01/42		2,604,581		2,561,547
3.000%, 01/01/43		1,737,784		1,708,499
3.000%, 03/01/43		3,757,086		3,692,940
3.000%, 07/01/43		10,918,516		10,727,948
3.000%, 12/01/46		3,008,624		2,940,702
3.000%, TBA (a)		36,349,779		35,429,141
3.500%, 04/01/42		2,221,386		2,238,423
3.500%, 05/01/42		110,238		110,958
3.500%, 08/01/42		2,711,634		2,734,054
3.500%, 10/01/42		143,341		143,798
3.500%, 11/01/42		1,043,408		1,051,393
3.500%, 01/01/43		1,282,136		1,291,976
3.500%, 06/01/43		300,086		302,359
3.500%, 12/01/43		4,971,202		5,009,354
3.500%, 01/01/44		22,521,547		22,694,907
3.500%, 04/01/44		2,231,133		2,248,217
3.500%, 05/01/44		553,096		557,433
3.500%, 06/01/44		391,329		394,289
3.500%, 07/01/44		111,684		112,714
3.500%, 08/01/44		422,328		425,438
3.500%, 09/01/44		877,169		883,953
3.500%, 11/01/44		23,471		23,613
3.500%, 01/01/45		168,955		169,730
3.500%, 05/01/45		251,146		252,008
3.500%, 06/01/45		214,760		215,544
3.500%, 07/01/45		6,014		6,036
3.500%, 08/01/45		6,501,625		6,549,532
3.500%, 09/01/45		186,249		187,834
3.500%, 10/01/45		23,692		23,779
3.500%, 01/01/46		1,083,740		1,087,698
3.500%, 02/01/46		74,986		75,260
3.500%, 03/01/46		774,728		777,557
3.500%, 05/01/46		883,446		886,672
3.500%, 07/01/46		7,994,876		8,040,164
3.500%, 03/01/47		2,241,155		2,252,122
3.500%, 07/01/47		342,329		344,852
3.500%, 10/01/47		1,364,569		1,372,938
3.500%, 12/01/47		1,685,581		1,693,307
3.500%, 01/01/48		560,802		563,156
3.500%, TBA (a)		8,027,164		8,024,637
4.000%, 08/01/40		287,408		295,716
4.000%, 09/01/40		317,780		326,868
4.000%, 10/01/40		137,541		141,521
4.000%, 11/01/40		620,560		638,498
4.000%, 04/01/41		16,524		17,002

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac 30 Yr. Gold Pool 4.000%, 10/01/41		542,662	$	558,366
4.000%, 09/01/43		444,483		457,605
4.000%, 04/01/44		993,026		1,020,649
4.000%, 07/01/44		336,562		345,863
4.000%, 08/01/44		3,203,492		3,297,970
4.000%, 02/01/45		291,848		298,934
4.000%, 09/01/45		1,246,445		1,274,627
4.000%, 10/01/45		1,786,465		1,831,606
4.000%, 12/01/45		12,275,447		12,534,012
4.000%, 01/01/47		5,812,797		5,975,792
4.000%, 08/01/47		2,285,772		2,349,572
4.000%, TBA (a)		26,809,000		27,329,882
4.500%, 02/01/39		1,156,615		1,200,191
4.500%, 08/01/39		1,036,400		1,085,409
4.500%, 12/01/39		254,233		266,277
4.500%, 07/01/40		79,155		82,904
4.500%, 05/01/41		1,609,730		1,685,988
4.500%, 05/01/42		1,492,153		1,562,764
4.500%, 10/01/43		798,638		828,420
4.500%, 12/01/43		1,858,455		1,934,935
4.500%, 07/01/47		1,887,240		1,981,106
4.500%, 08/01/48		10,163,960		10,645,962
4.500%, TBA (a)		2,009,000		2,080,135
5.000%, 10/01/41		632,207		669,377
5.000%, 11/01/41		5,413,337		5,731,621
5.500%, 02/01/35		147,086		158,814
5.500%, 09/01/39		180,404		192,720
5.500%, 01/01/40		97,675		103,383
5.500%, 07/01/40		29,786		31,521
5.500%, 06/01/41		2,182,633		2,349,778
Freddie Mac Gold Pool 3.000%, 09/01/27		585,625		584,014
3.000%, 07/01/28		316,195		315,325
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO) 0.846%, 06/25/27 (b) (c)		2,627,661		141,271
2.653%, 08/25/26		270,000		259,968
2.770%, 05/25/25		1,110,000		1,090,210
3.120%, 09/25/26 (b)		1,080,000		1,072,781
3.224%, 03/25/27		771,000		769,513
3.347%, 11/25/26 (b)		490,000		493,428
3.430%, 01/25/27 (b)		410,000		415,181
3.444%, 12/25/27		210,000		211,890
3.531%, 07/25/23 (b)		500,000		511,559
3.590%, 01/25/25		291,000		298,279
Freddie Mac Structured Agency Credit Risk Debt Notes (CMO) 4.306%, 1M LIBOR + 1.800%, 07/25/30 (b)		194,389		186,699
4.656%, 1M LIBOR + 2.150%, 12/25/30 (144A) (b)		950,000		922,265
5.956%, 1M LIBOR + 3.450%, 10/25/29 (b)		467,815		495,039
6.306%, 1M LIBOR + 3.800%, 03/25/29 (b)		1,310,000		1,412,963
6.956%, 1M LIBOR + 4.450%, 03/25/30 (b)		682,210		721,834
FREMF Mortgage Trust (CMO) 3.981%, 05/25/50 (144A) (b)		275,556		266,836
4.051%, 04/25/48 (144A) (b)		360,000		355,290
4.229%, 08/25/50 (144A) (b)		440,000		426,394
Agency Sponsored Mortgage - Backed—(Continued)
FRESB Mortgage Trust (CMO) 3.480%, 06/25/28 (b)		717,789	$	719,044
3.660%, 06/25/28 (b)		423,207		428,479
Ginnie Mae I 30 Yr. Pool 3.000%, 02/15/45		1,352,876		1,337,340
3.500%, 01/15/42		397,866		402,438
3.500%, 02/15/42		164,269		166,088
3.500%, 04/15/42		305,482		309,020
3.500%, 05/15/42		342,261		346,845
3.500%, 08/15/42		473,225		479,148
3.500%, 11/15/42		295,076		298,013
3.500%, 12/15/42		1,050,315		1,064,328
3.500%, 01/15/43		467,523		472,176
3.500%, 02/15/43		719,314		726,999
3.500%, 03/15/43		379,153		382,853
3.500%, 04/15/43		2,135,047		2,160,680
3.500%, 05/15/43		2,428,756		2,456,788
3.500%, 06/15/43		636,109		643,816
3.500%, 07/15/43		2,280,832		2,311,300
4.000%, 03/15/41		813,705		838,557
4.000%, 12/15/41		25,326		25,960
4.500%, 02/15/42		10,008,685		10,452,962
4.500%, 03/15/47		144,952		151,475
4.500%, 04/15/47		377,345		394,471
4.500%, 05/15/47		133,675		139,778
5.000%, 12/15/38		283,308		300,379
5.000%, 07/15/39		673,516		714,037
5.000%, 10/15/39		362,877		384,832
5.000%, 09/15/40		25,290		26,796
5.000%, 12/15/40		910,782		965,632
5.500%, 04/15/33		25,555		27,659
6.500%, 04/15/33		45,629		49,127
8.500%, 05/15/22		435		436
Ginnie Mae II 30 Yr. Pool 3.000%, 12/20/44		164,923		163,315
3.000%, 04/20/45		3,199,303		3,159,183
3.000%, 06/20/45		8,356,749		8,250,230
3.000%, 07/20/45		86,622		85,509
3.000%, 08/20/45		86,537		85,416
3.000%, 10/20/45		1,035,726		1,022,203
3.000%, 12/20/45		90,637		89,426
3.000%, 04/20/46		18,457,501		18,199,395
3.000%, 05/20/46		131,043		129,230
3.000%, 06/20/46		2,994,244		2,950,529
3.000%, 07/20/46		6,167,106		6,078,006
3.000%, 08/20/46		1,161,482		1,144,521
3.000%, 09/20/46		11,297,488		11,137,701
3.000%, 10/20/46		448,432		441,745
3.000%, 11/20/46		291,244		286,857
3.000%, 12/20/46		1,106,665		1,089,820
3.500%, 04/20/43		2,109,366		2,134,721
3.500%, 05/20/43		1,133,520		1,147,160
3.500%, 07/20/43		88,467		89,531
3.500%, 02/20/44		2,629,077		2,649,360
3.500%, 05/20/45		739,616		746,231
3.500%, 04/20/46		35,574,367		35,876,137

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Ginnie Mae II 30 Yr. Pool 3.500%, 05/20/46		1,609,382	$	1,622,538
3.500%, 06/20/46		18,366,605		18,513,921
3.500%, 07/20/46		3,125,827		3,149,937
3.500%, 09/20/46		597,400		601,916
3.500%, 10/20/46		2,376,958		2,396,341
3.500%, 11/20/46		14,374,234		14,478,968
3.500%, TBA (a)		990,496		997,251
4.000%, 04/20/39		46,938		48,483
4.000%, 07/20/39		349,069		360,590
4.000%, 09/20/40		95,634		98,922
4.000%, 10/20/40		1,067,664		1,102,927
4.000%, 11/20/40		594,567		614,189
4.000%, 12/20/40		2,236,834		2,310,705
4.000%, 01/20/41		1,964,791		2,029,724
4.000%, 02/20/41		34,718		35,863
4.000%, 07/20/43		185,301		191,343
4.000%, 08/20/44		759,769		783,851
4.000%, 10/20/46		162,019		166,437
4.000%, TBA (a)		97,287,500		99,629,003
4.500%, 12/20/39		79,174		83,078
4.500%, 01/20/40		98,645		103,511
4.500%, 02/20/40		77,488		81,312
4.500%, 05/20/40		5,294		5,555
4.500%, 09/20/48		917,176		957,709
4.500%, TBA (a)		51,030,500		52,805,071
5.000%, 10/20/33		821,679		879,967
5.000%, 10/20/39		278,993		296,843
5.000%, 07/20/42		360,532		380,367
5.000%, TBA (a)		7,233,000		7,524,727
Government National Mortgage Association (CMO) 0.578%, 06/16/53 (b) (c)		1,312,402		31,640
0.674%, 02/16/50 (b) (c)		1,850,636		82,565
0.727%, 03/16/55 (b) (c)		3,472,362		182,435
0.747%, 11/16/53 (b) (c)		1,064,506		37,138
0.773%, 05/16/59 (b) (c)		2,154,132		144,901
0.790%, 09/16/51 (b) (c)		17,565,443		924,336
0.807%, 05/16/59 (b) (c)		3,066,569		207,336
0.825%, 08/16/41 (c)		3,097,510		43,290
0.890%, 09/16/55 (b) (c)		2,157,108		141,722
0.891%, 11/16/55 (b) (c)		3,387,303		208,701
0.907%, 06/16/58 (b) (c)		2,702,827		200,319
0.926%, 08/15/58 (b) (c)		6,843,319		517,915
0.952%, 09/16/56 (b) (c)		1,360,393		105,599
0.965%, 02/16/58 (b) (c)		5,300,940		366,334
0.997%, 09/16/58 (b) (c)		1,998,805		161,345
1.000%, 02/16/39 (c)		2,281,165		19,187
1.003%, 08/16/58 (b) (c)		3,796,361		285,632
1.032%, 05/16/58 (b) (c)		2,587,263		191,452
1.062%, 12/16/57 (b) (c)		3,733,276		293,120
1.124%, 04/16/58 (b) (c)		1,560,838		129,368
2.000%, 03/16/35		199,252		181,609
2.250%, 12/16/38		313,442		291,129
				1,350,063,958
U.S. Treasury—10.0%
U.S. Treasury Bonds 2.875%, 05/15/43		8,084,000		7,905,833
2.875%, 11/15/46 (d)		2,181,000		2,124,424
3.000%, 02/15/47		1,447,000		1,445,504
3.000%, 08/15/48 (e)		15,110,000		15,064,576
3.125%, 02/15/43 (e)		7,953,000		8,126,612
3.625%, 08/15/43		7,590,000		8,415,949
3.750%, 11/15/43		8,055,000		9,113,068
4.250%, 05/15/39		2,095,000		2,530,740
4.375%, 11/15/39		2,042,000		2,507,030
4.500%, 08/15/39		2,035,000		2,539,415
U.S. Treasury Notes 1.000%, 10/15/19		20,393,000		20,135,698
1.125%, 06/30/21		14,275,000		13,814,024
1.250%, 08/31/19 (d)		20,393,000		20,208,985
1.625%, 06/30/20		12,746,000		12,572,708
1.625%, 07/31/20		12,746,000		12,564,007
1.625%, 10/31/23		11,216,000		10,764,630
1.875%, 04/30/22		14,275,000		14,001,565
2.000%, 04/30/24		12,236,000		11,912,672
2.000%, 05/31/24		12,236,000		11,905,197
2.000%, 08/15/25		5,098,000		4,916,489
2.000%, 11/15/26		8,440,000		8,062,354
2.125%, 09/30/21		14,275,000		14,138,124
2.250%, 07/31/21		14,275,000		14,193,948
2.250%, 01/31/24		11,216,000		11,069,464
2.250%, 11/15/25		5,098,000		4,987,725
2.250%, 02/15/27 (e)		8,263,000		8,029,491
2.625%, 08/31/20 (d)		27,790,000		27,823,583
2.625%, 05/15/21 (d)		23,914,000		23,986,585
2.750%, 08/31/23 (d)		27,100,000		27,403,074
2.750%, 08/31/25		11,460,000		11,576,036
2.875%, 08/15/28		9,650,000		9,806,092
				353,645,602
Total U.S. Treasury & Government Agencies (Cost $1,714,643,655)				1,703,709,560
Corporate Bonds & Notes—35.7%
Advertising—0.0%
ACE03 MH1 B2 Zero Coupon, 08/15/30		642,759		477,969
Interpublic Group of Cos., Inc. (The)
3.500%, 10/01/20		495,000		495,522
3.750%, 10/01/21		265,000		266,563
				1,240,054
Aerospace/Defense—1.3%
BAE Systems Holdings, Inc. 2.850%, 12/15/20 (144A)		2,599,000		2,564,248
3.850%, 12/15/25 (144A)		1,765,000		1,750,695
4.750%, 10/07/44 (144A)		132,000		132,714
Boeing Co. (The)
6.125%, 02/15/33		275,000		348,369

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Aerospace/Defense—(Continued)
General Dynamics Corp. 3.750%, 05/15/28		1,015,000	$	1,026,452
Harris Corp. 2.700%, 04/27/20		706,000		699,890
4.400%, 06/15/28		2,865,000		2,853,731
5.054%, 04/27/45		1,115,000		1,148,444
L3 Technologies, Inc. 3.850%, 06/15/23		2,205,000		2,208,295
3.850%, 12/15/26		1,885,000		1,825,754
4.400%, 06/15/28		340,000		340,128
4.950%, 02/15/21		435,000		445,124
Lockheed Martin Corp. 2.900%, 03/01/25		670,000		643,172
3.550%, 01/15/26		815,000		809,108
3.600%, 03/01/35		2,306,000		2,149,463
3.800%, 03/01/45		675,000		617,170
4.070%, 12/15/42		1,160,000		1,108,323
4.090%, 09/15/52		594,000		557,077
4.700%, 05/15/46		2,005,000		2,094,145
Northrop Grumman Corp. 2.550%, 10/15/22		2,940,000		2,847,545
2.930%, 01/15/25		3,065,000		2,909,574
3.250%, 01/15/28		3,106,000		2,904,015
3.850%, 04/15/45		690,000		610,033
4.030%, 10/15/47		1,180,000		1,074,774
Raytheon Co. 7.200%, 08/15/27		530,000		667,361
United Technologies Corp. 1.950%, 11/01/21		3,825,000		3,671,646
4.125%, 11/16/28		4,050,000		4,021,513
4.150%, 05/15/45		696,000		623,294
4.500%, 06/01/42		2,485,000		2,344,294
				44,996,351
Agriculture—0.3%
Altria Group, Inc.
2.850%, 08/09/22		475,000		455,966
4.000%, 01/31/24 (f)		2,440,000		2,397,736
BAT Capital Corp.
3.222%, 08/15/24		2,625,000		2,417,525
4.540%, 08/15/47		1,818,000		1,449,059
Reynolds American, Inc. 4.450%, 06/12/25		5,615,000		5,416,514
				12,136,800
Airlines—0.6%
Air Canada Pass-Through Trust 3.700%, 01/15/26 (144A)		10,000		9,487
American Airlines Group, Inc. 4.625%, 03/01/20 (144A)		2,214,000		2,202,930
American Airlines Pass-Through Trust 3.375%, 05/01/27		2,386,537		2,268,021
3.700%, 05/01/23		40,842		39,380
3.700%, 10/15/25		137,670		133,119
Airlines—(Continued)
American Airlines Pass-Through Trust
4.400%, 09/22/23		1,720,441		1,687,237
4.950%, 02/15/25		131,625		131,929
5.250%, 01/15/24		55,595		57,207
Azul Investments LLP 5.875%, 10/26/24 (144A)		200,000		186,752
Delta Air Lines, Inc.
2.600%, 12/04/20		3,005,000		2,954,259
2.875%, 03/13/20		8,220,000		8,164,356
3.400%, 04/19/21		265,000		262,779
Gol Finance, Inc. 7.000%, 01/31/25 (144A)		1,274,000		1,129,082
Turkish Airlines Pass-Through Trust 4.200%, 03/15/27 (144A)		1,058,805		914,596
U.S. Airways Pass-Through Trust 5.375%, 11/15/21		161,384		166,279
6.750%, 06/03/21		43,351		45,292
United Airlines Pass-Through Trust 2.875%, 10/07/28		217,842		200,044
3.450%, 12/01/27		8,791		8,314
3.650%, 01/07/26		47,859		46,778
4.600%, 03/01/26		595,000		595,186
4.750%, 04/11/22		315,357		316,145
				21,519,172
Auto Manufacturers—2.0%
BMW U.S. Capital LLC 2.800%, 04/11/26 (144A)		900,000		825,227
Daimler Finance North America LLC 2.300%, 02/12/21 (144A)		1,015,000		990,248
3.100%, 05/04/20 (144A)		3,130,000		3,112,470
3.350%, 05/04/21 (144A)		3,770,000		3,758,195
3.750%, 11/05/21 (144A)		890,000		892,981
Ford Motor Credit Co. LLC 2.979%, 08/03/22		2,125,000		1,960,209
3.096%, 05/04/23		1,930,000		1,744,577
3.157%, 08/04/20		500,000		489,884
3.200%, 01/15/21		1,310,000		1,269,308
3.219%, 01/09/22		9,970,000		9,362,095
3.336%, 03/18/21		205,000		198,907
5.750%, 02/01/21 (f)		2,714,000		2,767,912
5.875%, 08/02/21		670,000		687,104
General Motors Co. 5.400%, 04/01/48 (f)		300,000		255,799
6.250%, 10/02/43		250,000		234,587
6.750%, 04/01/46		370,000		358,572
General Motors Financial Co., Inc. 3.100%, 01/15/19		814,000		813,968
3.150%, 06/30/22		4,710,000		4,489,766
3.200%, 07/06/21		6,650,000		6,495,504
4.000%, 01/15/25		2,576,000		2,409,757
4.000%, 10/06/26		390,000		350,297
4.200%, 03/01/21 (f)		815,000		814,466
4.200%, 11/06/21		7,200,000		7,196,299

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Auto Manufacturers—(Continued)
Hyundai Capital America 2.550%, 04/03/20 (144A)		8,645,000	$	8,534,592
Hyundai Capital Services, Inc. 3.000%, 08/29/22 (144A)		1,220,000		1,180,296
Toyota Motor Corp. 3.669%, 07/20/28		535,000		541,795
Toyota Motor Credit Corp. 3.050%, 01/11/28 (f)		950,000		917,231
Volkswagen Group of America Finance LLC 2.400%, 05/22/20 (144A)		2,000,000		1,968,617
3.875%, 11/13/20 (144A)		3,075,000		3,089,402
4.000%, 11/12/21 (144A)		3,215,000		3,221,444
				70,931,509
Auto Parts & Equipment—0.1%
Aptiv plc 4.250%, 01/15/26		364,000		354,280
ZF North America Capital, Inc. 4.750%, 04/29/25 (144A)		3,203,000		2,982,173
				3,336,453
Banks—9.9%
ABN AMRO Bank NV 2.650%, 01/19/21 (144A)		2,590,000		2,552,720
Banco Espirito Santo S.A. 4.000%, 01/21/19 (EUR) (g) (k)		200,000		64,162
Banco Mercantil del Norte S.A. 6.875%, 5Y H15 + 5.035%, 07/06/22 (144A) (b)		251,000		242,845
Banco Santander S.A. 3.848%, 04/12/23 (f)		2,000,000		1,943,214
Bank of America Corp. 2.328%, 3M LIBOR + 0.630%, 10/01/21 (b)		11,882,000		11,649,744
2.369%, 3M LIBOR + 0.660%, 07/21/21 (b)		3,945,000		3,874,305
2.625%, 10/19/20		1,475,000		1,459,264
3.300%, 01/11/23		640,000		630,274
3.366%, 3M LIBOR + 0.810%, 01/23/26 (b)		1,180,000		1,128,665
3.419%, 3M LIBOR + 1.040%, 12/20/28 (b)		7,700,000		7,197,221
3.499%, 3M LIBOR + 0.630%, 05/17/22 (b)		2,350,000		2,350,264
3.500%, 04/19/26		510,000		491,196
3.875%, 08/01/25		3,970,000		3,929,143
3.950%, 04/21/25		2,075,000		2,011,406
3.970%, 3M LIBOR + 1.070%, 03/05/29 (b)		960,000		933,711
4.183%, 11/25/27		955,000		918,439
4.200%, 08/26/24		3,245,000		3,218,151
5.700%, 01/24/22		2,545,000		2,697,263
Bank of New York Mellon Corp. (The) 4.625%, 3M LIBOR + 3.131%, 09/20/26 (b)		2,405,000		2,131,425
Barclays plc 4.338%, 3M LIBOR + 1.356%, 05/16/24 (b) (f)		2,655,000		2,581,163
4.950%, 01/10/47		2,031,000		1,797,050
4.972%, 3M LIBOR + 1.902%, 05/16/29 (b)		3,060,000		2,952,084
BBVA Bancomer S.A. 6.750%, 09/30/22 (144A) (f)		251,000		264,494
BNP Paribas S.A. 2.950%, 05/23/22 (144A)		4,050,000		3,902,895
Banks—(Continued)
BNP Paribas S.A. 3.800%, 01/10/24 (144A)		2,148,000		2,091,196
7.000%, 5Y USD ICE Swap + 3.980%, 08/16/28 (144A) (b)		765,000		727,706
BPCE S.A. 3.000%, 05/22/22 (144A)		3,500,000		3,380,790
Citigroup, Inc. 2.500%, 07/29/19		3,634,000		3,621,633
2.876%, 3M LIBOR + 0.950%, 07/24/23 (b)		1,535,000		1,485,010
2.900%, 12/08/21		5,235,000		5,150,099
3.750%, 06/16/24		1,630,000		1,618,452
3.887%, 3M LIBOR + 1.563%, 01/10/28 (b)		760,000		731,052
4.400%, 06/10/25		1,530,000		1,497,974
4.450%, 09/29/27		500,000		482,122
Citizens Bank N.A. 2.250%, 03/02/20		6,026,000		5,960,749
2.650%, 05/26/22		4,875,000		4,736,010
Credit Suisse Group AG 4.207%, 3M LIBOR + 1.240%, 06/12/24 (144A) (b)		2,265,000		2,259,001
7.250%, 5Y USD ICE Swap + 4.332%, 09/12/25 (144A) (b)		2,035,000		1,919,717
Credit Suisse Group Funding Guernsey, Ltd. 2.750%, 03/26/20		4,269,000		4,222,392
3.125%, 12/10/20		8,102,000		8,021,132
Deutsche Bank AG 2.700%, 07/13/20		3,815,000		3,710,016
2.950%, 08/20/20 (f)		1,874,000		1,818,626
4.250%, 02/04/21		4,445,000		4,379,679
4.250%, 10/14/21		1,040,000		1,016,819
Discover Bank 4.650%, 09/13/28		440,000		428,892
Fifth Third Bank 2.250%, 06/14/21		3,062,000		2,988,995
Gilex Holding S.a.r.l. 8.500%, 05/02/23 (144A)		694,000		701,814
Goldman Sachs Group, Inc. (The) 2.000%, 04/25/19		950,000		946,688
2.350%, 11/15/21		4,120,000		3,972,369
2.750%, 09/15/20		1,326,000		1,312,056
2.754%, 02/08/19 (144A)		22,000,000		21,986,275
3.691%, 3M LIBOR + 1.510%, 06/05/28 (b)		5,135,000		4,774,969
3.786%, 3M LIBOR + 1.170%, 05/15/26 (b)		1,310,000		1,257,304
4.017%, 3M LIBOR + 1.373%, 10/31/38 (b)		1,370,000		1,205,174
4.223%, 3M LIBOR + 1.301%, 05/01/29 (b)		2,935,000		2,826,289
HSBC Holdings plc 2.650%, 01/05/22		3,200,000		3,104,278
3.950%, 3M LIBOR + 0.987%, 05/18/24 (b)		1,525,000		1,516,674
5.100%, 04/05/21		1,600,000		1,654,518
6.000%, 5Y USD ICE Swap + 3.746%, 05/22/27 (b)		3,575,000		3,219,216
HSBC USA, Inc. 2.350%, 03/05/20		4,175,000		4,132,331
ING Bank NV 5.800%, 09/25/23 (144A)		1,460,000		1,524,917
ING Groep NV 4.100%, 10/02/23		3,815,000		3,812,437

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Banks—(Continued)
Intesa Sanpaolo S.p.A. 5.017%, 06/26/24 (144A)		4,675,000	$	4,230,208
6.500%, 02/24/21 (144A)		800,000		820,117
Itau Unibanco Holding S.A. 6.125%, 5Y H15 + 3.981%, 12/12/22 (144A) (b)		400,000		375,000
6.500%, 5Y H15 + 3.863%, 03/19/23 (144A) (b)		200,000		189,250
JPMorgan Chase & Co. 2.550%, 03/01/21		1,969,000		1,941,153
2.972%, 01/15/23		1,474,000		1,437,038
3.514%, 3M LIBOR + 0.610%, 06/18/22 (b)		2,730,000		2,736,072
3.540%, 3M LIBOR + 1.380%, 05/01/28 (b)		1,565,000		1,493,073
3.559%, 3M LIBOR + 0.730%, 04/23/24 (b)		725,000		719,474
3.782%, 3M LIBOR + 1.337%, 02/01/28 (b)		2,630,000		2,554,366
3.797%, 3M LIBOR + 0.890%, 07/23/24 (b)		3,998,000		4,004,968
3.882%, 3M LIBOR + 1.360%, 07/24/38 (b)		3,100,000		2,824,427
4.023%, 3M LIBOR + 1.000%, 12/05/24 (b)		6,635,000		6,691,071
4.203%, 3M LIBOR + 1.260%, 07/23/29 (b) (f)		2,210,000		2,204,627
4.452%, 3M LIBOR + 1.330%, 12/05/29 (b)		1,000,000		1,017,780
4.625%, 05/10/21		1,708,000		1,757,683
KeyBank N.A. 3.350%, 06/15/21		440,000		441,356
KeyCorp 4.150%, 10/29/25		890,000		904,437
Lloyds Banking Group plc 3.750%, 01/11/27		1,715,000		1,576,402
4.450%, 05/08/25		1,820,000		1,807,970
4.650%, 03/24/26		4,530,000		4,261,060
Mitsubishi UFJ Financial Group, Inc. 2.998%, 02/22/22 (f)		256,000		252,404
3.455%, 03/02/23		8,320,000		8,268,446
3.535%, 07/26/21		265,000		265,753
Mizuho Financial Group, Inc. 2.273%, 09/13/21		942,000		912,046
2.601%, 09/11/22		425,000		411,049
2.953%, 02/28/22		12,595,000		12,347,175
3.922%, 3M LIBOR + 1.000%, 09/11/24 (b)		690,000		697,251
Morgan Stanley 2.750%, 05/19/22		4,900,000		4,766,886
3.591%, 3M LIBOR + 1.340%, 07/22/28 (b)		5,530,000		5,226,637
3.625%, 01/20/27		1,840,000		1,749,673
3.772%, 3M LIBOR + 1.140%, 01/24/29 (b)		3,140,000		3,006,050
6.250%, 08/09/26		1,661,000		1,840,138
Nordea Bank Abp 2.125%, 05/29/20 (144A)		2,810,000		2,766,936
3.750%, 08/30/23 (144A)		1,830,000		1,804,934
Northern Trust Corp. 3.375%, 3M LIBOR + 1.131%, 05/08/32 (b)		1,630,000		1,517,574
Promerica Financial Corp. 9.700%, 05/14/24 (144A)		747,000		769,410
Royal Bank of Scotland Group plc 3.498%, 3M LIBOR + 1.480%, 05/15/23 (b)		1,370,000		1,317,354
4.892%, 3M LIBOR + 1.754%, 05/18/29 (b)		310,000		296,080
5.076%, 3M LIBOR + 1.905%, 01/27/30 (b)		3,015,000		2,909,024
Santander UK Group Holdings plc 2.875%, 08/05/21		4,355,000		4,201,068
Santander UK plc 5.000%, 11/07/23 (144A)		3,760,000		3,671,602
Banks—(Continued)
Standard Chartered plc 4.247%, 3M LIBOR + 1.150%, 01/20/23 (144A) (b)		4,865,000		4,816,141
State Street Corp. 2.650%, 05/19/26 (f)		1,246,000		1,167,221
5.625%, 3M LIBOR + 2.539%, 12/15/23 (b) (f)		2,815,000		2,660,175
Sumitomo Mitsui Trust Bank, Ltd. 1.950%, 09/19/19 (144A)		5,465,000		5,416,533
2.050%, 03/06/19 (144A)		15,092,000		15,065,802
SunTrust Banks, Inc. 4.000%, 05/01/25		610,000		612,220
Synchrony Bank 3.650%, 05/24/21		2,600,000		2,543,864
Toronto-Dominion Bank (The) 3.500%, 07/19/23		1,020,000		1,026,958
U.S. Bancorp 2.950%, 07/15/22		1,825,000		1,800,077
U.S. Bank N.A. 3.104%, 3M LIBOR + 0.290%, 05/21/21 (b)		1,050,000		1,048,411
UBS Group Funding Switzerland AG 2.859%, 3M LIBOR + 0.954%, 08/15/23 (144A) (b)		3,575,000		3,438,208
2.950%, 09/24/20 (144A)		4,195,000		4,149,894
4.125%, 09/24/25 (144A)		5,280,000		5,246,228
UniCredit S.p.A. 5.861%, 5Y USD ICE Swap + 3.703%, 06/19/32 (144A) (b) (f)		2,645,000		2,321,686
Wells Fargo & Co. 2.500%, 03/04/21		4,185,000		4,117,667
2.600%, 07/22/20		1,285,000		1,272,335
2.625%, 07/22/22		2,945,000		2,839,605
3.500%, 03/08/22		1,340,000		1,335,479
3.584%, 3M LIBOR + 1.310%, 05/22/28 (b)		2,310,000		2,219,016
Wells Fargo Bank N.A. 3.325%, 3M LIBOR + 0.490%, 07/23/21 (b)		350,000		349,650
3.550%, 08/14/23		2,815,000		2,804,660
				350,353,321
Beverages—0.5%
Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. 4.700%, 02/01/36 (144A)		5,815,000		5,414,884
4.900%, 02/01/46 (144A)		1,650,000		1,532,141
Anheuser-Busch InBev Finance, Inc. 3.300%, 02/01/23 (f)		5,200,000		5,063,047
Constellation Brands, Inc. 3.209%, 3M LIBOR + 0.700%, 11/15/21 (b)		1,895,000		1,872,301
Keurig Dr Pepper, Inc. 3.551%, 05/25/21 (144A)		840,000		838,696
4.057%, 05/25/23 (144A)		1,227,000		1,221,933
PepsiCo, Inc. 4.000%, 05/02/47 (f)		1,360,000		1,331,492
				17,274,494
Biotechnology—0.4%
Amgen, Inc. 4.400%, 05/01/45		1,323,000		1,240,506

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Biotechnology—(Continued)
Baxalta, Inc. 5.250%, 06/23/45		268,000	$	271,991
Celgene Corp. 3.250%, 08/15/22		1,160,000		1,138,811
3.250%, 02/20/23		1,910,000		1,864,917
3.550%, 08/15/22		1,130,000		1,117,532
3.950%, 10/15/20		240,000		242,537
Gilead Sciences, Inc. 2.500%, 09/01/23		1,047,000		1,009,965
3.700%, 04/01/24		2,205,000		2,201,159
4.000%, 09/01/36		755,000		689,021
4.150%, 03/01/47		862,000		795,148
4.500%, 02/01/45		547,000		526,753
4.600%, 09/01/35		419,000		423,466
5.650%, 12/01/41		1,190,000		1,316,231
				12,838,037
Building Materials—0.0%
Johnson Controls International plc 5.125%, 09/14/45		500,000		497,486
LafargeHolcim Finance U.S. LLC 4.750%, 09/22/46 (144A)		1,290,000		1,121,746
				1,619,232
Chemicals—0.4%
Air Liquide Finance S.A. 2.500%, 09/27/26 (144A)		560,000		515,039
Cydsa S.A.B. de C.V. 6.250%, 10/04/27 (144A)		840,000		754,950
Dow Chemical Co. (The) 4.375%, 11/15/42		280,000		246,018
4.625%, 10/01/44		755,000		683,783
9.000%, 04/01/21		1,125,000		1,247,447
DowDuPont, Inc. 4.493%, 11/15/25		5,270,000		5,428,313
5.419%, 11/15/48		2,880,000		2,996,103
Petkim Petrokimya Holding A/S 5.875%, 01/26/23 (144A)		526,000		477,328
SABIC Capital II B.V. 4.000%, 10/10/23 (144A)		527,000		524,365
Sherwin-Williams Co. (The)
4.000%, 12/15/42		240,000		202,043
4.500%, 06/01/47		565,000		510,185
				13,585,574
Commercial Services—0.2%
Boston University 4.061%, 10/01/48		693,000		696,175
George Washington University (The) 4.126%, 09/15/48		1,328,000		1,330,886
S&P Global, Inc. 4.000%, 06/15/25		300,000		305,604
Total System Services, Inc. 3.750%, 06/01/23		595,000		590,124
Commercial Services—(Continued)
Total System Services, Inc. 3.800%, 04/01/21		550,000		549,871
4.800%, 04/01/26		2,815,000		2,838,211
University of Notre Dame du Lac 3.394%, 02/15/48		800,000		757,232
University of Southern California 3.028%, 10/01/39		115,000		104,411
Wesleyan University 4.781%, 07/01/2116		938,000		960,997
				8,133,511
Computers—0.5%
Apple, Inc. 2.700%, 05/13/22		1,490,000		1,473,327
2.850%, 05/11/24		4,515,000		4,402,883
3.000%, 02/09/24		1,525,000		1,505,934
3.450%, 02/09/45		683,000		605,660
3.850%, 05/04/43		1,990,000		1,894,193
4.500%, 02/23/36		280,000		296,901
4.650%, 02/23/46		1,671,000		1,776,898
Dell International LLC / EMC Corp. 8.350%, 07/15/46 (144A)		326,000		353,340
DXC Technology Co. 2.875%, 03/27/20		1,279,000		1,267,781
IBM Credit LLC 3.450%, 11/30/20		1,370,000		1,376,209
International Business Machines Corp. 2.900%, 11/01/21		592,000		583,962
Seagate HDD Cayman 4.250%, 03/01/22		665,000		635,501
				16,172,589
Diversified Financial Services—0.9%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust 4.500%, 05/15/21		1,215,000		1,218,461
4.625%, 10/30/20		3,530,000		3,553,959
Air Lease Corp. 2.625%, 07/01/22		1,535,000		1,454,960
Alpha Holding S.A. de C.V. 10.000%, 12/19/22 (144A)		253,000		184,690
American Express Co. 3.700%, 11/05/21		2,175,000		2,194,444
3.700%, 08/03/23		1,295,000		1,298,664
American Express Credit Corp. 2.250%, 08/15/19		1,959,000		1,950,130
Capital One Financial Corp. 2.400%, 10/30/20		2,166,000		2,120,146
3.450%, 04/30/21		1,510,000		1,506,847
3.750%, 03/09/27		680,000		631,922
CME Group, Inc. 3.750%, 06/15/28		85,000		86,193
Credivalores-Crediservicios SAS 9.750%, 07/27/22 (144A)		655,000		569,850
Discover Financial Services 4.100%, 02/09/27		1,108,000		1,034,941

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Diversified Financial Services—(Continued)
Docuformas SAPI de C.V. 9.250%, 10/11/22 (144A)		320,000	$	283,200
GE Capital International Funding Co. 4.418%, 11/15/35		3,000,000		2,523,921
Intercontinental Exchange, Inc. 3.450%, 09/21/23		930,000		934,669
3.750%, 09/21/28		355,000		355,332
4.000%, 10/15/23		1,495,000		1,530,227
Nuveen LLC 4.000%, 11/01/28 (144A)		915,000		943,426
Synchrony Financial 2.600%, 01/15/19		1,706,000		1,705,419
2.700%, 02/03/20		1,079,000		1,060,549
Tarjeta Naranja S.A. 52.292%, BADLAR + 3.500%, 04/11/22 (144A) (b)		1,016,000		406,400
Unifin Financiera S.A.B. de C.V. 7.250%, 09/27/23 (144A)		251,000		231,166
8.875%, 5Y H15 + 6.308%, 01/29/25 (144A) (b)		384,000		316,800
Visa, Inc. 3.150%, 12/14/25		1,300,000		1,278,116
4.150%, 12/14/35		876,000		906,925
4.300%, 12/14/45		645,000		671,084
				30,952,441
Electric—2.0%
AEP Texas, Inc. 3.950%, 06/01/28 (144A)		2,490,000		2,495,202
AEP Transmission Co. LLC 4.250%, 09/15/48		1,400,000		1,412,732
AES Panama SRL 6.000%, 06/25/22 (144A)		213,000		214,331
Alabama Power Co. 3.750%, 03/01/45		190,000		175,488
4.150%, 08/15/44		240,000		235,125
4.300%, 07/15/48		1,335,000		1,339,108
Alliant Energy Finance LLC 3.750%, 06/15/23 (144A)		525,000		528,207
Ameren Illinois Co. 3.800%, 05/15/28		1,090,000		1,109,497
Baltimore Gas & Electric Co. 3.500%, 08/15/46		805,000		710,927
3.750%, 08/15/47		715,000		656,624
4.250%, 09/15/48		680,000		676,281
CenterPoint Energy Houston Electric LLC 3.550%, 08/01/42		560,000		510,131
3.950%, 03/01/48		440,000		428,147
Consumers Energy Co. 4.050%, 05/15/48		390,000		385,149
DTE Electric Co. 4.050%, 05/15/48		1,745,000		1,731,725
DTE Energy Co. 3.700%, 08/01/23		820,000		814,208
Duke Energy Carolinas LLC
3.700%, 12/01/47		715,000		650,401
3.950%, 11/15/28		1,625,000		1,665,557
Electric—(Continued)
Duke Energy Corp. 3.750%, 09/01/46		2,280,000		1,974,019
4.800%, 12/15/45		215,000		219,269
Duke Energy Florida LLC 3.800%, 07/15/28		815,000		822,123
4.200%, 07/15/48		570,000		568,384
Duke Energy Progress LLC 3.000%, 09/15/21		480,000		480,667
3.250%, 08/15/25		1,145,000		1,114,698
3.700%, 09/01/28		2,905,000		2,936,307
Electricite de France S.A. 4.500%, 09/21/28 (144A)		1,370,000		1,328,661
Emera U.S. Finance L.P. 2.150%, 06/15/19		2,058,000		2,041,181
Entergy Corp. 2.950%, 09/01/26		350,000		323,073
Entergy Louisiana LLC 4.200%, 09/01/48		1,570,000		1,551,771
5.400%, 11/01/24		405,000		445,151
Exelon Corp. 2.450%, 04/15/21		549,000		536,923
4.450%, 04/15/46		2,800,000		2,666,617
4.950%, 06/15/35		501,000		504,819
FirstEnergy Transmission LLC 4.350%, 01/15/25 (144A)		3,915,000		3,957,520
Florida Power & Light Co. 3.950%, 03/01/48		1,278,000		1,250,037
4.125%, 06/01/48		1,320,000		1,325,353
Generacion Mediterranea S.A. / Generacion Frias S.A. / Central Termica Roca S.A. 9.625%, 07/27/23 (144A) (f)		1,182,000		995,847
Genneia S.A. 8.750%, 01/20/22 (144A)		1,216,000		1,097,440
Inkia Energy, Ltd. 5.875%, 11/09/27 (144A)		349,000		323,265
Kansas City Power & Light Co. 4.200%, 03/15/48		1,350,000		1,311,239
Mid-Atlantic Interstate Transmission LLC 4.100%, 05/15/28 (144A)		575,000		571,249
MidAmerican Energy Co. 4.400%, 10/15/44		837,000		863,496
Northern States Power Co. 3.400%, 08/15/42		1,370,000		1,236,398
4.000%, 08/15/45		780,000		761,207
4.200%, 09/01/48		630,000		620,559
Ohio Power Co. 6.600%, 02/15/33		955,000		1,193,169
Oncor Electric Delivery Co. LLC 4.550%, 12/01/41		970,000		1,012,650
Orazul Energy Egenor S. en C. por A. 5.625%, 04/28/27 (144A)		549,000		485,179
Pacific Gas & Electric Co. 6.050%, 03/01/34		650,000		602,953
PacifiCorp 4.125%, 01/15/49		475,000		468,146

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Electric—(Continued)
Public Service Electric & Gas Co. 3.650%, 09/01/28		1,780,000	$	1,803,327
Southern Co. (The) 4.400%, 07/01/46		2,085,000		1,919,678
Southwestern Electric Power Co. 4.100%, 09/15/28		910,000		912,728
Stoneway Capital Corp. 10.000%, 03/01/27 (144A)		1,630,440		1,465,358
10.000%, 03/01/27		635,024		570,727
Tampa Electric Co. 2.600%, 09/15/22		700,000		678,583
4.300%, 06/15/48		260,000		248,807
4.450%, 06/15/49		680,000		663,879
Trans-Allegheny Interstate Line Co. 3.850%, 06/01/25 (144A)		1,975,000		1,967,512
Virginia Electric & Power Co. 2.750%, 03/15/23		2,130,000		2,077,323
3.500%, 03/15/27		2,495,000		2,458,486
4.000%, 01/15/43		1,650,000		1,567,372
4.000%, 11/15/46		1,050,000		994,597
4.200%, 05/15/45		250,000		242,850
4.450%, 02/15/44		287,000		288,981
4.600%, 12/01/48		160,000		167,122
WEC Energy Group, Inc. 3.375%, 06/15/21		390,000		389,740
				69,745,280
Electronics—0.1%
Corning, Inc. 4.375%, 11/15/57		2,760,000		2,309,604
Honeywell International, Inc. 3.812%, 11/21/47		495,000		470,611
Tyco Electronics Group S.A. 3.125%, 08/15/27		645,000		596,967
3.450%, 08/01/24		300,000		291,980
				3,669,162
Engineering & Construction—0.0%
Aeropuerto Internacional de Tocumen S.A. 5.625%, 05/18/36 (144A)		276,000		280,485
Aeropuertos Argentina S.A. 6.875%, 02/01/27 (144A)		539,000		497,228
Aeropuertos Dominicanos Siglo S.A. 6.750%, 03/30/29 (144A)		279,000		268,014
Mexico City Airport Trust 4.250%, 10/31/26 (144A)		505,000		450,081
				1,495,808
Environmental Control—0.1%
Republic Services, Inc. 2.900%, 07/01/26		750,000		707,792
3.950%, 05/15/28		955,000		956,198
4.750%, 05/15/23		510,000		533,804
Environmental Control—(Continued)
Waste Management, Inc. 3.900%, 03/01/35		967,000		939,482
				3,137,276
Food—0.3%
Campbell Soup Co. 8.875%, 05/01/21		680,000		751,630
Conagra Brands, Inc. 3.800%, 10/22/21		455,000		455,140
General Mills, Inc. 3.200%, 04/16/21		890,000		885,313
4.000%, 04/17/25		983,000		967,831
Kroger Co. (The) 2.650%, 10/15/26		2,415,000		2,149,638
MARB BondCo plc 6.875%, 01/19/25 (144A)		1,529,000		1,417,016
Marfrig Holdings Europe B.V. 8.000%, 06/08/23 (144A)		512,000		513,280
Tyson Foods, Inc.
3.550%, 06/02/27 (f)		1,420,000		1,323,190
3.900%, 09/28/23		225,000		224,672
3.950%, 08/15/24		1,745,000		1,734,750
5.100%, 09/28/48		200,000		192,174
				10,614,634
Forest Products & Paper—0.1%
Eldorado Intl. Finance GmbH 8.625%, 06/16/21 (144A)		609,000		631,076
Georgia-Pacific LLC 3.734%, 07/15/23 (144A)		800,000		807,566
5.400%, 11/01/20 (144A)		935,000		968,639
7.375%, 12/01/25		935,000		1,127,970
Klabin Finance S.A. 4.875%, 09/19/27 (144A)		1,024,000		929,280
Suzano Austria GmbH 6.000%, 01/15/29 (144A)		881,000		899,061
				5,363,592
Gas—0.1%
NiSource, Inc. 2.650%, 11/17/22		240,000		229,759
3.490%, 05/15/27		1,825,000		1,742,471
				1,972,230
Healthcare-Products—0.7%
Abbott Laboratories 3.400%, 11/30/23		350,000		348,909
3.750%, 11/30/26		3,109,000		3,072,066
Baxter International, Inc. 1.700%, 08/15/21		140,000		134,310
Becton Dickinson & Co. 2.133%, 06/06/19		1,630,000		1,620,510
2.675%, 12/15/19		2,345,000		2,322,737
2.894%, 06/06/22		3,240,000		3,137,853
3.300%, 03/01/23		1,420,000		1,395,020

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Healthcare-Products—(Continued)
Becton Dickinson & Co. 4.685%, 12/15/44		367,000	$	343,941
Covidien International Finance S.A. 2.950%, 06/15/23		870,000		851,760
Edwards Lifesciences Corp. 4.300%, 06/15/28		485,000		490,642
Medtronic, Inc. 3.500%, 03/15/25		1,650,000		1,644,192
4.375%, 03/15/35		3,410,000		3,494,877
Thermo Fisher Scientific, Inc. 2.950%, 09/19/26		2,425,000		2,239,089
3.000%, 04/15/23		860,000		836,634
4.150%, 02/01/24		1,995,000		2,020,756
4.500%, 03/01/21		1,720,000		1,757,851
				25,711,147
Healthcare-Services—0.7%
Aetna, Inc.
4.125%, 11/15/42		475,000		411,724
4.500%, 05/15/42		881,000		818,880
4.750%, 03/15/44		690,000		659,175
AHS Hospital Corp. 5.024%, 07/01/45		490,000		544,993
Anthem, Inc. 3.500%, 08/15/24		290,000		284,432
4.101%, 03/01/28		905,000		887,547
Baylor Scott & White Holdings 4.185%, 11/15/45		775,000		764,990
Catholic Health Initiatives 4.350%, 11/01/42		550,000		498,119
Cigna Holding Co. 3.250%, 04/15/25		2,382,000		2,267,412
Dignity Health 2.637%, 11/01/19		1,319,000		1,311,314
Kaiser Foundation Hospitals
3.500%, 04/01/22		1,288,000		1,309,419
4.150%, 05/01/47		383,000		378,830
Laboratory Corp. of America Holdings 2.625%, 02/01/20		1,583,000		1,571,819
Mercy Healthcare System 4.302%, 07/01/28		505,000		515,449
Montefiore Obligated Group 5.246%, 11/01/48		1,089,000		1,055,625
Ochsner Clinic Foundation 5.897%, 05/15/45		638,000		773,444
PeaceHealth Obligated Group 4.787%, 11/15/48		894,000		946,445
Providence St Joseph Health Obligated Group 3.930%, 10/01/48		887,000		846,182
Southern Baptist Hospital of Florida, Inc. 4.857%, 07/15/45		650,000		708,357
SSM Health Care Corp. 3.688%, 06/01/23		953,000		961,686
Sutter Health 3.695%, 08/15/28		1,045,000		1,048,509
Healthcare-Services—(Continued)
Trinity Health Corp. 4.125%, 12/01/45		502,000		477,640
UnitedHealth Group, Inc. 3.100%, 03/15/26		590,000		569,684
3.700%, 12/15/25		1,055,000		1,066,035
3.750%, 07/15/25		1,730,000		1,752,011
3.750%, 10/15/47		1,050,000		962,371
3.850%, 06/15/28		450,000		455,185
4.200%, 01/15/47		790,000		786,102
4.450%, 12/15/48		335,000		345,332
4.625%, 07/15/35		377,000		400,575
				25,379,286
Holding Companies-Diversified—0.0%
Grupo KUO S.A.B. de C.V. 5.750%, 07/07/27 (144A)		1,068,000		968,142
Household Products/Wares—0.0%
Controladora Mabe S.A. de C.V. 5.600%, 10/23/28 (144A)		843,000		791,156
Insurance—0.5%
Ambac Assurance Corp. 5.100%, 06/07/20 (144A)		162,922		216,686
Ambac LSNI LLC 7.803%, 3M LIBOR + 5.000%, 02/12/23 (144A) (b)		1,002,619		1,003,873
Aon Corp. 4.500%, 12/15/28		2,175,000		2,203,119
Aon plc 4.750%, 05/15/45		485,000		476,517
AXA Equitable Holdings, Inc. 3.900%, 04/20/23 (144A)		260,000		256,763
5.000%, 04/20/48 (144A)		780,000		684,439
Hartford Financial Services Group, Inc. (The) 4.300%, 04/15/43		325,000		302,312
Marsh & McLennan Cos., Inc. 3.500%, 06/03/24		2,605,000		2,565,825
3.500%, 03/10/25		880,000		864,849
3.750%, 03/14/26		94,000		92,936
4.050%, 10/15/23		680,000		689,897
4.200%, 03/01/48 (f)		1,215,000		1,105,092
4.350%, 01/30/47		191,000		178,365
Principal Financial Group, Inc. 4.300%, 11/15/46		360,000		331,687
Prudential Financial, Inc. 3.878%, 03/27/28		2,120,000		2,131,756
Travelers Cos., Inc. (The) 4.600%, 08/01/43		945,000		981,106
Trinity Acquisition plc 4.400%, 03/15/26		515,000		512,008
Willis North America, Inc. 3.600%, 05/15/24		2,565,000		2,504,182
				17,101,412

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Internet—0.1%
Alibaba Group Holding, Ltd. 3.600%, 11/28/24 (f)		1,400,000	$	1,369,364
Baidu, Inc. 4.375%, 05/14/24		915,000		922,527
				2,291,891
Iron/Steel—0.1%
Nucor Corp. 5.200%, 08/01/43		585,000		621,169
Samarco Mineracao S.A. 4.125%, 11/01/22		602,000		454,510
Steel Dynamics, Inc. 5.125%, 10/01/21		1,086,000		1,084,642
				2,160,321
Media—1.7%
Cablevision S.A. 6.500%, 06/15/21 (144A)		227,000		218,771
CBS Corp. 2.300%, 08/15/19		2,077,000		2,061,626
Charter Communications Operating LLC / Charter Communications Operating Capital Corp. 3.579%, 07/23/20		6,710,000		6,701,670
4.500%, 02/01/24		2,115,000		2,111,645
4.908%, 07/23/25		2,902,000		2,884,317
5.750%, 04/01/48		1,940,000		1,818,841
6.384%, 10/23/35		3,898,000		4,004,683
Comcast Corp. 3.150%, 03/01/26		2,980,000		2,852,719
3.200%, 07/15/36		4,806,000		4,138,874
3.300%, 10/01/20		4,085,000		4,099,872
3.375%, 02/15/25		290,000		284,156
3.400%, 07/15/46		2,495,000		2,070,352
4.150%, 10/15/28		1,405,000		1,427,557
4.250%, 10/15/30		1,135,000		1,148,649
4.400%, 08/15/35		1,001,000		969,358
4.950%, 10/15/58		785,000		799,303
COX Communications, Inc. 3.150%, 08/15/24 (144A)		4,170,000		4,011,248
Discovery Communications LLC 3.800%, 03/13/24		1,616,000		1,576,350
3.950%, 06/15/25 (144A)		1,230,000		1,182,021
4.375%, 06/15/21		1,370,000		1,394,095
5.200%, 09/20/47		435,000		402,189
NBCUniversal Enterprise, Inc. 5.250%, 03/19/21 (144A) (f)		2,305,000		2,333,813
NBCUniversal Media LLC 4.450%, 01/15/43		915,000		883,127
Time Warner Cable LLC 4.125%, 02/15/21		2,130,000		2,139,407
4.500%, 09/15/42		161,000		129,581
5.000%, 02/01/20		1,055,000		1,069,674
5.500%, 09/01/41		588,000		520,276
Viacom, Inc. 6.875%, 04/30/36		850,000		913,022
Media—(Continued)
Warner Media LLC 2.100%, 06/01/19		3,352,000		3,336,421
3.600%, 07/15/25		820,000		776,988
4.650%, 06/01/44		440,000		385,561
4.850%, 07/15/45		1,980,000		1,771,682
				60,417,848
Mining—0.2%
Anglo American Capital plc 3.625%, 09/11/24 (144A)		2,075,000		1,958,573
Barrick Gold Corp. 5.250%, 04/01/42		720,000		720,419
BHP Billiton Finance USA, Ltd. 5.000%, 09/30/43		760,000		828,132
Largo Resources, Ltd. 9.250%, 06/01/21 (144A)		96,000		100,920
Newmont Mining Corp. 3.500%, 03/15/22		2,740,000		2,711,283
				6,319,327
Miscellaneous Manufacturing—0.0%
Eaton Corp. 2.750%, 11/02/22		1,285,000		1,249,715
General Electric Co. 4.500%, 03/11/44		599,000		489,128
				1,738,843
Oil & Gas—1.8%
Anadarko Petroleum Corp. Zero Coupon, 10/10/36 (m)		2,000,000		835,379
6.200%, 03/15/40		1,690,000		1,750,668
Apache Corp. 2.625%, 01/15/23		985,000		930,382
4.750%, 04/15/43 (f)		2,090,000		1,794,363
5.100%, 09/01/40		720,000		646,181
BP Capital Markets America, Inc. 3.790%, 02/06/24		1,190,000		1,202,758
Cimarex Energy Co. 3.900%, 05/15/27 (f)		1,790,000		1,661,923
4.375%, 06/01/24		2,595,000		2,580,367
Concho Resources, Inc. 3.750%, 10/01/27		3,130,000		2,948,158
4.375%, 01/15/25		1,535,000		1,516,747
Continental Resources, Inc. 3.800%, 06/01/24		1,515,000		1,434,100
4.500%, 04/15/23 (f)		5,340,000		5,255,202
5.000%, 09/15/22		3,056,000		3,034,165
Devon Energy Corp. 4.000%, 07/15/21		885,000		885,840
EOG Resources, Inc. 3.900%, 04/01/35		275,000		259,900
4.150%, 01/15/26		537,000		551,417
Exxon Mobil Corp. 1.819%, 03/15/19		3,300,000		3,293,920

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Oil & Gas—(Continued)
Frontera Energy Corp. 9.700%, 06/25/23 (144A)		603,000	$	594,709
Hess Corp. 5.800%, 04/01/47		740,000		665,432
Marathon Oil Corp. 2.700%, 06/01/20		2,850,000		2,807,470
Marathon Petroleum Corp. 4.750%, 12/15/23 (144A)		4,910,000		5,037,806
5.125%, 03/01/21		3,285,000		3,380,260
5.850%, 12/15/45		660,000		652,393
Odebrecht Drilling Norbe VIII/IX, Ltd. 6.350%, 12/01/21 (144A)		375,720		360,879
Odebrecht Offshore Drilling Finance, Ltd. 6.720%, 12/01/22 (144A)		359,806		334,169
7.720%, PIK, 12/01/26 (144A) (h)		12,144		3,157
Petrobras Global Finance B.V. 5.999%, 01/27/28		877,000		825,704
7.375%, 01/17/27		1,641,000		1,686,127
8.750%, 05/23/26		877,000		983,555
Pioneer Natural Resources Co. 3.950%, 07/15/22		270,000		270,789
4.450%, 01/15/26		3,373,000		3,407,095
Puma International Financing S.A. 5.000%, 01/24/26 (144A)		806,000		624,715
5.125%, 10/06/24 (144A)		200,000		159,676
Resolute Energy Corp. 8.500%, 05/01/20		2,260,000		2,226,100
Shell International Finance B.V. 2.250%, 01/06/23		2,775,000		2,668,524
3.250%, 05/11/25		760,000		749,724
3.625%, 08/21/42		640,000		580,941
4.125%, 05/11/35		421,000		421,972
Tecpetrol S.A. 4.875%, 12/12/22 (144A)		333,000		306,360
Valero Energy Corp. 3.400%, 09/15/26		939,000		860,468
3.650%, 03/15/25		1,471,000		1,404,365
YPF S.A.
8.750%, 04/04/24 (144A)		345,000		324,300
8.750%, 04/04/24		501,000		470,940
				62,389,100
Oil & Gas Services—0.2%
Halliburton Co. 3.800%, 11/15/25 (f)		5,625,000		5,455,134
5.000%, 11/15/45 (f)		234,000		231,705
Odebrecht Oil & Gas Finance, Ltd. Zero Coupon, 02/18/19 (144A) (m)		63,301		652
Schlumberger Holdings Corp. 3.000%, 12/21/20 (144A)		1,832,000		1,815,747
				7,503,238
Packaging & Containers—0.1%
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 5.750%, 10/15/20		2,190,183		2,184,708
Pharmaceuticals—2.0%
AbbVie, Inc. 2.300%, 05/14/21	650,000		634,748
3.600%, 05/14/25		1,595,000		1,530,571
3.750%, 11/14/23		1,170,000		1,164,009
4.250%, 11/14/28		1,035,000		1,005,401
4.400%, 11/06/42		880,000		777,993
4.500%, 05/14/35		2,365,000		2,190,058
Allergan Finance LLC 3.250%, 10/01/22		1,015,000		992,334
Allergan Funding SCS 3.450%, 03/15/22		3,840,000		3,781,083
3.800%, 03/15/25		9,838,000		9,608,191
Bayer U.S. Finance II LLC 3.375%, 07/15/24 (144A)		285,000		271,092
3.600%, 07/15/42 (144A)		570,000		421,076
Cigna Corp. 3.200%, 09/17/20 (144A)		7,505,000		7,472,812
CVS Health Corp. 3.700%, 03/09/23		2,395,000		2,369,225
4.000%, 12/05/23		2,205,000		2,211,160
4.100%, 03/25/25		2,945,000		2,919,154
4.780%, 03/25/38		740,000		709,883
5.050%, 03/25/48		2,250,000		2,191,280
5.125%, 07/20/45		5,110,000		4,980,400
GlaxoSmithKline Capital plc 2.850%, 05/08/22		2,930,000		2,893,277
GlaxoSmithKline Capital, Inc. 3.875%, 05/15/28		840,000		854,144
Johnson & Johnson 2.450%, 03/01/26		275,000		258,373
2.625%, 01/15/25		1,455,000		1,401,498
3.625%, 03/03/37		305,000		293,710
Merck & Co., Inc. 3.600%, 09/15/42		245,000		231,741
Shire Acquisitions Investments Ireland DAC 1.900%, 09/23/19		6,480,000		6,389,291
2.400%, 09/23/21		695,000		672,025
3.200%, 09/23/26		2,784,000		2,520,623
Takeda Pharmaceutical Co., Ltd. 3.800%, 11/26/20 (144A)		1,360,000		1,367,933
4.400%, 11/26/23 (144A)		2,395,000		2,421,075
5.000%, 11/26/28 (144A) (f)		2,170,000		2,217,672
Wyeth LLC 5.950%, 04/01/37		1,685,000		2,030,522
6.450%, 02/01/24		275,000		314,869
				69,097,223

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Pipelines—2.4%
Andeavor Logistics L.P. / Tesoro Logistics Finance Corp. 4.250%, 12/01/27		535,000	$	505,331
5.200%, 12/01/47		1,240,000		1,117,746
5.250%, 01/15/25		100,000		101,825
5.500%, 10/15/19		2,260,000		2,279,056
Buckeye Partners L.P. 4.875%, 02/01/21		3,363,000		3,400,256
Enbridge, Inc. 2.900%, 07/15/22		2,120,000		2,051,554
3.700%, 07/15/27 (f)		1,690,000		1,601,576
5.500%, 3M LIBOR + 3.418%, 07/15/77 (b)		1,510,000		1,280,069
Energy Transfer L.P. 4.250%, 03/15/23		4,600,000		4,427,500
5.875%, 01/15/24		2,789,000		2,847,234
Energy Transfer Operating L.P. 4.900%, 02/01/24		330,000		334,000
5.200%, 02/01/22		550,000		564,803
6.500%, 02/01/42		2,650,000		2,647,803
Energy Transfer Partners L.P. / Regency Energy Finance Corp. 4.500%, 11/01/23		2,740,000		2,740,891
5.000%, 10/01/22 (f)		630,000		642,906
5.750%, 09/01/20		190,000		194,974
5.875%, 03/01/22		3,395,000		3,532,251
Enterprise Products Operating LLC 4.450%, 02/15/43		1,429,000		1,298,376
4.800%, 02/01/49		215,000		209,151
5.100%, 02/15/45		501,000		503,452
Kinder Morgan Energy Partners L.P. 5.000%, 03/01/43		360,000		327,027
5.800%, 03/15/35		585,000		599,018
6.375%, 03/01/41		260,000		276,200
Kinder Morgan, Inc. 3.050%, 12/01/19		2,040,000		2,028,270
3.150%, 01/15/23		3,310,000		3,211,409
5.050%, 02/15/46		3,185,000		2,912,858
5.550%, 06/01/45		170,000		168,567
MPLX L.P. 4.875%, 12/01/24		3,835,000		3,903,477
4.875%, 06/01/25		1,101,000		1,110,136
5.200%, 03/01/47		754,000		694,924
Northwest Pipeline LLC 4.000%, 04/01/27		2,735,000		2,659,777
Plains All American Pipeline L.P. / PAA Finance Corp. 3.650%, 06/01/22		280,000		274,871
Sabine Pass Liquefaction LLC 5.625%, 04/15/23		3,230,000		3,402,882
5.625%, 03/01/25		3,475,000		3,610,061
5.750%, 05/15/24		3,380,000		3,542,597
5.875%, 06/30/26		2,681,000		2,839,928
Spectra Energy Partners L.P. 4.500%, 03/15/45		2,060,000		1,865,130
Sunoco Logistics Partners Operations L.P. 5.400%, 10/01/47		2,610,000		2,341,027
Texas Eastern Transmission L.P. 4.150%, 01/15/48 (144A)		625,000		557,059
Pipelines—(Continued)
Texas Eastern Transmission L.P. 3.500%, 01/15/28 (144A)		1,240,000		1,171,414
TransCanada PipeLines, Ltd. 4.250%, 05/15/28		940,000		931,478
4.875%, 01/15/26		2,035,000		2,105,916
6.100%, 06/01/40		1,235,000		1,370,593
Transcontinental Gas Pipe Line Co. LLC 4.000%, 03/15/28		1,750,000		1,712,238
4.600%, 03/15/48		390,000		365,158
7.850%, 02/01/26		895,000		1,082,415
Transportadora de Gas Internacional S.A. ESP 5.550%, 11/01/28 (144A)		427,000		431,804
Williams Cos., Inc. (The) 3.700%, 01/15/23		1,070,000		1,043,738
4.000%, 11/15/21		675,000		677,597
4.000%, 09/15/25		1,765,000		1,704,990
4.125%, 11/15/20		1,500,000		1,511,655
4.550%, 06/24/24		680,000		686,555
5.750%, 06/24/44		1,480,000		1,489,183
7.500%, 01/15/31		645,000		770,445
7.875%, 09/01/21		390,000		425,885
				86,087,036
Real Estate Investment Trusts—0.3%
American Tower Corp. 3.000%, 06/15/23		1,520,000		1,462,338
3.300%, 02/15/21		1,342,000		1,334,257
3.450%, 09/15/21		500,000		499,885
CC Holdings GS V LLC / Crown Castle GS III Corp. 3.849%, 04/15/23		850,000		841,695
Crown Castle International Corp. 2.250%, 09/01/21		2,481,000		2,398,578
3.200%, 09/01/24		3,660,000		3,463,999
3.400%, 02/15/21		668,000		667,744
Trust F/1401 6.950%, 01/30/44		280,000		264,603
				10,933,099
Retail—0.5%
Home Depot, Inc. (The) 3.500%, 09/15/56		570,000		480,092
3.900%, 12/06/28		710,000		727,679
5.875%, 12/16/36		405,000		485,536
Lowe’s Cos., Inc. 4.375%, 09/15/45		1,405,000		1,263,325
McDonald’s Corp. 3.350%, 04/01/23		1,240,000		1,233,657
3.700%, 01/30/26		1,390,000		1,363,260
3.700%, 02/15/42		575,000		497,707
4.450%, 03/01/47		765,000		732,433
4.450%, 09/01/48		255,000		242,922
4.700%, 12/09/35		1,035,000		1,040,611
4.875%, 12/09/45		930,000		940,327
Walgreens Boots Alliance, Inc. 3.450%, 06/01/26		4,090,000		3,845,901

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Retail—(Continued)
Walgreens Boots Alliance, Inc. 3.800%, 11/18/24		1,870,000	$	1,840,158
4.800%, 11/18/44		114,000		104,456
Walmart, Inc. 3.550%, 06/26/25		1,370,000		1,385,718
4.050%, 06/29/48		650,000		648,624
				16,832,406
Semiconductors—1.1%
Analog Devices, Inc. 2.500%, 12/05/21		1,895,000		1,849,720
3.500%, 12/05/26		835,000		799,609
3.900%, 12/15/25		347,000		340,685
5.300%, 12/15/45		593,000		624,599
Applied Materials, Inc. 3.900%, 10/01/25		2,110,000		2,124,259
4.350%, 04/01/47 (f)		977,000		958,952
5.100%, 10/01/35		1,139,000		1,213,339
Broadcom Corp. / Broadcom Cayman Finance, Ltd. 2.375%, 01/15/20		1,782,000		1,759,551
3.000%, 01/15/22		10,267,000		9,873,385
Lam Research Corp. 2.750%, 03/15/20		1,335,000		1,322,287
2.800%, 06/15/21		660,000		652,624
NVIDIA Corp. 3.200%, 09/16/26		1,590,000		1,509,665
NXP B.V. / NXP Funding LLC 3.875%, 09/01/22 (144A)		2,956,000		2,837,760
4.125%, 06/01/21 (144A)		3,755,000		3,708,062
4.625%, 06/15/22 (144A)		715,000		704,275
4.875%, 03/01/24 (144A)		1,085,000		1,089,763
QUALCOMM, Inc. 2.600%, 01/30/23		2,160,000		2,078,499
2.900%, 05/20/24		945,000		899,760
4.300%, 05/20/47		2,255,000		2,005,539
4.800%, 05/20/45		841,000		802,088
Texas Instruments, Inc. 2.250%, 05/01/23		550,000		528,505
4.150%, 05/15/48		660,000		659,552
				38,342,478
Software—0.8%
Autodesk, Inc. 3.500%, 06/15/27		2,130,000		1,981,847
Fidelity National Information Services, Inc. 3.000%, 08/15/26		4,510,000		4,151,221
4.500%, 08/15/46		15,000		13,660
4.750%, 05/15/48		1,560,000		1,452,063
Fiserv, Inc. 3.850%, 06/01/25		440,000		436,273
4.200%, 10/01/28		1,240,000		1,238,283
Microsoft Corp. 3.450%, 08/08/36		4,100,000		3,884,425
3.500%, 02/12/35		1,449,000		1,384,418
3.700%, 08/08/46		4,105,000		3,951,818
Software—(Continued)
Oracle Corp. 2.400%, 09/15/23		510,000		489,380
2.500%, 10/15/22		235,000		228,703
2.650%, 07/15/26		2,280,000		2,114,129
3.250%, 11/15/27		489,000		471,913
3.400%, 07/08/24		1,130,000		1,127,669
3.900%, 05/15/35		1,422,000		1,362,606
4.000%, 07/15/46		1,364,000		1,274,552
4.000%, 11/15/47		595,000		554,501
VMware, Inc. 2.300%, 08/21/20		1,729,000		1,693,190
				27,810,651
Sovereign—0.0%
Oman Sovereign Sukuk SAOC 5.932%, 10/31/25 (144A)		1,437,000		1,365,374
Telecommunications—2.0%
AT&T, Inc. 3.400%, 05/15/25		615,000		578,109
4.125%, 02/17/26		385,000		376,158
4.300%, 02/15/30		8,555,000		8,089,837
4.350%, 06/15/45 (f)		4,340,000		3,672,332
5.150%, 02/15/50		2,080,000		1,929,464
5.250%, 03/01/37		1,953,000		1,919,875
Axtel S.A.B. de CV 6.375%, 11/14/24		200,000		189,698
6.375%, 11/14/24 (144A)		920,000		872,611
Cisco Systems, Inc. 2.950%, 02/28/26		605,000		577,129
Deutsche Telekom International Finance B.V. 4.375%, 06/21/28 (144A)		1,100,000		1,083,726
Digicel Group, Ltd. 7.125%, 04/01/22 (144A)		386,000		179,490
Juniper Networks, Inc. 3.300%, 06/15/20		1,478,000		1,472,244
Oi S.A. 10.000%, 4.000% PIK, 07/27/25 (h)		828,000		818,685
Rogers Communications, Inc. 5.000%, 03/15/44		214,000		222,819
Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC 3.360%, 09/20/21 (144A)		2,527,938		2,496,338
4.738%, 03/20/25 (144A)		9,605,000		9,424,906
Telefonica Emisiones S.A.U. 4.665%, 03/06/38		1,895,000		1,716,051
TELUS Corp. 4.600%, 11/16/48		235,000		234,649
Verizon Communications, Inc. 3.203%, 3M LIBOR + 0.550%, 05/22/20 (b)		4,870,000		4,859,366
4.125%, 08/15/46		1,160,000		1,024,856
4.329%, 09/21/28		11,893,000		11,949,240
4.400%, 11/01/34		760,000		733,209
4.500%, 08/10/33		3,260,000		3,220,567
5.500%, 03/16/47 (f)		4,200,000		4,472,151

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Telecommunications—(Continued)
Vodafone Group plc 3.750%, 01/16/24		4,154,000	$	4,094,034
4.125%, 05/30/25		1,250,000		1,235,402
5.250%, 05/30/48 (f)		2,985,000		2,806,011
				70,248,957
Transportation—0.6%
Burlington Northern Santa Fe LLC 4.125%, 06/15/47		970,000		940,111
4.150%, 04/01/45		490,000		475,728
4.150%, 12/15/48		105,000		102,408
4.700%, 09/01/45		665,000		696,280
6.150%, 05/01/37		234,000		285,343
CSX Corp. 4.250%, 03/15/29		1,100,000		1,117,545
4.250%, 11/01/66		635,000		549,855
4.750%, 11/15/48		560,000		568,025
FedEx Corp. 3.875%, 08/01/42		925,000		769,030
3.900%, 02/01/35		1,975,000		1,789,923
4.050%, 02/15/48		2,470,000		2,071,897
4.900%, 01/15/34		190,000		194,363
Hidrovias International Finance S.a.r.l. 5.950%, 01/24/25 (144A)		588,000		535,086
Norfolk Southern Corp. 2.900%, 06/15/26		1,310,000		1,232,514
3.650%, 08/01/25		1,125,000		1,131,373
4.050%, 08/15/52 (f)		630,000		563,510
Rumo Luxembourg S.a.r.l. 5.875%, 01/18/25 (144A)		679,000		649,301
7.375%, 02/09/24 (144A)		604,000		629,610
Ryder System, Inc. 3.750%, 06/09/23		135,000		134,162
Union Pacific Corp. 3.375%, 02/01/35		1,148,000		1,005,757
3.600%, 09/15/37		1,475,000		1,319,781
3.750%, 07/15/25		1,070,000		1,080,629
3.799%, 10/01/51		310,000		263,335
3.875%, 02/01/55		1,196,000		1,022,819
Union Pacific Railroad Co. Pass-Through Trust 3.227%, 05/14/26		735,629		722,495
				19,850,880
Trucking & Leasing—0.1%
GATX Corp. 2.600%, 03/30/20 (f)		1,747,000		1,729,790
3.850%, 03/30/27		650,000		617,936
Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.400%, 11/15/26 (144A)		2,690,000		2,515,320
				4,863,046
Total Corporate Bonds & Notes (Cost $1,289,307,054)				1,261,475,089
Asset-Backed Securities—10.7%
Security Description	Principal Amount*		Value
Asset-Backed - Home Equity—1.0%
ACE Securities Corp. Home Equity Loan Trust 2.636%, 1M LIBOR + 0.130%, 05/25/37 (b)		1,181,953		339,951
Bayview Financial Revolving Asset Trust 3.506%, 1M LIBOR + 1.000%, 05/28/39 (144A) (b)		7,356,591		6,345,059
3.506%, 1M LIBOR + 1.000%, 12/28/40 (144A) (b)		498,533		483,505
Bear Stearns Asset-Backed Securities Trust 2.856%, 1M LIBOR + 0.350%, 04/25/37 (b)		2,569,757		2,013,321
3.515%, 1M LIBOR + 1.200%, 01/25/36 (b)		78,041		77,614
4.231%, 1M LIBOR + 1.725%, 08/25/34 (b)		89,088		88,358
Citigroup Mortgage Loan Trust 2.706%, 1M LIBOR + 0.200%, 05/25/37 (b)		2,678,059		1,980,085
2.756%, 1M LIBOR + 0.250%, 08/25/36 (b)		1,810,000		1,767,341
2.776%, 1M LIBOR + 0.270%, 05/25/37 (b)		1,216,491		907,188
Countrywide Asset-Backed Certificates 2.826%, 1M LIBOR + 0.320%, 10/25/36 (b)		1,260,766		1,195,783
Countrywide Home Equity Loan Trust
5.842%, 06/25/35		53,349		90,821
6.155%, 06/25/35		408,162		435,669
Home Equity Mortgage Loan Asset-Backed Trust 4.531%, 1M LIBOR + 2.025%, 07/25/34 (b)		259,397		258,325
Home Equity Mortgage Trust 5.867%, 07/25/36		734,570		244,539
Home Loan Mortgage Loan Trust 3.175%, 1M LIBOR + 0.720%, 04/15/36 (b)		886,947		813,357
Irwin Home Equity Loan Trust 6.530%, 09/25/37 (144A)		242,043		234,996
MASTR Asset-Backed Securities Trust 2.656%, 1M LIBOR + 0.150%, 06/25/36 (b)		954,222		517,936
2.766%, 1M LIBOR + 0.260%, 06/25/36 (144A) (b)		623,424		485,430
2.786%, 1M LIBOR + 0.280%, 05/25/37 (b)		621,846		524,609
Mill City Mortgage Trust 1.000%, 06/01/57 (144A)		3,560,000		569,600
4.000%, 06/01/57 (144A)		2,063,928		2,026,777
Morgan Stanley ABS Capital I, Inc. Trust 2.636%, 1M LIBOR + 0.130%, 11/25/36 (b)		4,754,485		2,829,354
Nationstar Home Equity Loan Trust 2.686%, 1M LIBOR + 0.180%, 06/25/37 (b)		107,940		107,183
Option One Mortgage Loan Trust 2.716%, 1M LIBOR + 0.210%, 03/25/37 (b)		930,000		608,251
5.820%, 03/25/37		4,505,907		4,412,367
5.866%, 01/25/37		2,429,205		2,271,721
Securitized Asset Backed Receivables LLC Trust 2.696%, 1M LIBOR + 0.190%, 11/25/36 (144A) (b)		1,030,960		606,642
Security National Mortgage Loan Trust 2.856%, 1M LIBOR + 0.350%, 04/25/37 (144A) (b)		311,673		306,242
WaMu Asset-Backed Certificates WaMu Trust 2.756%, 1M LIBOR + 0.250%, 04/25/37 (b)		3,284,847		1,686,129
2.866%, 1M LIBOR + 0.360%, 04/25/37 (b)		349,015		181,250
Yale Mortgage Loan Trust 2.906%, 1M LIBOR + 0.400%, 06/25/37 (144A) (b)		892,580		367,321
				34,776,724
Asset-Backed - Manufactured Housing—0.5%
Bank of America Manufactured Housing Contract Trust 7.070%, 02/10/22 (b)		470,000		393,169
7.930%, 12/10/25 (b)		4,000,000		2,594,818

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Manufactured Housing—(Continued)
BCMSC Trust 7.575%, 06/15/30 (b)		1,270,292	$	412,468
7.830%, 06/15/30 (b)		1,178,847		395,661
8.290%, 06/15/30 (b)		2,018,917		717,426
Conseco Finance Corp. 6.280%, 09/01/30		470,988		497,617
6.830%, 04/01/30 (b)		140,717		125,436
6.980%, 09/01/30 (b)		1,051,501		900,261
7.500%, 03/01/30 (b)		468,692		323,770
7.860%, 03/01/30 (b)		641,007		457,328
Conseco Finance Securitizations Corp. 7.960%, 05/01/31		970,358		565,424
7.970%, 05/01/32		2,293,008		1,002,403
8.060%, 09/01/29 (b)		655,478		305,054
8.200%, 05/01/31		1,773,107		1,061,299
Credit Suisse First Boston Mortgage Securities Corp. 8.100%, 09/25/31 (b)		720,000		761,393
Credit-Based Asset Servicing & Securitization LLC 6.250%, 10/25/36 (144A)		344,000		344,799
Greenpoint Manufactured Housing 8.290%, 12/15/29 (b)		440,000		465,893
9.230%, 12/15/29 (b)		532,234		434,572
Lehman ABS Manufactured Housing Contract Trust 6.630%, 04/15/40 (b)		2,430,000		2,545,185
Oakwood Mortgage Investors, Inc. 6.930%, 09/15/31 (b)		264,203		224,086
7.620%, 06/15/32 (b)		812,435		672,716
Origen Manufactured Housing Contract Trust 3.655%, 1M LIBOR + 1.200%, 10/15/37 (144A) (b)		866,578		825,913
7.820%, 03/15/32 (b)		340,241		334,911
				16,361,602
Asset-Backed - Other—8.7%
Ajax Mortgage Loan Trust Zero Coupon, 02/26/57 (144A) (i) (j)		1,071,671		300,068
Zero Coupon, 06/25/57 (144A)		1,461,140		1,347,978
Zero Coupon, 12/25/57 (144A) (b)		1,710,373		769,668
Zero Coupon, 04/25/58 (144A)		797,019		438,361
Zero Coupon, 06/25/58 (144A) (b)		600,000		172,200
Zero Coupon, 08/25/58 (144A) (b)		822,226		460,446
Zero Coupon, 11/25/58 (144A) (i) (j)		2,000,000		834,506
3.750%, 12/25/57 (144A)		3,581,832		3,594,308
3.750%, 08/25/58 (144A) (b)		3,390,197		3,327,817
3.850%, 04/25/58 (144A)		3,323,761		3,329,809
4.375%, 06/25/57 (144A)		4,853,000		4,830,665
4.375%, 06/25/58 (144A) (b) (i) (j)		1,380,000		1,372,814
4.375%, 11/25/58 (144A) (b) (i) (j)		5,870,000		5,841,749
5.250%, 06/25/57 (144A)		567,000		554,241
5.250%, 06/25/58 (144A) (b) (i) (j)		230,000		224,891
5.250%, 11/25/58 (144A) (b) (i) (j)		780,000		762,674
Allegro CLO, Ltd. 3.233%, 3M LIBOR + 1.080%, 10/21/28 (144A) (b)		1,370,000		1,355,666
3.676%, 3M LIBOR + 1.240%, 10/16/30 (144A) (b)		400,000		397,125
Asset-Backed - Other—(Continued)
ALM, Ltd. 2.604%, 3M LIBOR + 1.250%, 10/18/27 (144A) (b)		900,000		884,915
3.326%, 3M LIBOR + 0.890%, 04/16/27 (144A) (b)		360,000		356,993
3.355%, 3M LIBOR + 0.910%, 10/18/27 (144A) (b)		1,450,000		1,435,754
3.836%, 3M LIBOR + 1.400%, 07/15/26 (144A) (b)		459,000		445,298
3.936%, 3M LIBOR + 1.500%, 07/15/27 (144A) (b)		1,810,000		1,783,690
4.086%, 3M LIBOR + 1.650%, 04/16/27 (144A) (b)		1,385,000		1,313,317
4.336%, 3M LIBOR + 1.900%, 07/15/27 (144A) (b)		720,000		694,222
AMMC CLO, Ltd. 3.818%, 3M LIBOR + 1.200%, 11/10/30 (144A) (b)		500,000		495,429
Anchorage Capital CLO, Ltd. 3.686%, 3M LIBOR + 1.250%, 10/13/30 (144A) (b)		835,000		828,636
3.706%, 3M LIBOR + 1.270%, 07/15/30 (144A) (b)		710,000		703,327
3.736%, 3M LIBOR + 1.300%, 10/15/27 (144A) (b)		1,130,000		1,107,957
3.886%, 3M LIBOR + 1.450%, 01/15/30 (144A) (b)		2,410,000		2,362,171
4.009%, 3M LIBOR + 1.500%, 01/28/31 (144A) (b)		1,270,000		1,227,204
4.109%, 3M LIBOR + 1.600%, 07/28/28 (144A) (b)		800,000		780,180
4.136%, 3M LIBOR + 1.700%, 10/15/27 (144A) (b)		250,000		238,288
4.286%, 3M LIBOR + 1.850%, 01/15/30 (144A) (b)		1,010,000		957,803
4.359%, 3M LIBOR + 1.850%, 01/28/31 (144A) (b)		1,390,000		1,309,070
4.586%, 3M LIBOR + 2.150%, 10/13/30 (144A) (b)		590,000		568,456
Apidos CLO 3.430%, 3M LIBOR + 0.980%, 01/19/25 (144A) (b)		224,269		224,153
Arbor Realty Collateralized Loan Obligation, Ltd. 3.445%, 1M LIBOR + 0.990%, 12/15/27 (144A) (b)		1,200,000		1,197,064
Arbor Realty Commercial Real Estate Notes, Ltd. 3.445%, 1M LIBOR + 0.990%, 08/15/27 (144A) (b)		570,000		561,485
4.155%, 1M LIBOR + 1.700%, 09/15/26 (144A) (b)		1,590,000		1,597,430
Ares CLO, Ltd. 3.606%, 3M LIBOR + 1.170%, 10/15/30 (144A) (b)		390,000		383,872
Atrium 4.119%, 3M LIBOR + 1.650%, 04/22/27 (144A) (b)		1,119,000		1,077,699
Avery Point CLO, Ltd. 3.429%, 3M LIBOR + 0.980%, 07/17/26 (144A) (b)		1,000,538		997,027
3.936%, 3M LIBOR + 1.500%, 01/15/28 (144A) (b)		2,820,000		2,820,020
B2R Mortgage Trust 2.524%, 05/15/48 (144A)		198,305		196,135
3.336%, 11/15/48 (144A)		326,258		324,925
Babson CLO, Ltd. 3.659%, 3M LIBOR + 1.190%, 10/20/30 (144A) (b)		870,000		865,013
3.869%, 3M LIBOR + 1.400%, 01/20/31 (144A) (b)		250,000		242,135
Benefit Street Partners CLO, Ltd. 3.225%, 3M LIBOR + 0.780%, 07/18/27 (144A) (b)		820,000		809,206
3.559%, 3M LIBOR + 1.090%, 04/20/31 (144A) (b)		440,000		432,919
3.569%, 3M LIBOR + 1.100%, 01/20/31 (144A) (b)		2,000,000		1,969,812
3.685%, 3M LIBOR + 1.240%, 10/18/29 (144A) (b)		3,800,000		3,773,978
BlueMountain CLO, Ltd. 3.649%, 3M LIBOR + 1.180%, 10/22/30 (144A) (b)		760,000		750,277
Bowman Park CLO, Ltd. 3.857%, 3M LIBOR + 1.180%, 11/23/25 (144A) (b)		1,100,000		1,096,986
BSPRT Issuer, Ltd. 3.559%, 1M LIBOR + 1.050%, 03/15/28 (144A) (b)		390,000		389,068
3.805%, 1M LIBOR + 1.350%, 06/15/27 (144A) (b)		293,169		293,260
C-BASS Trust 2.485%, 1M LIBOR + 0.170%, 04/25/37 (b)		414,281		306,454
2.666%, 1M LIBOR + 0.160%, 10/25/36 (b)		269,192		203,651

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Other—(Continued)
Carlyle Global Market Strategies CLO, Ltd. 3.335%, 3M LIBOR + 0.890%, 01/18/29 (144A) (b)		510,000	$	502,786
3.419%, 3M LIBOR + 0.970%, 04/17/31 (144A) (b)		970,000		952,852
3.559%, 3M LIBOR + 1.050%, 07/27/31 (144A) (b)		4,100,000		4,044,293
3.919%, 3M LIBOR + 1.450%, 01/20/29 (144A) (b)		7,485,000		7,485,090
4.109%, 3M LIBOR + 1.600%, 07/28/28 (144A) (b)		640,000		631,883
Carlyle U.S. CLO, Ltd. 3.616%, 3M LIBOR + 1.180%, 01/15/30 (144A) (b)		1,550,000		1,540,082
Carrington Mortgage Loan Trust 2.626%, 1M LIBOR + 0.120%, 10/25/36 (b)		476,369		348,647
2.666%, 1M LIBOR + 0.160%, 10/25/36 (b)		614,941		538,124
2.726%, 1M LIBOR + 0.220%, 10/25/36 (b)		730,000		491,500
2.746%, 1M LIBOR + 0.240%, 08/25/36 (b)		4,800,000		3,595,836
CBAM, Ltd. 3.719%, 3M LIBOR + 1.250%, 07/20/30 (144A) (b)		2,000,000		1,972,680
4.199%, 3M LIBOR + 1.750%, 10/17/29 (144A) (b)		1,020,000		999,725
Cedar Funding CLO, Ltd. 3.449%, 3M LIBOR + 0.980%, 04/20/31 (144A) (b)		380,000		371,878
3.549%, 3M LIBOR + 1.100%, 07/17/31 (144A) (b)		770,000		757,658
3.559%, 3M LIBOR + 1.090%, 10/20/28 (144A) (b)		3,680,000		3,646,965
3.699%, 3M LIBOR + 1.250%, 10/17/30 (144A) (b)		5,150,000		5,135,302
Cent CLO, Ltd. 3.506%, 3M LIBOR + 1.070%, 10/15/26 (144A) (b)		1,130,000		1,119,418
Chase Funding Trust 6.333%, 04/25/32		323,956		327,716
CIFC Funding, Ltd. 3.445%, 3M LIBOR + 1.000%, 04/18/31 (144A) (b)		589,000		577,606
4.186%, 3M LIBOR + 1.750%, 07/16/30 (144A) (b)		250,000		245,674
Citicorp Residential Mortgage Trust 5.127%, 06/25/37		1,030,000		967,908
Citigroup Mortgage Loan Trust, Inc. 2.826%, 1M LIBOR + 0.320%, 11/25/36 (b)		990,000		834,870
Countrywide Asset-Backed Certificates 2.666%, 1M LIBOR + 0.160%, 12/25/35 (b)		1,832,286		1,799,329
2.726%, 1M LIBOR + 0.220%, 12/25/25 (b)		70,386		77,105
Countrywide Asset-Backed Certificates Trust 2.666%, 1M LIBOR + 0.160%, 09/25/46 (b)		117,482		115,039
Countrywide Revolving Home Equity Loan Resecuritization Trust 2.755%, 1M LIBOR + 0.300%, 12/15/33 (144A) (b)		579,812		542,031
Countrywide Revolving Home Equity Loan Trust 2.635%, 1M LIBOR + 0.180%, 05/15/35 (b)		383,650		368,897
Credit-Based Asset Servicing & Securitization LLC 3.459%, 12/25/36		206,346		184,991
CWABS Asset-Backed Certificates Trust 5.669%, 05/25/36 (b)		381,875		372,312
5.690%, 05/25/36 (b)		1,392,665		1,354,596
CWHEQ Revolving Home Equity Loan Resuritization Trust 2.695%, 1M LIBOR + 0.240%, 12/15/35 (144A) (b)		430,917		414,769
CWHEQ Revolving Home Equity Loan Trust 2.605%, 1M LIBOR + 0.150%, 11/15/36 (b)		765,122		625,535
DCP Rights LLC 5.463%, 10/25/44 (144A)		6,668,360		6,811,357
Dorchester Park CLO DAC 3.919%, 3M LIBOR + 1.450%, 04/20/28 (144A) (b)		934,000		907,012
Dryden CLO, Ltd. 3.556%, 3M LIBOR + 1.120%, 01/15/31 (144A) (b)		6,020,000		5,963,827
Asset-Backed - Other—(Continued)
Dryden Senior Loan Fund
3.336%, 3M LIBOR + 0.900%, 10/15/27 (144A) (b)		1,630,000		1,624,833
3.816%, 3M LIBOR + 1.200%, 08/15/30 (144A) (b)		2,205,000		2,187,775
4.286%, 3M LIBOR + 1.850%, 10/15/27 (144A) (b)		660,000		639,937
Elevation CLO, Ltd. 4.540%, 3M LIBOR + 2.050%, 10/25/30 (144A) (b)		1,125,000		1,053,145
Finance of America Structured Securities Trust 6.000%, 09/25/28 (144A) (b)		596,000		571,206
First Franklin Mortgage Loan Trust 2.646%, 1M LIBOR + 0.140%, 12/25/36 (b)	5,442,877		3,184,429
2.656%, 1M LIBOR + 0.150%, 12/25/36 (b)		3,110,382		2,653,850
2.716%, 1M LIBOR + 0.210%, 12/25/36 (b)		10,012,511		5,930,555
Flatiron CLO, Ltd. 3.326%, 3M LIBOR + 0.890%, 04/15/27 (144A) (b)		970,000		962,756
Fremont Home Loan Trust 2.646%, 1M LIBOR + 0.140%, 02/25/37 (b)		2,474,716		1,899,534
Galaxy CLO, Ltd. 4.296%, 3M LIBOR + 1.680%, 11/15/26 (144A) (b)		430,000		409,347
GE-WMC Asset-Backed Pass-Through Certificates 2.756%, 1M LIBOR + 0.250%, 12/25/35 (b)		172,996		171,767
GE-WMC Mortgage Securities Trust 2.656%, 1M LIBOR + 0.150%, 08/25/36 (b)		7,181,108		4,388,547
Greystone Commercial Real Estate Notes, Ltd. 4.005%, 1M LIBOR + 1.550%, 03/15/27 (144A) (b)		400,000		398,116
Greywolf CLO, Ltd. 4.799%, 3M LIBOR + 2.350%, 01/17/27 (144A) (b)		320,000		319,951
Highbridge Loan Management, Ltd. 3.582%, 3M LIBOR + 1.000%, 02/05/31 (144A) (b)		1,390,000		1,362,460
Home Equity Mortgage Loan Asset-Backed Trust 2.706%, 1M LIBOR + 0.200%, 07/25/37 (b)		1,146,680		716,904
ICG U.S. CLO, Ltd. 3.590%, 3M LIBOR + 1.140%, 10/19/28 (144A) (b)		1,065,000		1,054,933
Invitation Homes Trust 4.455%, 1M LIBOR + 2.000%, 07/17/37 (144A) (b)		712,107		704,963
4.955%, 1M LIBOR + 2.500%, 03/17/37 (144A) (b)		410,000		406,702
Knollwood CDO, Ltd. 4.355%, 3M LIBOR + 3.200%, 01/10/39 (144A) (b) (i) (j)		899,417		0
LCM, Ltd. 3.379%, 3M LIBOR + 0.870%, 10/20/27 (144A) (b)		1,010,000		1,001,606
3.539%, 3M LIBOR + 1.070%, 01/20/31 (144A) (b)		2,590,000		2,559,852
Lehman ABS Mortgage Loan Trust 2.596%, 1M LIBOR + 0.090%, 06/25/37 (144A) (b)		204,175		144,847
Lendmark Funding Trust 2.830%, 12/22/25 (144A)		5,270,000		5,199,729
Litigation Fee Residual Funding LLC 4.000%, 10/30/27 (144A)		2,518,496		2,507,237
LoanCore Issuer, Ltd. 3.585%, 1M LIBOR + 1.130%, 05/15/28 (144A) (b)		2,210,000		2,181,623
Long Beach Mortgage Loan Trust 2.616%, 1M LIBOR + 0.110%, 10/25/36 (b)		554,922		237,511
2.656%, 1M LIBOR + 0.150%, 06/25/36 (b)		623,419		344,150
2.666%, 1M LIBOR + 0.160%, 05/25/36 (b)		3,625,760		1,626,261
2.666%, 1M LIBOR + 0.160%, 10/25/36 (b)		2,205,033		949,790
2.666%, 1M LIBOR + 0.160%, 11/25/36 (b)		2,680,840		1,113,204
2.686%, 1M LIBOR + 0.180%, 03/25/46 (b)		1,192,328		887,554

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Other—(Continued)
Long Beach Mortgage Loan Trust 2.686%, 1M LIBOR + 0.180%, 05/25/46 (b)		2,037,915	$	817,436
2.726%, 1M LIBOR + 0.220%, 11/25/36 (b)		788,845		330,550
2.766%, 1M LIBOR + 0.260%, 05/25/36 (b)		2,517,886		1,149,957
Madison Park Funding, Ltd. 3.400%, 3M LIBOR + 0.950%, 04/19/30 (144A) (b)		1,330,000		1,314,068
3.659%, 3M LIBOR + 1.190%, 10/21/30 (144A) (b)		5,000,000		4,973,960
3.709%, 3M LIBOR + 1.200%, 07/29/30 (144A) (b)		2,030,000		2,015,372
Marathon CRE Issuer, Ltd. 3.605%, 1M LIBOR + 1.150%, 06/15/28 (144A) (b)		510,000		509,996
Marble Point CLO, Ltd. 3.625%, 3M LIBOR + 1.180%, 12/18/30 (144A) (b)		580,000		573,426
Merrill Lynch First Franklin Mortgage Loan Trust 2.746%, 1M LIBOR + 0.240%, 05/25/37 (b)		10,885,316		7,279,257
Mountain Hawk II CLO, Ltd. 4.069%, 3M LIBOR + 1.600%, 07/20/24 (144A) (b)		1,138,000		1,129,885
MP CLO, Ltd. 3.719%, 3M LIBOR + 1.250%, 10/20/30 (144A) (b)		1,010,000		1,002,650
Neuberger Berman Loan Advisers CLO, Ltd. 3.615%, 3M LIBOR + 1.170%, 10/18/30 (144A) (b)		1,770,000		1,750,137
Nomura Asset Acceptance Corp. Alternative Loan Trust 2.906%, 1M LIBOR + 0.400%, 10/25/36 (144A) (b)		341,472		304,787
OCP CLO, Ltd. 3.328%, 3M LIBOR + 0.820%, 10/26/27 (144A) (b)		270,000		268,845
3.565%, 3M LIBOR + 1.120%, 10/18/28 (144A) (b)		2,366,000		2,343,828
3.588%, 3M LIBOR + 1.080%, 04/26/31 (144A) (b)		160,000		157,344
3.696%, 3M LIBOR + 1.260%, 07/15/30 (144A) (b)		3,270,000		3,247,816
4.595%, 3M LIBOR + 1.950%, 11/20/30 (144A) (b)		250,000		232,344
Octagon Investment Partners, Ltd. 3.356%, 3M LIBOR + 1.020%, 07/17/30 (144A) (b)		3,370,000		3,317,216
3.396%, 3M LIBOR + 0.960%, 04/16/31 (144A) (b)		2,210,000		2,171,007
3.490%, 3M LIBOR + 1.000%, 01/25/31 (144A) (b)		3,420,000		3,371,422
3.546%, 3M LIBOR + 0.900%, 05/21/27 (144A) (b)		4,670,000		4,637,221
3.659%, 3M LIBOR + 1.190%, 01/20/31 (144A) (b)		430,000		423,309
3.996%, 3M LIBOR + 1.350%, 05/21/27 (144A) (b)		3,090,000		3,034,167
OFSI Fund, Ltd. 3.566%, 3M LIBOR + 1.130%, 03/20/25 (144A) (b)		4,190,000		4,125,059
OHA Loan Funding, Ltd. 3.717%, 3M LIBOR + 1.040%, 05/23/31 (144A) (b)		5,670,000		5,550,074
OneMain Financial Issuance Trust 4.100%, 03/20/28 (144A)		178,301		178,720
4.320%, 07/18/25 (144A)		3,100,000		3,102,159
OZLM Funding, Ltd. 3.719%, 3M LIBOR + 1.250%, 10/22/30 (144A) (b)		10,705,000		10,624,659
5.469%, 3M LIBOR + 3.000%, 01/22/29 (144A) (b)		3,950,000		3,950,711
OZLM, Ltd. 3.656%, 3M LIBOR + 1.220%, 11/22/30 (144A) (b)		690,000		684,729
3.959%, 3M LIBOR + 1.490%, 01/20/29 (144A) (b)		1,950,000		1,949,290
4.136%, 3M LIBOR + 1.700%, 01/15/29 (144A) (b)		2,570,000		2,516,346
4.369%, 3M LIBOR + 1.900%, 01/20/31 (144A) (b)		320,000		302,237
4.569%, 3M LIBOR + 2.100%, 01/20/29 (144A) (b)		810,000		807,909
Palmer Square CLO, Ltd. 3.475%, 3M LIBOR + 1.030%, 04/18/31 (144A) (b)		1,040,000		1,020,155
3.579%, 3M LIBOR + 1.130%, 01/17/31 (144A) (b)		1,312,000		1,288,320
3.966%, 3M LIBOR + 1.350%, 08/15/26 (144A) (b)		945,000		934,710
Asset-Backed - Other—(Continued)
Parallel Ltd. 4.219%, 3M LIBOR + 1.750%, 07/20/27 (144A) (b)		350,000		335,653
Progress Residential Trust 2.740%, 06/12/32 (144A)		1,110,732		1,096,671
2.768%, 08/17/34 (144A)		927,022		909,036
4.778%, 03/17/35 (144A)		120,000		118,817
6.005%, 1M LIBOR + 3.550%, 01/17/34 (144A) (b)		347,000		346,998
6.643%, 11/12/32 (144A)		250,000		255,390
PRPM LLC 4.250%, 01/25/22 (144A)		96,867		96,678
Race Point CLO, Ltd. 3.646%, 3M LIBOR + 1.210%, 10/15/30 (144A) (b)		1,170,000		1,158,478
RAMP Trust 2.676%, 1M LIBOR + 0.170%, 02/25/37 (b)		714,122		365,633
2.776%, 1M LIBOR + 0.270%, 11/25/36 (b)		2,354,813		1,965,076
Regatta VI Funding, Ltd. 3.549%, 3M LIBOR + 1.080%, 07/20/28 (144A) (b)		2,910,000		2,881,662
Rockford Tower CLO, Ltd. 3.659%, 3M LIBOR + 1.190%, 10/20/30 (144A) (b)		2,590,000		2,563,212
3.806%, 3M LIBOR + 1.370%, 04/15/29 (144A) (b)		3,550,000		3,530,141
4.186%, 3M LIBOR + 1.750%, 10/15/29 (144A) (b)		1,590,000		1,581,121
4.236%, 3M LIBOR + 1.800%, 04/15/29 (144A) (b)		1,500,000		1,490,370
4.736%, 3M LIBOR + 2.300%, 10/15/29 (144A) (b)		310,000		300,277
RR 3, Ltd. 3.526%, 3M LIBOR + 1.090%, 01/15/30 (144A) (b)		560,000		555,323
SG Mortgage Securities Trust 2.716%, 1M LIBOR + 0.210%, 10/25/36 (b)		570,000		446,954
Silver Creek CLO, Ltd. 3.709%, 3M LIBOR + 1.240%, 07/20/30 (144A) (b)		1,330,000		1,315,749
Sound Point CLO II, Ltd. 3.578%, 3M LIBOR + 1.070%, 01/26/31 (144A) (b)		500,000		491,547
Sound Point CLO, Ltd. 4.007%, 3M LIBOR + 1.530%, 01/23/29 (144A) (b)		3,080,000		3,074,570
4.129%, 3M LIBOR + 1.660%, 10/20/28 (144A) (b)		1,240,000		1,240,051
Soundview Home Loan Trust 3.301%, 1M LIBOR + 0.795%, 01/25/35 (b)		24,775		23,565
SpringCastle America Funding LLC 3.050%, 04/25/29 (144A)		2,845,146		2,817,687
Springleaf Funding Trust 3.620%, 11/15/24 (144A)		2,062,000		2,058,721
Steele Creek CLO, Ltd. 3.686%, 3M LIBOR + 1.250%, 01/15/30 (144A) (b)		670,000		664,838
Symphony CLO, Ltd. 3.466%, 3M LIBOR + 1.030%, 10/15/25 (144A) (b)		8,213,389		8,179,756
TCI-Flatiron CLO,Ltd. 3.840%, 3M LIBOR + 1.200%, 11/17/30 (144A) (b)		1,080,000		1,072,155
TIAA CLO, Ltd. 3.586%, 3M LIBOR + 1.150%, 01/16/31 (144A) (b)		571,000		564,000
3.749%, 3M LIBOR + 1.280%, 04/20/29 (144A) (b)		900,000		895,639
Tricon American Homes Trust 4.564%, 05/17/37 (144A)		260,000		256,708
4.960%, 05/17/37 (144A)		180,000		179,280
5.104%, 01/17/36 (144A)		340,000		341,866
Venture CLO, Ltd. 3.403%, 3M LIBOR + 1.070%, 07/18/31 (144A) (b)		420,000		409,649

See accompanying notes to financial statements.

BHFTII-24

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Other—(Continued)
Vibrant CLO, Ltd. 4.019%, 3M LIBOR + 1.550%, 01/20/29 (144A) (b)		1,020,000	$	1,020,150
Voya CLO, Ltd. 3.566%, 3M LIBOR + 1.130%, 10/15/30 (144A) (b)		1,020,000		1,002,232
Washington Mutural Asset-Backed Certificates Trust 2.661%, 1M LIBOR + 0.155%, 10/25/36 (b)		914,002		743,794
2.686%, 1M LIBOR + 0.180%, 09/25/36 (b)		2,238,480		1,053,090
2.726%, 1M LIBOR + 0.220%, 02/25/37 (b)		2,194,105		939,044
Wellfleet CLO, Ltd. 3.789%, 3M LIBOR + 1.320%, 04/20/29 (144A) (b)		850,000		846,846
West CLO, Ltd. 3.749%, 3M LIBOR + 1.160%, 11/07/25 (144A) (b)		1,180,671		1,180,089
York CLO, Ltd. 3.719%, 3M LIBOR + 1.250%, 10/20/29 (144A) (b)		630,000		625,904
4.219%, 3M LIBOR + 1.750%, 10/20/29 (144A) (b)		850,000		833,370
				309,159,500
Asset-Backed - Student Loan—0.5%
Navient Private Education Loan Trust 3.500%, 12/16/58 (144A) (b)		970,000		926,866
4.205%, 1M LIBOR + 1.750%, 10/17/44 (144A) (b)		4,595,000		4,655,173
Scholar Funding Trust 3.156%, 1M LIBOR + 0.650%, 01/30/45 (144A) (b)		4,398,797		4,376,003
SLM Private Credit Student Loan Trust 3.118%, 3M LIBOR + 0.330%, 03/15/24 (b)		2,955,780		2,944,722
SLM Private Education Loan Trust 2.500%, 03/15/47 (144A)		720,000		716,390
3.000%, 05/16/44 (144A)		970,000		966,000
3.855%, 1M LIBOR + 1.400%, 10/15/31 (144A) (b)		950,393		954,124
SMB Private Education Loan Trust 3.500%, 12/17/40 (144A)		1,340,000		1,303,399
				16,842,677
Total Asset-Backed Securities (Cost $377,891,534)				377,140,503
Municipals—7.4%
Adams & Weld Counties School District No. 27J 5.000%, 12/01/42		500,000		570,120
Alabama ST 5.000%, 11/01/38		530,000		620,609
American Municipal Power, Inc., Build America Bonds 6.449%, 02/15/44		355,000		455,806
7.834%, 02/15/41		425,000		622,833
Anne Arundel County 5.000%, 10/01/47		500,000		573,080
Arizona Health Facilities Authority 2.420%, 3M LIBOR + 0.000%, 01/01/37 (b)		780,000		742,732
Arizona State University 5.000%, 07/01/43		330,000		374,662
Atlanta GA Water & Wastewater Revenue 5.000%, 11/01/41		760,000		867,586
5.000%, 11/01/43		460,000		524,359
Atlanta GA Water & Wastewater Revenue
Series B 5.000%, 11/01/47		500,000		568,305
Aurora, CO Water Revenue 5.000%, 08/01/41		1,020,000		1,150,703
5.000%, 08/01/46		1,190,000		1,340,773
Austin TX Water & Wastewater System Rev. 5.000%, 11/15/43		500,000		550,775
Bay Area Toll Bridge Authority, Build America Bonds 6.918%, 04/01/40		1,575,000		2,102,704
7.043%, 04/01/50		1,865,000		2,649,773
Berks County Industrial Development Authority 5.000%, 11/01/47		510,000		551,534
5.000%, 11/01/50		480,000		516,120
Buckeye Tobacco Settlement Financing Authority 5.875%, 06/01/47		2,100,000		1,992,354
Buena Park School District 5.000%, 08/01/47		260,000		295,693
California Health Facilities Financing Authority 5.000%, 08/15/33		495,000		574,373
Series A
5.000%, 08/15/47		500,000		548,725
California Infrastructure & Economic Development Bank 5.000%, 05/15/47		220,000		250,105
5.000%, 05/15/52		220,000		248,780
California Municipal Finance Authority 5.000%, 12/31/47		310,000		336,579
California Pollution Control Financing Authority 5.000%, 11/21/45 (144A)		450,000		465,426
California State Public Works Board, Build America Bond 8.361%, 10/01/34		760,000		1,104,257
Canaveral Port Authority 5.000%, 06/01/45		520,000		562,978
5.000%, 06/01/48		520,000		572,426
Central Puget Sound Regional Transit Authority 5.000%, 11/01/50		510,000		569,196
Central Texas Regional Mobility Authority 5.000%, 01/01/45		350,000		376,474
5.000%, 01/01/46		350,000		377,815
Chesapeake Bay Bridge & Tunnel District 5.000%, 07/01/41		360,000		405,428
5.000%, 07/01/51		275,000		297,091
Chicago O’Hare International Airport 4.472%, 01/01/49		2,320,000		2,353,663
City & County of Denver 5.000%, 08/01/48		610,000		680,309
Series A
5.000%, 08/01/44		850,000		952,212
City of Cartersville GA 5.000%, 06/01/48		510,000		581,854
City of Columbia SC Waterworks & Sewer System Revenue 5.000%, 02/01/42		390,000		447,233
5.000%, 02/01/48		420,000		479,497
City of New York NY 5.000%, 04/01/40		740,000		844,562
5.000%, 04/01/45		600,000		681,696
City of Portland 5.000%, 06/15/37		320,000		376,352
5.000%, 06/15/40		350,000		407,852

See accompanying notes to financial statements.

BHFTII-25

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Municipals—(Continued)

Security Description	Principal Amount*		Value
Clark County School District 5.000%, 06/15/30		270,000	$	314,385
5.000%, 06/15/31		570,000		660,653
5.000%, 06/15/33		630,000		724,607
Series A
5.000%, 06/15/34		600,000		684,312
Colorado Health Facilities Authority 5.250%, 02/01/31		325,000		341,426
Colorado Springs CO Utilities System Revenue 5.000%, 11/15/42		260,000		297,164
Commonwealth Financing Authority
4.144%, 06/01/38		730,000		737,687
Series A
3.864%, 06/01/38		720,000		710,050
Commonwealth of Massachusetts 5.000%, 11/01/42		620,000		705,721
5.000%, 11/01/45		540,000		612,436
Series A
5.000%, 01/01/45		700,000		795,459
Commonwealth of Massachusetts Transportation Fund Revenue 5.000%, 06/01/48		1,030,000		1,175,117
Commonwealth of Puerto Rico 8.000%, 07/01/35 (g)		5,000,000		2,687,500
Connecticut State Health & Educational Facility Authority 5.000%, 07/01/45		1,640,000		1,774,367
County of Clark NV
Series A
5.000%, 06/01/43		960,000		1,097,760
5.000%, 05/01/48		2,185,000		2,479,560
County of Franklin OH Sales Tax Revenue 5.000%, 06/01/43		460,000		529,639
5.000%, 06/01/48		900,000		1,032,300
County of King WA Sewer Revenue 5.000%, 07/01/42		320,000		364,845
5.000%, 07/01/47		520,000		573,669
Dallas Area Rapid Transit 5.000%, 12/01/41		680,000		759,805
5.000%, 12/01/46		920,000		1,024,944
Denton Independent School District 5.000%, 08/15/43		780,000		885,604
Denver City & County, CO Airport System Revenue 5.000%, 11/15/29		380,000		441,986
5.000%, 11/15/30		305,000		352,428
District of Columbia Water & Sewer Authority 5.000%, 10/01/49		420,000		476,826
DuBois Hospital Authority 5.000%, 07/15/43		360,000		395,363
Dutchess County Local Development Corp. 5.000%, 07/01/46		1,025,000		1,119,935
Florida Department of Management Services
Series A, COPs
5.000%, 11/01/27		510,000		615,810
5.000%, 11/01/28		520,000		634,665
5.000%, 11/01/29		250,000		308,425
Grand Parkway Transportation Corp. 5.000%, 10/01/43		1,470,000		1,665,142
Grant County Public Utility District No. 2 4.584%, 01/01/40		315,000		331,210
Great Lakes Water Authority Water Supply System Revenue 5.250%, 07/01/33		150,000		173,919
Houston Independent School District 5.000%, 07/15/36		420,000		491,471
Idaho Health Facilities Authority 5.000%, 12/01/47		320,000		356,205
Indiana Finance Authority 5.000%, 02/01/35		480,000		566,650
5.000%, 10/01/45		870,000		948,674
Indiana Housing & Community Development Authority 3.800%, 07/01/38		260,000		260,985
JobsOhio Beverage System 3.985%, 01/01/29		835,000		860,417
Kentucky Economic Development Finance Authority 5.250%, 06/01/50		330,000		345,507
Kentucky Turnpike Authority 5.000%, 07/01/20		370,000		386,654
Las Vegas Convention & Visitors Authority 5.000%, 07/01/43		500,000		559,285
Las Vegas Valley Water District 5.000%, 06/01/46		300,000		334,323
Lexington County Health Services District, Inc. 5.000%, 11/01/41		300,000		321,435
Long Beach, CA Harbor Revenue 5.000%, 05/15/47		580,000		658,358
Los Angeles County Metropolitan Transportation Authority 5.000%, 07/01/42		850,000		975,953
Los Angeles Department of Water & Power Power System Revenue 6.574%, 07/01/45		395,000		547,719
Los Angeles, CA Community College District, Build America Bond 6.600%, 08/01/42		2,280,000		3,132,766
Los Angeles, CA Department of Water & Power Revenue, Build America Bond 6.603%, 07/01/50		565,000		797,407
Los Angeles, CA Unified School District, Build America Bond 6.758%, 07/01/34		640,000		823,622
Louisiana Public Facilities Authority 5.000%, 07/01/48		340,000		370,416
Maryland Stadium Authority 5.000%, 05/01/41		460,000		512,730
Massachusetts Bay Transportation Authority
5.000%, 07/01/39		320,000		363,565
5.000%, 07/01/40		340,000		385,475
5.000%, 07/01/41		360,000		407,578
5.000%, 07/01/42		370,000		418,607
5.000%, 07/01/43		300,000		338,934
Massachusetts Development Finance Agency
5.000%, 07/01/43		680,000		742,261
5.000%, 09/01/45		290,000		324,545
5.000%, 07/01/47		500,000		549,755
5.000%, 07/01/48		1,280,000		1,391,885
5.000%, 07/01/53		720,000		775,231

See accompanying notes to financial statements.

BHFTII-26

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Municipals—(Continued)

Security Description	Principal Amount*		Value
Massachusetts Educational Financing Authority 5.000%, 01/01/22		500,000	$	536,895
Massachusetts Housing Finance Agency
4.500%, 12/01/39		265,000		273,952
4.500%, 12/01/48		330,000		340,880
4.600%, 12/01/44		285,000		294,345
Massachusetts Port Authority 5.000%, 07/01/43		460,000		507,053
Massachusetts School Building Authority 5.250%, 02/15/48		770,000		891,953
Massachusetts Water Resources Authority 5.000%, 08/01/40		270,000		304,015
Mesquite Independent School District 5.000%, 08/15/42		570,000		638,440
Metropolitan Atlanta Rapid Transit Authority Series A 5.000%, 07/01/41		510,000		566,921
5.000%, 07/01/42		510,000		566,605
Series B 5.000%, 07/01/45		400,000		449,056
Metropolitan Government of Nashville & Davidson County, Health & Educational Facilities Board 5.000%, 07/01/40		260,000		280,535
5.000%, 07/01/46		690,000		741,232
Metropolitan St. Louis Sewer District 5.000%, 05/01/42		710,000		808,875
Series A
5.000%, 05/01/47		650,000		735,416
Metropolitan Transportation Authority 5.000%, 11/15/42		670,000		758,413
5.000%, 11/15/45		250,000		270,780
5.250%, 11/15/57		820,000		908,839
Metropolitan Transportation Authority, Build America Bonds 6.668%, 11/15/39	170,000		221,401
6.687%, 11/15/40		590,000		760,734
6.814%, 11/15/40		1,005,000		1,334,911
Metropolitan Washington Airports Authority 5.000%, 10/01/32		890,000		1,008,868
5.000%, 10/01/43		790,000		882,248
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Build America Bond 7.462%, 10/01/46		560,000		804,378
Miami-Dade County, FL 5.000%, 07/01/35		345,000		392,990
Miami-Dade County, FL Aviation Revenue 2.504%, 10/01/24		1,000,000		967,360
3.354%, 10/01/29		195,000		186,245
3.454%, 10/01/30		355,000		339,298
3.504%, 10/01/31		330,000		314,266
5.000%, 10/01/38		1,025,000		1,118,531
5.000%, 10/01/40		500,000		554,065
Series C 4.062%, 10/01/31		495,000		507,717
Miami-Dade County, FL Educational Facilities Authority 5.000%, 04/01/53		840,000		926,176
5.073%, 04/01/50		655,000		737,202
Series A 5.000%, 04/01/48		530,000		589,641
Michigan Finance Authority 5.000%, 11/15/41		330,000		355,532
5.000%, 12/01/47		1,810,000		1,932,265
Michigan State Housing Development Authority 3.550%, 10/01/33		300,000		300,435
4.000%, 10/01/43		290,000		288,182
4.050%, 10/01/48		140,000		139,034
4.150%, 10/01/53		690,000		689,965
Mississippi State Hospital Equipment & Facilities Authority, Baptist Memorial Health Care 5.000%, 09/01/46		630,000		670,333
Missouri State Health & Educational Facilities Authority Revenue 3.652%, 08/15/57		800,000		755,280
5.000%, 11/15/29		340,000		386,077
Municipal Electric Authority of Georgia, Build America Bond 6.637%, 04/01/57		1,000,000		1,057,240
New Hope Cultural Education Facilities Finance Corp. 5.000%, 08/15/47		380,000		422,670
New Jersey State Turnpike Authority, Build America Bond 7.414%, 01/01/40		1,451,000		2,044,459
New Jersey Transportation Trust Fund Authority 5.000%, 06/15/29		380,000		421,823
New Orleans Aviation Board 5.000%, 01/01/40		530,000		569,686
New York City Housing Development Corp 3.700%, 11/01/38		320,000		318,208
3.850%, 11/01/43		950,000		948,451
4.000%, 11/01/53		1,010,000		1,004,314
New York City Transitional Finance Authority Building Aid Revenue 5.000%, 07/15/40		370,000		410,593
New York City Transitional Finance Authority Future Tax Secured Revenue 3.050%, 05/01/27		1,670,000		1,606,891
3.550%, 05/01/25		1,475,000		1,490,679
5.000%, 08/01/31		190,000		219,340
5.000%, 02/01/35		410,000		463,886
5.000%, 05/01/36		390,000		441,227
New York City Water & Sewer System 5.000%, 06/15/39		1,070,000		1,230,682
5.000%, 06/15/40		770,000		882,920
5.000%, 06/15/47		985,000		1,105,633
5.375%, 06/15/43		2,360,000		2,503,630
5.500%, 06/15/43		2,825,000		3,009,783
5.882%, 06/15/44		1,150,000		1,474,587
New York City Water & Sewer System, Build America Bonds 5.440%, 06/15/43		505,000		612,025
5.750%, 06/15/41		675,000		844,162
New York Convention Center Development Corp. 5.000%, 11/15/40		370,000		412,439
5.000%, 11/15/46		920,000		1,030,253

See accompanying notes to financial statements.

BHFTII-27

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Municipals—(Continued)

Security Description	Principal Amount*		Value
New York State Dormitory Authority 5.000%, 02/15/31		330,000	$	382,173
5.000%, 03/15/32		580,000		662,766
5.000%, 02/15/36		620,000		712,504
5.000%, 02/15/37		360,000		412,243
5.000%, 02/15/38		330,000		376,547
5.000%, 02/15/39		330,000		375,477
5.000%, 03/15/39		810,000		929,540
5.000%, 02/15/40		380,000		431,756
5.000%, 02/15/41		620,000		702,944
5.000%, 02/15/42		840,000		951,703
5.000%, 02/15/43		540,000		611,372
Series A
5.000%, 03/15/41		530,000		605,483
5.000%, 03/15/42		530,000		605,032
5.000%, 03/15/43		1,050,000		1,190,793
5.000%, 03/15/48		2,590,000		2,959,748
5.000%, 10/01/48		335,000		440,840
Series B
5.000%, 10/01/38		830,000		972,619
New York State Dormitory Authority, Build America Bond 5.389%, 03/15/40		1,075,000		1,259,201
New York State Urban Development Corp. 2.860%, 03/15/24		2,030,000		2,013,557
3.120%, 03/15/25		980,000		971,974
3.320%, 03/15/29		1,285,000		1,254,314
New York Transportation Development Corp. 5.000%, 07/01/46		340,000		357,476
5.250%, 01/01/50		2,060,000		2,189,018
North Carolina Department of Transportation 5.000%, 06/30/54		1,000,000		1,040,430
North Carolina Turnpike Authority 5.000%, 01/01/35		360,000		412,070
Ohio Turnpike & Infrastructure Commission 5.000%, 02/15/48		550,000		589,418
Omaha Public Power District 5.000%, 02/01/42		600,000		682,644
Orange County Local Transportation Authority, Build America Bond 6.908%, 02/15/41		1,420,000		1,879,583
Oregon School Boards Association 4.759%, 06/30/28		1,740,000		1,878,034
5.490%, 06/30/23		1,410,000		1,570,500
Pennsylvania Economic Development Financing Authority 5.000%, 12/31/38		510,000		546,485
Pennsylvania State University
5.000%, 09/01/43		360,000		414,443
5.000%, 09/01/48		420,000		481,631
Pennsylvania Turnpike Commission
5.000%, 12/01/46		320,000		347,821
Series A
5.000%, 12/01/48		3,300,000		3,705,570
Series B
5.000%, 12/01/43		1,010,000		1,121,625
Permanent University Fund - University of Texas System 3.376%, 07/01/47		660,000		597,815
Port Authority of New York & New Jersey 4.458%, 10/01/62		1,290,000		1,312,459
4.810%, 10/15/65		360,000		390,917
4.960%, 08/01/46		1,910,000		2,192,775
5.000%, 11/15/47		290,000		321,735
Port of Seattle 5.000%, 05/01/43		260,000		284,999
Public Power Generation Agency Revenue 5.000%, 01/01/35		360,000		400,342
Regents of the University of California Medical Center Pooled Revenue, Build America Bonds
6.583%, 05/15/49		1,455,000		1,924,543
Series L
5.000%, 05/15/47		460,000		511,704
Riverside, CA, Electric Revenue, Buld America Bond 7.605%, 10/01/40		525,000		768,133
Royal Oak Hospital Finance Authority 5.000%, 09/01/39		450,000		486,009
Sacramento County Sanitation Districts Financing Authority 2.365%, 3M LIBOR + 0.000%, 12/01/35 (b)		560,000		543,900
Salt Lake City Corp. Airport Revenue 5.000%, 07/01/47	1,510,000		1,670,623
Salt River Arizona Project Agricultural Improvement & Power District 5.000%, 01/01/36	520,000		609,955
Series A
5.000%, 12/01/45		1,870,000		2,076,242
San Antonio TX Electric & Gas Systems Revenue 5.000%, 02/01/48		250,000		269,650
San Antonio Water System 5.000%, 05/15/39		1,300,000		1,450,423
San Antonio, TX Electric & Gas Systems Revenue, Build Amereica Bond 5.808%, 02/01/41		470,000		595,965
San Diego County Regional Airport Authority 5.000%, 07/01/47		470,000		529,511
San Diego Public Facilities Financing Authority 5.000%, 05/15/39		475,000		544,792
San Diego Unified School District 5.000%, 07/01/41		780,000		898,739
San Francisco City & County AirportComm-San Francisco International Airport 5.000%, 05/01/46		980,000		1,074,903
5.000%, 05/01/47		620,000		685,708
San Jose Redevelopment Agency Successor Agency 2.958%, 08/01/24		1,195,000		1,182,572
South Carolina Ports Authority 5.000%, 07/01/55		470,000		508,371
South Carolina Public Service Authority 2.388%, 12/01/23		1,085,000		1,029,589
5.000%, 12/01/49		700,000		729,239
5.000%, 12/01/50		700,000		733,166

See accompanying notes to financial statements.

BHFTII-28

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Municipals—(Continued)

Security Description	Principal Amount*		Value
State of California 2.250%, 10/01/23		1,265,000	$	1,231,288
4.600%, 04/01/38		3,690,000		3,805,681
State of California General Obligation Unlimited, Build America Bonds 7.300%, 10/01/39		860,000		1,180,539
7.350%, 11/01/39		550,000		759,269
7.500%, 04/01/34		1,125,000		1,533,071
7.550%, 04/01/39		1,375,000		1,969,756
State of Connecticut 3.310%, 01/15/26		1,445,000		1,416,519
State of District of Columbia 5.000%, 06/01/42		500,000		567,080
State of Illinois
Series A
5.000%, 05/01/20		400,000		410,688
5.000%, 12/01/24		250,000		266,833
Series D
5.000%, 11/01/22		490,000		516,813
5.000%, 11/01/24		1,280,000		1,365,760
5.000%, 11/01/25		3,450,000		3,688,188
State of Illinois, General Obligation Unlimited 5.100%, 06/01/33		4,320,000		4,118,818
State of Minnesota
Series A
5.000%, 08/01/31		260,000		314,314
5.000%, 08/01/32		270,000		324,875
5.000%, 08/01/33		260,000		311,623
5.000%, 08/01/34		260,000		310,167
5.000%, 08/01/35		500,000		594,150
State of Mississippi 5.000%, 11/01/35		280,000		321,535
State of Missouri 3.086%, 09/15/51		1,450,000		1,238,981
3.651%, 01/15/46		330,000		317,929
State of Ohio 5.000%, 03/15/32		930,000		1,042,195
5.000%, 05/01/34		420,000		476,091
5.000%, 05/01/35		420,000		475,045
5.000%, 05/01/36		1,015,000		1,144,879
5.000%, 05/01/37		760,000		854,909
State of Texas 5.000%, 04/01/40		380,000		429,138
5.000%, 04/01/43		610,000		685,079
State of Virginia 5.000%, 06/01/40		700,000		802,900
5.000%, 12/01/40		720,000		825,840
5.000%, 12/01/41		690,000		790,222
State of Washington General Obligation Unlimited 5.000%, 07/01/30		1,440,000		1,635,826
5.000%, 08/01/30		415,000		484,338
5.000%, 08/01/40		1,300,000		1,460,413
5.000%, 02/01/41		610,000		689,916
5.000%, 08/01/41		400,000		455,236
5.000%, 08/01/42		420,000		477,658
State of Wisconsin 3.154%, 05/01/27		1,220,000		1,202,859
5.000%, 05/01/32		340,000		388,382
5.000%, 05/01/33		310,000		353,335
5.000%, 11/01/33		420,000		491,938
5.000%, 05/01/34		400,000		455,416
5.000%, 05/01/36		490,000		555,439
5.000%, 05/01/38		500,000		561,515
Sumter Landing Community Development District 4.172%, 10/01/47		385,000		383,691
Tennessee Housing Development Agency
3.750%, 07/01/38		280,000		279,989
3.850%, 07/01/43		130,000		129,386
3.950%, 01/01/49		100,000		100,000
Texas Municipal Gas Acquisition & Supply Corp. I 6.250%, 12/15/26		260,000		297,084
Texas Private Activity Bond Surface Transportation Corp. 5.000%, 12/31/55		170,000		178,274
Texas Water Development Board 5.000%, 10/15/38		750,000		873,562
5.000%, 10/15/43		750,000		858,300
5.000%, 10/15/47		300,000		340,557
5.000%, 04/15/49		4,870,000		5,583,504
Tobacco Settlement Finance Authority 7.467%, 06/01/47		1,200,000		1,175,676
Tobacco Settlement Financing Corp. 6.706%, 06/01/46		275,000		259,509
TSASC, Inc. 5.000%, 06/01/41		560,000		577,819
University of California CA, Revenue 3.063%, 07/01/25		665,000		656,308
4.601%, 05/15/31		650,000		697,872
4.858%, 05/15/12		980,000		1,028,726
University of Houston 5.000%, 02/15/33		390,000		444,464
5.000%, 02/15/34		350,000		397,429
5.000%, 02/15/35		800,000		905,104
5.000%, 02/15/36		1,040,000		1,172,371
University of Oregon 5.000%, 04/01/46		380,000		425,201
University of Texas 2.756%, 05/15/26		1,810,000		1,751,501
2.836%, 05/15/27		805,000		774,450
Upper Arlington City School District 5.000%, 12/01/48		670,000		762,286
Virginia Small Business Financing Authority 5.000%, 12/31/52		710,000		755,958
5.000%, 12/31/56		720,000		763,949
Washington Metropolitan Area Transit Authority 5.000%, 07/01/36		290,000		333,677
Washington State Convention Center Public Facilities District 5.000%, 07/01/58		1,990,000		2,200,562
Water Revenue Authority of Georgia, Build America Bond 5.000%, 11/01/40		250,000		277,850
Weld County School District No. 2 5.250%, 12/01/41		560,000		646,005

See accompanying notes to financial statements.

BHFTII-29

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Municipals—(Continued)

Security Description	Principal Amount*		Value
West Virginia Hospital Finance Authority 5.000%, 06/01/19		365,000	$	369,679
5.000%, 06/01/20		390,000		405,471
5.000%, 06/01/21		390,000		415,311
5.000%, 06/01/22		425,000		463,016
5.000%, 06/01/23		355,000		394,352
5.000%, 06/01/24		375,000		423,581
Wisconsin Health & Educational Facilities Authority 5.000%, 12/15/44		310,000		330,829
Total Municipals (Cost $264,368,329)				261,061,318
Mortgage-Backed Securities—4.6%
Collateralized Mortgage Obligations—1.7%
Alternative Loan Trust
6.000%, 04/25/37		150,463		107,858
American Home Mortgage Assets Trust 3.077%, 12M MTA + 0.920%, 11/25/46 (b)		300,121		149,178
3.097%, 12M MTA + 0.940%, 10/25/46 (b)		522,138		456,845
APS Resecuritization Trust 5.106%, 1M LIBOR + 2.600%, 04/27/47 (144A) (b)		679,411		691,080
5.356%, 1M LIBOR + 2.850%, 09/27/46 (144A) (b)		2,807,966		2,895,217
Ari Investments LLC 4.480%, 01/06/25 (k)		1,023,181		1,023,181
Banc of America Alternative Loan Trust 5.500%, 10/25/35		1,168,237		1,150,334
Bear Stearns Asset-Backed Securities Trust 6.250%, 12/25/35		2,472,383		2,378,476
6.250%, 02/25/36		2,912,882		2,548,009
Chase Mortgage Finance Trust 6.000%, 12/25/37		9,493,651		7,016,016
CIM Trust 3.015%, 06/25/57 (144A) (b)		631,432		609,308
Countrywide Alternative Loan Trust 2.646%, 1M LIBOR + 0.140%, 04/25/47 (b)		828,526		783,942
2.660%, 1M LIBOR + 0.190%, 03/20/47 (b)		1,849,636		1,550,780
2.670%, 1M LIBOR + 0.200%, 07/20/46 (b)		2,936,367		2,219,372
2.696%, 1M LIBOR + 0.190%, 10/25/46 (b)		1,138,438		1,083,800
2.716%, 1M LIBOR + 0.210%, 07/25/46 (b)		1,511,497		1,421,966
2.736%, 1M LIBOR + 0.230%, 11/25/36 (b)		566,320		436,801
2.856%, 1M LIBOR + 0.350%, 06/25/35 (b)		1,577,760		1,397,362
3.106%, 1M LIBOR + 0.600%, 01/25/36 (b)		626,904		529,580
3.887%, 12M MTA + 1.730%, 11/25/46 (b)		3,251,232		2,805,861
5.500%, 04/25/37		898,249		706,598
6.000%, 05/25/37		3,237,922		2,291,381
Countrywide Home Loan Mortgage Pass-Through Trust 3.117%, 12M MTA + 0.960%, 04/25/46 (b)		4,082,871		2,059,396
Credit Suisse Mortgage Capital Certificates 2.675%, 1M LIBOR + 0.180%, 03/27/36 (144A) (b)		2,142,162		1,802,979
6.500%, 10/27/37 (144A)		2,615,084		1,496,214
CSFB Mortgage-Backed Pass-Through Certificates 3.856%, 1M LIBOR + 1.350%, 11/25/35 (b)		472,072		168,252
DeutscheALT-A Securities Mortgage Loan Trust 2.676%, 1M LIBOR + 0.170%, 08/25/47 (b)		566,619		386,509
Collateralized Mortgage Obligations—(Continued)
DeutscheALT-A Securities, Inc. Alternate Loan Trust 2.822%, 1M LIBOR + 0.500%, 01/27/37 (144A) (b)		133,087		126,048
GreenPoint Mortgage Funding Trust 4.157%, 12M MTA + 2.000%, 03/25/36 (b)		199,586		188,502
GSR Mortgage Loan Trust 6.000%, 07/25/37		719,833		631,992
IndyMac INDX Mortgage Loan Trust 3.743%, 09/25/37 (b)		894,436		617,888
JPMorgan Alternative Loan Trust 2.716%, 1M LIBOR + 0.210%, 03/25/37 (b)		1,281,458		1,174,855
4.107%, 05/25/37 (b)		319,345		284,113
JPMorgan Mortgage Trust 6.500%, 08/25/36		284,062		208,070
LSTAR Securities Investment, Ltd. 3.849%, 1M LIBOR + 1.550%, 04/01/21 (144A) (b)		1,409,564		1,379,720
MASTR Resecuritization Trust 2.721%, 08/25/37 (144A) (b)		487,144		343,881
MCM Capital LLC Zero Coupon, 10/25/28 (m)		5,300,000		1,506,260
4.000%, 10/25/28		3,890,000		3,839,430
Merrill Lynch Mortgage Investors Trust 3.856%, 05/25/36 (b)		1,620,968		1,466,982
Mortgage Loan Resecuritization Trust 2.689%, 1M LIBOR + 0.340%, 04/16/36 (144A) (b)		3,845,419		3,359,481
Nomura Asset Acceptance Corp. Alternative Loan Trust 6.634%, 05/25/36		266,767		99,447
Seasoned Credit Risk Transfer Trust Zero Coupon, 07/25/56 (m)		835,092		58,012
1.236%, 07/25/56 (b) (c)		1,106,185		126,568
4.750%, 07/25/56 (b)		540,000		518,123
4.750%, 05/25/57 (b)		150,000		141,469
6.879%, 05/25/57 (b)		169,869		85,729
Structured Adjustable Rate Mortgage Loan Trust 3.790%, 04/25/36 (b)		379,034		312,945
3.960%, 04/25/47 (b)		1,075,390		829,206
Structured Asset Mortgage Investments Trust 2.696%, 1M LIBOR + 0.190%, 06/25/36 (b)		1,485,344		1,398,083
2.716%, 1M LIBOR + 0.210%, 05/25/46 (b)		273,901		230,406
2.736%, 1M LIBOR + 0.230%, 02/25/36 (b)		1,983,437		1,889,612
				60,983,117
Commercial Mortgage-Backed Securities—2.9%
AOA Mortgage Trust 3.010%, 12/13/29 (144A) (b)		460,000		448,961
AREIT Trust 3.290%, 1M LIBOR + 0.850%, 02/14/35 (144A) (b)		228,892		228,765
Ashford Hospitality Trust, Inc. 4.555%, 1M LIBOR + 2.100%, 04/15/35 (144A) (b)		640,000		630,413
Atrium Hotel Portfolio Trust 4.405%, 1M LIBOR + 1.950%, 12/15/36 (144A) (b)		1,540,000		1,520,828
5.505%, 1M LIBOR + 3.050%, 12/15/36 (144A) (b)		480,000		469,375
BAMLL Commercial Mortgage Securities Trust 3.596%, 04/14/33 (144A) (b)		250,000		236,440
3.606%, 08/14/34 (144A) (b)		2,470,000		2,227,098
3.955%, 1M LIBOR + 1.500%, 11/15/32 (144A) (b)		300,000		300,000
4.455%, 1M LIBOR + 2.000%, 11/15/32 (144A) (b)		630,000		630,000

See accompanying notes to financial statements.

BHFTII-30

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Commercial Mortgage-Backed Securities—(Continued)
Banc of America Commercial Mortgage Trust 0.630%, 02/15/50 (b) (c)		4,070,000	$	182,131
1.287%, 02/15/50 (144A) (b) (c)		2,000,000		172,440
5.482%, 01/15/49 (b)		142,151		142,534
Bancorp Commercial Mortgage Trust (The) 3.305%, 1M LIBOR + 0.850%, 01/15/33 (144A) (b)		640,252		634,662
BANK 4.217%, 08/15/61		530,000		548,919
Bayview Commercial Asset Trust 2.756%, 1M LIBOR + 0.250%, 10/25/36 (144A) (b)		243,388		229,597
2.806%, 1M LIBOR + 0.300%, 01/25/36 (144A) (b)		131,700		125,159
2.806%, 1M LIBOR + 0.300%, 10/25/36 (144A) (b)		247,658		234,213
2.866%, 1M LIBOR + 0.360%, 04/25/36 (144A) (b)		155,886		149,639
2.956%, 1M LIBOR + 0.450%, 01/25/36 (144A) (b)		98,043		93,687
4.006%, 1M LIBOR + 1.500%, 12/25/37 (144A) (b)		720,000		539,870
BB-UBS Trust 0.596%, 11/05/36 (144A) (b) (c)		85,480,000		2,835,064
4.026%, 11/05/36 (144A) (b)		330,000		311,111
BBCMS Mortgage Trust 3.177%, 1M LIBOR + 0.722%, 03/15/37 (144A) (b)		280,000		275,072
Bear Stearns Commercial Mortgage Securities Trust 5.465%, 01/12/45 (b)		268,375		269,840
Benchmark Mortgage Trust 4.208%, 07/15/51		400,000		415,613
BHMS Mortgage Trust 3.705%, 1M LIBOR + 1.250%, 07/15/35 (144A) (b)		780,000		776,143
4.355%, 1M LIBOR + 1.900%, 07/15/35 (144A) (b)		270,000		266,295
BSPRT Issuer, Ltd. 3.275%, 1M LIBOR + 0.820%, 10/15/34 (144A) (b)		67,760		67,668
BWAY Mortgage Trust 3.446%, 03/10/33 (144A)		1,495,000		1,458,998
3.454%, 03/10/33 (144A)		2,690,000		2,678,778
3.633%, 03/10/33 (144A)		600,000		583,693
BX Commercial Mortgage Trust 5.455%, 1M LIBOR + 3.000%, 11/15/35 (144A) (b)		4,423,400		4,376,424
BXP Trust 3.552%, 08/13/37 (144A) (b)		760,000		690,924
CCRESG Commercial Mortgage Trust 5.488%, 04/10/29 (144A) (b)		230,000		234,965
CD Mortgage Trust 3.631%, 02/10/50		350,000		350,628
5.648%, 10/15/48		422,795		434,483
CFCRE Commercial Mortgage Trust 0.728%, 05/10/58 (b) (c)		2,370,000		109,307
1.732%, 05/10/58 (b) (c)		2,516,207		236,808
CGDBB Commercial Mortgage Trust 3.245%, 1M LIBOR + 0.790%, 07/15/32 (144A) (b)		1,490,000		1,476,071
4.055%, 1M LIBOR + 1.600%, 07/15/32 (144A) (b)		1,110,000		1,092,012
4.605%, 1M LIBOR + 2.150%, 07/15/32 (144A) (b)		1,680,000		1,653,636
Citigroup Commercial Mortgage Trust 4.834%, 04/15/49 (b)		40,000		40,801
CLNS Trust 5.900%, 1M LIBOR + 3.500%, 06/11/32 (144A) (b)		665,000		659,735
Commercial Mortgage Pass-Through Certificates Mortgage Trust 0.060%, 02/10/35 (144A) (b) (c)		60,958,000		337,098
1.065%, 03/10/46 (b) (c)		25,113,101		714,458
Commercial Mortgage-Backed Securities—(Continued)
Commercial Mortgage Pass-Through Certificates Mortgage Trust 3.179%, 10/10/36 (144A) (b)		270,000		244,745
3.183%, 02/10/48		513,000		506,033
3.187%, 1M LIBOR + 0.800%, 08/13/27 (144A) (b)		700,000		699,394
3.550%, 07/15/47		550,000		553,456
3.685%, 05/10/48 (144A) (b)		730,000		721,050
3.796%, 08/10/47		540,000		550,768
3.977%, 05/10/47		1,394,000		1,434,823
3.987%, 1M LIBOR + 1.600%, 02/13/32 (144A) (b)		1,280,000		1,274,321
4.006%, 04/10/47		400,000		411,942
4.051%, 04/10/47		1,896,000		1,956,548
4.236%, 02/10/47 (b)		320,000		333,055
4.300%, 07/10/48 (b)		1,600,000		1,587,462
4.418%, 12/10/47 (b)		420,000		421,264
4.544%, 08/10/48 (b)		1,256,000		1,227,298
4.637%, 1M LIBOR + 2.250%, 02/13/32 (144A) (b)		550,000		548,640
5.637%, 1M LIBOR + 3.250%, 02/13/32 (144A) (b)		50,000		49,483
5.682%, 06/10/44 (144A) (b)		184,711		187,305
Commercial Mortgage Trust 3.685%, 05/10/48 (144A) (b)		1,740,000		1,718,876
Core Industrial Trust 3.077%, 02/10/34 (144A)		1,975,068		1,966,090
3.849%, 02/10/34 (144A) (b)		2,360,000		2,293,284
Credit Suisse First Boston Mortgage Securities Corp. 4.952%, 07/15/37 (b)		60,336		60,864
5.234%, 10/15/39 (144A) (b)		250,000		250,329
Credit Suisse Mortgage Capital Certificates Trust 3.405%, 1M LIBOR + 0.950%, 12/15/30 (144A) (b)		280,000		278,850
4.055%, 1M LIBOR + 1.600%, 11/15/33 (144A) (b)		201,070		201,570
CSAIL Commercial Mortgage Trust 0.135%, 11/15/50 (b) (c)		3,940,000		64,990
DBJPM Mortgage Trust 1.000%, 06/10/50 (b) (c)		2,060,000		128,907
DBUBS Mortgage Trust 3.452%, 10/10/34 (144A)		850,000		844,269
3.530%, 10/10/34 (144A) (b)		1,710,000		1,594,126
Eleven Madison Trust Mortgage Trust 3.555%, 09/10/35 (144A) (b)		440,000		442,528
GAHR Commercial Mortgage Trust 3.382%, 12/15/34 (144A) (b)		630,000		618,362
GPMT, Ltd. 3.379%, 1M LIBOR + 0.900%, 11/21/35 (144A) (b)		869,000		864,937
GS Mortgage Securities Corp. II 5.366%, 05/03/32 (144A)		840,000		934,846
GS Mortgage Securities Corp. Trust 2.856%, 05/10/34 (144A)		710,000		703,750
3.435%, 12/10/27 (144A) (b)		11,042,358		10,931,221
3.755%, 1M LIBOR + 1.300%, 07/15/32 (144A) (b)		80,000		79,121
3.955%, 1M LIBOR + 1.500%, 07/15/32 (144A) (b)		170,000		167,357
4.255%, 1M LIBOR + 1.800%, 07/15/32 (144A) (b)		70,000		68,918
4.805%, 1M LIBOR + 2.350%, 02/15/37 (144A) (b)		230,000		229,943
4.955%, 1M LIBOR + 2.500%, 07/15/32 (144A) (b)		30,000		29,503
GS Mortgage Securities Trust 3.000%, 08/10/50 (144A)		240,000		199,542
3.345%, 07/10/48		131,650		112,176
3.931%, 09/10/47		800,000		819,876

See accompanying notes to financial statements.

BHFTII-31

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Commercial Mortgage-Backed Securities—(Continued)
GS Mortgage Securities Trust 4.411%, 07/10/48 (b)		500,000	$	494,337
4.529%, 04/10/47 (b)		50,000		49,715
4.689%, 06/10/47 (144A) (b)		30,000		26,811
HMH Trust 3.062%, 07/05/31 (144A)		1,210,000		1,184,693
IMT Trust 3.478%, 06/15/34 (144A)		540,000		542,904
3.497%, 06/15/34 (144A) (b)		570,000		544,486
JPMBB Commercial Mortgage Securities Trust 0.805%, 05/15/48 (b) (c)		1,140,573		34,016
0.878%, 09/15/47 (b) (c)		1,521,122		58,610
3.775%, 08/15/47		550,000		558,549
3.801%, 09/15/47		220,000		223,645
4.117%, 12/15/48 (144A) (b)		300,000		283,137
JPMCC Commercial Mortgage Securities Trust 4.050%, 09/15/50		110,000		108,095
4.646%, 03/15/50 (144A) (b)		650,000		614,972
JPMDB Commercial Mortgage Securities Trust 0.750%, 12/15/49 (144A) (b) (c)		2,067,000		101,237
JPMorgan Chase Commercial Mortgage Securities Trust 0.513%, 04/15/46 (b) (c)		4,900,000		105,036
0.750%, 08/15/49 (144A) (b) (c)		5,300,000		240,257
0.798%, 12/15/49 (b) (c)		964,491		36,640
2.854%, 10/06/38 (144A) (b)		1,670,000		1,586,990
3.755%, 1M LIBOR + 1.300%, 06/15/45 (144A) (b)		130,000		132,681
4.241%, 01/15/49 (b)		970,000		904,628
Lehman Brothers Small Balance Commercial Mortgage Trust 2.756%, 1M LIBOR + 0.250%, 03/25/37 (144A) (b)		551,115		529,638
LSTAR Commercial Mortgage Trust 1.111%, 03/10/50 (144A) (b) (c)		890,408		41,895
Merrill Lynch Mortgage Trust 6.316%, 09/12/42 (144A) (b)		490,000		501,017
Morgan Stanley Bank of America Merrill Lynch Trust 1.187%, 12/15/47 (144A) (b) (c)		1,810,000		101,940
1.437%, 11/15/49 (b) (c)		1,094,056		86,417
3.060%, 10/15/48 (144A)		322,000		273,734
3.892%, 06/15/47		3,000,000		3,066,618
4.132%, 07/15/50 (144A) (b)		297,000		268,687
4.527%, 10/15/48 (b)		170,000		170,418
4.558%, 05/15/50 (b)		300,000		296,786
Morgan Stanley Capital Trust 2.202%, 06/15/50 (144A) (b) (c)		1,190,000		178,941
2.546%, 06/15/50 (144A)		1,510,000		1,152,998
3.446%, 07/13/29 (144A) (b)		540,000		517,141
4.031%, 05/15/48 (144A) (b)		110,000		98,315
4.031%, 05/15/48 (b)		150,000		147,092
4.177%, 07/15/51		470,000		484,901
4.281%, 06/15/50 (b)		339,000		326,435
4.405%, 1M LIBOR + 1.950%, 11/15/34 (144A) (b)		330,000		325,181
5.005%, 1M LIBOR + 2.550%, 07/15/35 (144A) (b)		640,000		629,592
5.055%, 1M LIBOR + 2.600%, 11/15/34 (144A) (b)		1,977,000		1,943,604
5.241%, 10/12/52 (b)		45,955		46,076
5.505%, 1M LIBOR + 3.050%, 11/15/34 (144A) (b)		610,000		601,625
Natixis Commercial Mortgage Securities Trust 3.257%, 1M LIBOR + 0.950%, 06/15/35 (144A) (b)		240,000		237,035
Commercial Mortgage-Backed Securities—(Continued)
Olympic Tower Mortgage Trust 0.379%, 05/10/39 (144A) (b) (c)		13,300,000		388,387
3.945%, 05/10/39 (144A) (b)		1,345,000		1,200,672
One Market Plaza Trust Zero Coupon, 02/10/32 (144A) (b) (c)		4,222,000		4
0.090%, 02/10/32 (144A) (b) (c)		21,110,000		92,251
Park Avenue Mortgage Trust 4.574%, 1M LIBOR + 2.119%, 09/15/34 (144A) (b)		1,750,000		1,714,766
Park Avenue Trust 0.149%, 06/05/37 (144A) (b) (c)	5,000,000		71,830
3.657%, 06/05/37 (144A) (b)		207,000		185,802
Prima Capital CRE Securitization, Ltd. 4.000%, 08/24/49 (144A)		260,000		256,658
Resource Capital Corp., Ltd. 3.255%, 1M LIBOR + 0.800%, 07/15/34 (144A) (b)		347,608		347,718
4.455%, 1M LIBOR + 2.000%, 07/15/34 (144A) (b)		331,911		325,559
UBS Commercial Mortgage Trust 1.010%, 12/15/51 (b) (c)		1,440,000		108,829
Velocity Commercial Capital Loan Trust 3.661%, 10/25/46 (b)		150,000		150,243
4.240%, 11/25/47 (144A) (b)		223,711		221,741
4.450%, 05/25/47 (144A) (b)		150,000		148,013
4.458%, 10/25/46 (b)		100,000		100,006
4.936%, 1M LIBOR + 2.430%, 06/25/45 (144A) (b)		43,149		43,274
5.000%, 11/25/47 (144A) (b)		130,756		129,387
5.350%, 05/25/47 (144A) (b)		150,000		150,456
5.498%, 10/25/46 (b)		140,000		142,853
7.226%, 10/25/46 (b)		160,000		165,151
Waldorf Astoria Boca Raton Trust 3.805%, 1M LIBOR + 1.350%, 06/15/29 (144A) (b)		1,590,000		1,586,892
Wells Fargo Commercial Mortgage Trust 0.763%, 05/15/51 (b) (c)		3,984,793		217,096
0.932%, 12/15/48 (b) (c)		1,308,820		63,056
1.265%, 08/15/49 (144A) (b) (c)		1,430,000		108,208
2.600%, 11/15/50 (144A) (b)		505,000		403,491
3.282%, 1M LIBOR + 0.850%, 12/13/31 (144A) (b)		490,000		487,679
3.453%, 07/15/50		449,000		440,462
3.599%, 12/15/48 (b)		35,000		31,913
3.718%, 12/15/48		190,000		192,124
3.749%, 06/15/36 (144A) (b)		270,000		272,938
3.809%, 12/15/48		630,000		643,605
4.355%, 09/15/50 (144A) (b)		150,000		135,185
4.612%, 1M LIBOR + 2.157%, 12/15/36 (144A) (b)		270,000		266,550
WF-RBS Commercial Mortgage Trust 3.405%, 1M LIBOR + 0.950%, 03/15/44 (144A) (b)		23,999		24,074
3.678%, 08/15/47		595,000		603,860
3.758%, 09/15/57 (b)		1,540,000		1,459,348
				103,139,784
Total Mortgage-Backed Securities (Cost $167,840,118)				164,122,901

See accompanying notes to financial statements.

BHFTII-32

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Foreign Government—2.6%

Security Description	Principal Amount*		Value
Municipal —0.0%
Provincia de Rio Negro 7.750%, 12/07/25 (144A)		600,000	$	420,006
Sovereign—2.6%
Argentina Bonar Bonds 8.000%, 10/08/20		1,272,000		1,164,040
8.750%, 05/07/24		1,255,133		1,170,412
Argentine Republic Government International Bonds 4.625%, 01/11/23		628,000		496,120
5.625%, 01/26/22		1,839,000		1,551,656
5.875%, 01/11/28 (f)		758,000		544,813
6.875%, 04/22/21		1,689,000		1,526,028
6.875%, 01/11/48 (f)		1,738,000		1,210,083
7.125%, 06/28/2117		1,020,000		729,300
7.625%, 04/22/46		1,259,000		912,146
Bonos de la Nacion Argentina con Ajuste por CER 4.000%, 03/06/20 (ARS) (n)		12,117,000		405,402
Brazilian Government International Bond 4.625%, 01/13/28 (f)		740,000		711,517
Colombia Government International Bond 3.875%, 04/25/27 (f)		9,097,000		8,687,635
Colombian TES 7.000%, 06/30/32 (COP)		6,598,000,000		2,004,242
7.500%, 08/26/26 (COP)		9,136,000,000		2,964,104
Dominican Republic International Bond 5.950%, 01/25/27		687,000		684,424
Ecuador Government International Bond 7.875%, 01/23/28		463,000		376,188
Egypt Government International Bonds 4.750%, 04/16/26 (144A) (EUR)		502,000		520,368
5.577%, 02/21/23 (144A)		348,000		329,786
5.750%, 04/29/20		1,166,000		1,175,183
6.125%, 01/31/22		592,000		580,799
7.903%, 02/21/48 (144A)		880,000		757,046
Hungary Government International Bond 5.375%, 03/25/24		3,500,000		3,746,050
Indonesia Government International Bond 4.100%, 04/24/28 (f)		2,460,000		2,393,368
Indonesia Treasury Bond 7.500%, 05/15/38 (IDR)		30,285,000,000		1,937,566
Mexican Bonos 7.500%, 06/03/27 (MXN)		18,052,300		853,178
7.750%, 11/23/34 (MXN)		33,471,800		1,544,658
7.750%, 11/13/42 (MXN)		43,000,000		1,932,049
8.500%, 11/18/38 (MXN)		42,000,000		2,057,026
10.000%, 11/20/36 (MXN)		20,000,000		1,120,063
Mexico Government International Bonds 3.750%, 01/11/28 (f)		1,936,000		1,812,115
4.150%, 03/28/27		23,125,000		22,359,794
Nigeria Government International Bond 9.248%, 01/21/49 (144A)		1,273,000		1,234,611
Panama Government International Bond 3.750%, 03/16/25		3,490,000		3,456,880
Peruvian Government International Bonds 4.125%, 08/25/27 (f)		1,233,000		1,273,073
7.350%, 07/21/25		2,900,000		3,523,500
Sovereign—(Continued)
Philippine Government International Bond 3.000%, 02/01/28		7,002,000		6,625,236
Republic of South Africa Government Bond 8.750%, 02/28/48 (ZAR)		15,570,000		963,473
Republic of South Africa Government International Bond 4.850%, 09/27/27 (f)		536,000		499,498
Russian Foreign Bond - Eurobond 4.250%, 06/23/27		800,000		760,557
Turkey Government International Bond 5.125%, 02/17/28		751,000		657,440
Uruguay Government International Bond 4.375%, 10/27/27		3,975,565		3,977,195
				91,228,622
Total Foreign Government (Cost $95,387,184)				91,648,628
Floating Rate Loans (o)—1.3%
Commercial Services—0.2%
Goldman Sachs Lending Partners, LLC Term Loan A, 4.272%, 1M LIBOR + 1.750%, 08/26/20 (i) (j)		1,504,182		1,504,182
Term Loan B, 4.474%, 1M LIBOR + 2.100%, 08/26/20 (i) (j)		3,665,118		3,665,118
				5,169,300
Distribution/Wholesale—0.3%
Chimera Special Holding LLC Term Loan, 4.347%, 1M LIBOR + 2.000%, 11/01/20 (k)		10,458,553		10,458,553
Diversified Financial Services—0.7%
Caliber Home Loans, Inc. Revolver, 5.988%, 3M LIBOR + 3.250%, 03/03/23 (k)		4,581,545		4,570,091
LSTAR Securities Financing Vehicle: Term Loan, 4.349%, 1M LIBOR + 2.000%, 04/01/21 (i) (j) (k)		11,518,159		11,477,845
Roundpoint Mortgage Servicing Corp. Term Loan, 5.724%, 3M LIBOR + 3.375%, 08/08/20 (i) (j) (k) (l)		8,397,567		8,397,567
				24,445,503
Entertainment—0.1%
Stars Group Holdings B.V. (The) Incremental Term Loan, 6.303%, 3M LIBOR + 3.500%, 07/10/25		1,405,574		1,365,666
Iron/Steel—0.0%
Samarco Mineracao S.A. Delayed Draw Term Loan, 12/31/18		543,000		399,105
Miscellaneous Manufacturing—0.0%
Gates Global LLC Term Loan B, 5.272%, 1M LIBOR + 2.750%, 04/01/24		118,776		113,189

See accompanying notes to financial statements.

BHFTII-33

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Floating Rate Loans (o)—(Continued)

Security Description	Shares/ Principal Amount*			Value
Pipelines—0.0%
AL Midcoast Holdings LLC Term Loan B, 8.303%, 3M LIBOR + 5.500%, 07/31/25		1,097,250		$	1,060,218
Retail—0.0%
Foundation Building Materials, LLC Term Loan B, 5.705%, 1M LIBOR + 3.250%, 08/13/25		1,175,000			1,117,719
Total Floating Rate Loans (Cost $44,415,088)					44,129,253
Escrow Shares—0.0%
Savings & Loans—0.0%
Washington Mutual Bank (i) (j)		5,027,000			1
Washington Mutual Bank (i) (j)		1,310,000			0
Washington Mutual Bank (i) (j)		2,440,000			0
Total Escrow Shares (Cost $0)					1
Short-Term Investments—3.5%
Foreign Government—3.2%
Japan Treasury Bill Zero Coupon, 01/21/19 (p)		12,245,750,000			111,733,796
Commercial Paper—0.2%
AT&T, Inc. 2.911%, 03/07/19 (p)		5,060,000			5,031,558
General Motors Financial Co., Inc. 3.690%, 03/27/19 (p)		3,450,000			3,423,832
					8,455,390
Repurchase Agreement—0.1%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $2,767,434; collateralized by U.S. Treasury Note at 2.875%, maturing 10/31/23, with a market value of $2,826,909.		2,767,249			2,767,249
Total Short-Term Investments (Cost $120,443,584)					122,956,435
Securities Lending Reinvestments (q)—2.5%
Certificates of Deposit—1.8%
Banco Del Estado De Chile New York 2.820%, 1M LIBOR + 0.350%, 05/20/19 (b)		1,000,000			999,979
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (b)		3,500,000			3,501,396
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (b)		3,500,000			3,499,668
Certificates of Deposit—(Continued)
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (b)		1,000,000	��		999,872
2.739%, 1M LIBOR + 0.270%, 07/19/19 (b)		2,000,000			1,999,188
China Construction Bank Corp. 2.550%, 01/07/19		3,000,000			3,000,000
Citibank N.A. 2.490%, 02/04/19		3,000,000			2,999,583
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (b)		1,000,000			1,000,003
Credit Agricole S.A. 2.500%, 02/12/19		2,000,000			1,999,660
Credit Industriel et Commercial Zero Coupon, 01/25/19		987,228			998,300
Credit Industriel et Commercial (NY) 2.629%, 1M LIBOR + 0.250%, 02/05/19 (b)		1,500,000			1,500,038
Credit Suisse AG 2.620%, 04/01/19		3,000,000			2,998,446
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (b)		2,000,000			2,000,012
Natixis S.A. New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (b)		1,000,000			999,370
Royal Bank of Canada New York 2.650%, 1M LIBOR + 0.250%, 01/11/19 (b)		2,500,000			2,500,020
2.665%, 1M LIBOR + 0.210%, 09/17/19 (b)		2,000,000			1,997,954
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (b)		3,000,000			2,999,754
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (b)		2,000,000			1,999,942
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (b)		5,000,000			4,998,165
Sumitomo Mitsui Banking Corp., New York 2.549%, 1M LIBOR + 0.200%, 04/03/19 (b)		1,000,030			999,704
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (b)		4,000,000			3,999,820
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (b)		5,000,000			4,995,240
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (b)		2,000,000			2,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (b)		5,000,000			5,004,337
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (b)		3,000,000			2,999,981
					62,990,432
Commercial Paper—0.4%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (b)		2,000,000			1,999,446
Banco Santander S.A. 2.740%, 02/07/19		2,482,494			2,492,720
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (b)		1,000,000			1,000,000
ING Funding LLC 2.725%, 3M LIBOR + 0.110%, 05/10/19 (b)		1,500,000			1,499,823
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (b)		4,000,000			4,000,980

See accompanying notes to financial statements.

BHFTII-34

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (q)—(Continued)

Security Description	Principal Amount*		Value
Commercial Paper—(Continued)
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (b)		2,000,000	$	1,999,920
				12,992,889
Repurchase Agreements—0.3%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $1,511,500; collateralized by various Common Stock with an aggregate market value of $1,650,275.		1,500,000		1,500,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $1,002,713; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $1,088,319.		1,000,000		1,000,000
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $3,022,540; collateralized by various Common Stock with an aggregate market value of $3,300,000.		3,000,000		3,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $5,339,821; collateralized by various Common Stock with an aggregate market value of $5,830,000.		5,300,000		5,300,000
				10,800,000
Total Securities Lending Reinvestments (Cost $86,791,567)				86,783,321
Total Purchased Options—0.2% (r) (Cost $6,613,154)				7,011,429
Total Investments—116.8% (Cost $4,167,701,267)				4,120,038,438
Unfunded Loan Commitments—(0.1)% (Cost $(2,241,504))				(2,241,504	)
Net Investments—116.7% (Cost $4,165,459,763)				4,117,796,934
Other assets and liabilities (net)—(16.7)%				(588,212,974	)
Net Assets—100.0%			$	3,529,583,960

*	Principal and notional amounts stated in U.S. dollars unless otherwise noted.
(a)	TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(b)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(c)	Interest only security.
(d)	All or a portion of the security was pledged as collateral against open reverse repurchase agreements. As of December 31, 2018, the value of securities pledged amounted to $99,626,842.
(e)	All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2018, the market value of securities pledged was $7,553,001.
(f)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $56,966,622 and the collateral received consisted of cash in the amount of $86,769,752. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(g)	Non-income producing; security is in default and/or issuer is in bankruptcy.
(h)	Payment-in-kind security for which part of the income earned may be paid as additional principal.
(i)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(j)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent 0.9% of net assets.
(k)	Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2018, the market value of restricted securities was $33,749,895, which is 1.0% of net assets. See details shown in the Restricted Securities table that follows.
(l)	Unfunded or partially unfunded loan commitments. The Portfolio may enter into certain credit agreements for which all or a portion may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion.
(m)	Principal only security.
(n)	Principal amount of security is adjusted for inflation.
(o)	Floating rate loans (“Senior Loans”) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will have an expected average life of approximately two to four years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are determined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.
(p)	The rate shown represents current yield to maturity.
(q)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(r)	For a breakout of open positions, see details shown in the Purchased Options table that follows.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $622,909,066, which is 17.6% of net assets.

See accompanying notes to financial statements.

BHFTII-35

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Restricted Securities	Acquisition Date		Principal Amount		Cost		Value
Ari Investments LLC, 4.480%, 01/06/25		12/14/17	$	1,023,181	$	1,023,181	$	1,023,181
Banco Espirito Santo S.A., 4.000%, 01/21/19		12/12/14		200,000		248,422		64,162
Caliber Home Loans, Inc., 5.988%, 04/24/21		06/27/18 - 12/13/18		4,581,545		4,581,546		4,570,091
Chimera Special Holding LLC, 4.347%, 10/04/19		02/15/18		10,458,553		10,458,899		10,458,553
LSTAR Securities Financing Vehicle, 4.349%, 04/01/21		04/10/18		11,518,159		11,487,682		11,477,845
Roundpoint Mortgage Servicing Corp., 5.724%, 08/08/20		08/27/18		6,156,063		6,156,042		6,156,063
							$	33,749,895

Reverse Repurchase Agreements

Counterparty	Interest Rate			Settlement Date		Maturity Date		Principal Amount			Net Closing Amount
Barclays Capital, Inc.		3.180	%		12/31/18		01/02/19		USD	27,608,125	$	27,608,125
BNP Paribas S.A.		3.120	%		12/31/18		01/02/19		USD	28,067,900		28,067,900
Merill Lynch Pierce Fenner & Smith, Inc.		3.200	%		12/31/18		01/02/19		USD	44,522,058		44,522,058
Total											$	100,198,083

Securities pledged as collateral against open reverse repurchase agreements are noted in the Schedule of Investments.

TBA Forward Sale Commitments

Security Description	Interest Rate			Maturity		Face Amount			Cost			Value
Fannie Mae 15 Yr. Pool		2.000	%		TBA	$	(5,677,000	)	$	(5,381,619	)	$	(5,433,970	)
Fannie Mae 15 Yr. Pool		2.500	%		TBA		(1,039,200	)		(1,015,686	)		(1,014,916	)
Fannie Mae 15 Yr. Pool		3.500	%		TBA		(11,483,000	)		(11,541,035	)		(11,623,063	)
Fannie Mae 15 Yr. Pool		4.000	%		TBA		(10,417,000	)		(10,602,553	)		(10,659,144	)
Fannie Mae 30 Yr. Pool		3.500	%		TBA		(53,000	)		(52,783	)		(53,007	)
Fannie Mae 30 Yr. Pool		3.500	%		TBA		(110,924,468	)		(109,765,638	)		(110,866,217	)
Fannie Mae 30 Yr. Pool		4.000	%		TBA		(81,796,000	)		(81,463,704	)		(83,408,037	)
Fannie Mae 30 Yr. Pool		4.500	%		TBA		(28,073,000	)		(29,000,571	)		(29,083,371	)
Fannie Mae 30 Yr. Pool		6.000	%		TBA		(2,002,000	)		(2,152,463	)		(2,150,489	)
Ginnie Mae I 30 Yr. Pool		4.500	%		TBA		(3,100,000	)		(3,202,687	)		(3,207,836	)
Ginnie Mae II 30 Yr. Pool		3.000	%		TBA		(1,756,000	)		(1,729,111	)		(1,723,692	)
Ginnie Mae II 30 Yr. Pool		3.000	%		TBA		(4,976,518	)		(4,868,094	)		(4,894,106	)
Totals									$	(260,775,944	)	$	(264,117,848	)

Forward Foreign Currency Exchange Contracts

Contracts to Buy		Counterparty	Settlement Date		In Exchange for			Unrealized Appreciation/ (Depreciation)
ARS	7,011,000	BNP		01/16/19		USD	180,000	$	2,813
ARS	3,586,500	CBNA		01/16/19		USD	90,000		3,519
ARS	6,951,600	CBNA		01/16/19		USD	180,000		1,264
ARS	9,994,400	CBNA		01/16/19		USD	260,000		606
ARS	3,591,000	DBAG		01/16/19		USD	90,000		3,636
ARS	3,591,000	DBAG		01/16/19		USD	90,000		3,636
ARS	14,378,400	DBAG		01/16/19		USD	360,000		14,920
ARS	3,592,908	BNP		03/07/19		USD	85,241		2,637
ARS	11,995,200	BNP		03/11/19		USD	288,000		4,008
BRL	1,398,258	CBNA		01/03/19		USD	360,000		771
BRL	15,291,505	CBNA		01/03/19		USD	3,937,000		8,431
BRL	1,379,160	GSI		01/03/19		USD	360,000		(4,156	)
BRL	1,815,887	GSI		01/03/19		USD	468,640		(115	)
BRL	1,823,876	GSI		01/03/19		USD	469,950		637
BRL	2,782,080	GSI		01/03/19		USD	717,993		(176	)

See accompanying notes to financial statements.

BHFTII-36

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Forward Foreign Currency Exchange Contracts—(Continued)

Contracts to Buy		Counterparty	Settlement Date		In Exchange for			Unrealized Appreciation/ (Depreciation)
BRL	7,572,976	GSI		01/03/19		USD	1,954,417	$	(479	)
BRL	7,744,379	GSI		01/03/19		USD	1,998,653		(490	)
BRL	1,819,411	GSI		02/04/19		USD	469,950		(1,362	)
BRL	2,787,480	GSI		02/04/19		USD	720,000		(2,086	)
BRL	7,587,675	GSI		02/04/19		USD	1,959,880		(5,679	)
CAD	10,305,481	TDB		03/20/19		USD	7,564,000		(1,743	)
CLP	482,655,600	BNP		01/16/19		USD	720,000		(24,359	)
CLP	482,655,600	BNP		01/16/19		USD	720,000		(24,359	)
CLP	743,526,144	DBAG		01/16/19		USD	1,111,200		(39,572	)
COP	1,533,085,000	BNP		01/11/19		USD	485,000		(13,120	)
COP	1,548,415,850	GSI		01/16/19		USD	485,000		(8,519	)
GBP	14,198,000	BBP		03/20/19		USD	18,029,033		135,136
IDR	40,869,465,000	BBP		01/18/19		USD	2,653,000		184,830
KRW	1,603,152,000	BOA		02/07/19		USD	1,440,000		(1,808	)
MXN	9,433,082	GSI		01/16/19		USD	469,950		9,188
RUB	59,149,400	BOA		01/16/19		USD	890,000		(41,889	)
TRY	2,873,041	JPMC		06/19/19		USD	536,503		(38,631	)
TWD	44,442,720	BNP		01/03/19		USD	1,445,762		141
ZAR	10,144,152	BNP		01/10/19		USD	720,000		(15,470	)
ZAR	12,818,142	NTC		01/16/19		USD	900,000		(10,412	)
ZAR	25,264,060	UBSA		01/16/19		USD	1,790,000		(36,657	)
Contracts to Deliver
ARS	1,601,200	GSI		01/16/19		USD	40,000		(1,752	)
ARS	15,801,482	JPMC		01/16/19		USD	410,000		(2,027	)
ARS	8,261,500	BNP		02/11/19		USD	205,000		(3,072	)
ARS	8,261,500	JPMC		02/11/19		USD	205,000		(3,072	)
BRL	15,291,505	CBNA		01/03/19		USD	3,946,398		967
BRL	1,398,258	CBNA		01/03/19		USD	360,859		88
BRL	7,744,379	GSI		01/03/19		USD	1,977,120		(21,043	)
BRL	7,572,976	GSI		01/03/19		USD	1,959,880		5,942
BRL	2,782,080	GSI		01/03/19		USD	720,000		2,183
BRL	1,823,876	GSI		01/03/19		USD	470,702		115
BRL	1,815,887	GSI		01/03/19		USD	469,950		1,425
BRL	1,379,160	GSI		01/03/19		USD	355,931		87
BRL	1,436,710	DBAG		01/16/19		USD	370,000		(346	)
CHF	3,684,394	CBNA		03/20/19		USD	3,782,000		6,602
CLP	612,314,739	BNP		01/16/19		USD	888,185		5,669
CLP	142,795,670	BNP		01/16/19		USD	213,015		7,207
CLP	6,703,100	CBNA		01/16/19		USD	10,000		339
COP	1,556,992,105	BNP		01/11/19		USD	485,000		5,761
COP	6,560,690,000	GSI		01/23/19		USD	1,986,884		(31,282	)
COP	7,500,000,000	JPMC		01/23/19		USD	2,268,603		(38,509	)
EUR	489,471	NIP		01/16/19		USD	559,528		(1,888	)
GBP	14,198,000	MSIP		03/20/19		USD	17,999,940		(164,229	)
IDR	31,991,482,407	BNP		01/16/19		USD	2,210,380		(11,464	)
IDR	39,123,791,000	JPMC		01/18/19		USD	2,653,000		(63,617	)
JPY	12,253,976,495	JPMC		01/22/19		USD	109,821,846		(2,113,398	)
JPY	78,858,000	CBNA		02/05/19		USD	698,719		(22,415	)
JPY	698,253,930	DBAG		02/05/19		USD	6,198,052		(187,286	)
JPY	698,253,930	DBAG		02/05/19		USD	6,185,835		(199,503	)
JPY	698,253,930	NAB		02/05/19		USD	6,162,150		(223,188	)
KRW	1,808,532,660	CBNA		01/16/19		USD	1,606,000		(15,445	)
KRW	1,590,912,000	MSIP		02/07/19		USD	1,440,000		12,789
MXN	35,838,876	CBNA		01/16/19		USD	1,780,000		(40,377	)
MXN	19,118,750	JPMC		01/16/19		USD	939,900		(31,206	)

See accompanying notes to financial statements.

BHFTII-37

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Forward Foreign Currency Exchange Contracts—(Continued)

Contracts to Deliver		Counterparty	Settlement Date		In Exchange for			Unrealized Appreciation/ (Depreciation)
MXN	19,118,750	JPMC		01/16/19		USD	939,900	$	(31,206	)
MXN	85,320,000	CBNA		01/23/19		USD	4,219,000		(109,789	)
MXN	74,360,000	CBNA		01/23/19		USD	3,710,579		(62,144	)
MXN	42,884,000	GSI		02/05/19		USD	2,125,017		(46,181	)
MXN	30,000,000	GSI		02/05/19		USD	1,469,933		(48,955	)
RUB	59,994,900	BOA		01/16/19		USD	890,000		29,766
TWD	44,442,720	BNP		01/03/19		USD	1,440,000		(5,903	)
ZAR	10,241,712	BNP		01/10/19		USD	720,000		8,694
ZAR	38,539,016	BNP		01/16/19		USD	2,680,000		5,366
ZAR	138,795	CBNA		01/16/19		USD	10,000		368
ZAR	10,000,000	BOA		01/23/19		USD	687,899		(5,512	)
ZAR	4,960,000	BOA		01/23/19		USD	341,348		(2,584	)
Cross Currency Contracts to Buy
CAD	4,279,613	BNP		03/20/19		EUR	2,725,000		(1,903	)
CAD	7,598,343	BNP		03/20/19		EUR	4,839,000		(4,338	)
Net Unrealized Depreciation								$	(3,295,175	)

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts			Notional Value				Value/ Unrealized Appreciation/ (Depreciation)
U.S. Treasury Note 2 Year Futures		03/29/19		1,588			USD	337,152,250		$	2,212,885
U.S. Treasury Note 5 Year Futures		03/29/19		3,346			USD	383,744,375			5,144,203
U.S. Treasury Note Ultra 10 Year Futures		03/20/19		590			USD	76,746,094			1,861,376
U.S. Treasury Ultra Long Bond Futures		03/20/19		932			USD	149,731,625			7,594,574
Futures Contracts—Short
90 Day Eurodollar Futures		12/14/20		(1,135	)		USD	(276,741,375	)		(1,150,924	)
Euro-Bund Futures		03/07/19		(326	)		EUR	(53,314,040	)		(342,709	)
Euro-Buxl 30 Year Bond Futures		03/07/19		(44	)		EUR	(7,947,280	)		(17,751	)
Japanese Government 10 Year Bond Futures		03/13/19		(18	)		JPY	(2,744,640,000	)		(121,581	)
U.S. Treasury Long Bond Futures		03/20/19		(83	)		USD	(12,118,000	)		(285,111	)
U.S. Treasury Note 10 Year Futures		03/20/19		(1,515	)		USD	(184,853,672	)		(3,123,444	)
Net Unrealized Appreciation										$	11,771,518

Purchased Options

Foreign Currency Options	Strike Price		Counterparty	Expiration Date		Number of Contracts		Notional Amount			Premiums Paid		Market Value		Unrealized Appreciation/ (Depreciation)
USD Put/BRL Call	BRL	3.600	DBAG		01/07/19		4,240,000		USD	4,240,000	$	11,617	$	4	$	(11,613)
USD Put/BRL Call	BRL	3.600	GSI		01/08/19		1,980,000		USD	1,980,000		26,019		4		(26,015)
USD Call/BRL Put	BRL	3.920	MSIP		01/10/19		1,440,000		USD	1,440,000		9,586		9,216		(370)
USD Put/BRL Call	BRL	3.740	MSIP		01/10/19		1,440,000		USD	1,440,000		27,213		1,146		(26,067)
USD Put/BRL Call	BRL	3.900	GSI		02/07/19		1,440,000		USD	1,440,000		29,513		30,183		670
USD Put/BRL Call	BRL	3.500	DBAG		02/07/19		3,074,000		USD	3,074,000		5,134		89		(5,045)
USD Put/KRW Call	KRW	1,110.000	CBNA		01/31/19		1,606,000		USD	1,606,000		16,196		13,394		(2,803)
USD Put/KRW Call	KRW	1,115.000	CBNA		02/07/19		1,440,000		USD	1,440,000		17,114		16,839		(275)
USD Put/ZAR Call	ZAR	13.500	JPMC		02/21/19		1,144,500		USD	1,144,500		15,327		4,959		(10,368)
USD Put/JPY Call	JPY	112.000	DBAG		04/03/19		25,202,000		USD	25,202,000		595,523		860,422		264,898
USD Call/JPY Put	JPY	112.000	DBAG		04/03/19		25,202,000		USD	25,202,000		640,383		139,695		(500,688)
Totals											$	1,393,625	$	1,075,951	$	(317,676)

See accompanying notes to financial statements.

BHFTII-38

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Purchased Options—(Continued)

Interest Rate Swaptions	Strike Rate			Counterparty		Floating Rate Index		Pay/ Receive Floating Rate		Expiration Date		Number of Contracts		Notional Amount			Premiums Paid		Market Value		Unrealized Appreciation/ (Depreciation)
Call - OTC - 10 Yr. IRS		2.750	%		CBNA		3M LIBOR		Pay		04/24/19		17,910,000		USD	17,910,000	$	52,387	$	260,696	$	208,309
Call - OTC - 10 Yr. IRS		2.750	%		CBNA		3M LIBOR		Pay		04/24/19		4,340,000		USD	4,340,000		14,973		64,047		49,075
Call - OTC - 10 Yr. IRS		2.700	%		BBP		3M LIBOR		Pay		06/10/19		9,314,000		USD	9,314,000		73,814		137,340		63,526
Call - OTC - 10 Yr. IRS		3.041	%		JPMC		3M LIBOR		Pay		04/27/38		52,790,000		USD	52,790,000		2,520,612		3,004,675		484,063
Put - OTC - 10 Yr. IRS		3.770	%		CBNA		3M LIBOR		Receive		04/24/19		11,125,000		USD	11,125,000		37,130		1,405		(35,725	)
Put - OTC - 10 Yr. IRS		3.041	%		JPMC		3M LIBOR		Receive		04/27/38		52,790,000		USD	52,790,000		2,520,612		2,467,315		(53,297	)
Totals																	$	5,219,528	$	5,935,478	$	715,951

Written Options

Foreign Currency Options	Strike Price			Counterparty		Expiration Date		Number of Contracts			Notional Amount				Premiums Received			Market Value			Unrealized Appreciation/ (Depreciation)
USD Call/BRL Put		BRL	3.900		MSIP		01/10/19		(1,440,000	)		USD	(1,440,000	)	$	(16,294	)	$	(11,900	)	$	4,394
USD Call/JPY Put		JPY	112.000		MSIP		04/03/19		(25,202,000	)		USD	(25,202,000	)		(455,148	)		(139,695	)		315,453
USD Call/KRW Put		KRW	1,140.000		JPMC		02/07/19		(720,000	)		USD	(720,000	)		(5,151	)		(2,208	)		2,943
USD Call/MXN Put		MXN	20.900		CBNA		01/11/19		(1,440,000	)		USD	(1,440,000	)		(29,606	)		(286	)		29,320
USD Put/BRL Call		BRL	3.600		MSIP		01/10/19		(1,440,000	)		USD	(1,440,000	)		(7,718	)		(26	)		7,692
USD Put/BRL Call		BRL	3.750		GSI		02/07/19		(2,160,000	)		USD	(2,160,000	)		(14,094	)		(12,826	)		1,268
USD Put/JPY Call		JPY	112.000		MSIP		04/03/19		(25,202,000	)		USD	(25,202,000	)		(457,920	)		(860,420	)		(402,500	)
USD Put/KRW Call		KRW	1,085.000		JPMC		02/07/19		(720,000	)		USD	(720,000	)		(2,258	)		(1,731	)		527
USD Put/KRW Call		KRW	1,085.000		CBNA		02/07/19		(1,440,000	)		USD	(1,440,000	)		(4,284	)		(3,462	)		822
Totals															$	(992,473	)	$	(1,032,554	)	$	(40,081	)

Interest Rate Swaptions	Strike Rate			Counterparty	Floating Rate Index	Pay/ Receive Floating Rate		Expiration Date		Number of Contracts			Notional Amount				Premiums Received			Market Value			Unrealized Appreciation/ (Depreciation)
Call - OTC - 2 Yr. IRS		2.750	%	CBNA	3M LIBOR		Receive		10/16/20		(141,750,000	)		USD	(141,750,000	)	$	(602,438	)	$	(1,559,009	)	$	(956,571	)
Put - OTC - 2 Yr. IRS		3.750	%	CBNA	3M LIBOR		Pay		10/16/20		(141,750,000	)		USD	(141,750,000	)		(552,825	)		(173,304	)		379,521
Totals																	$	(1,155,263	)	$	(1,732,313	)	$	(577,050	)

Swap Agreements

OTC Cross—Currency Swaps

Receive	Pay	Maturity Date(a)		Counterparty	Notional Amount of Currency Received			Notional Amount of Currency Delivered			Market Value			Upfront Premium (Received)			Unrealized (Depreciation)
Floating rate equal to 3M USD-LIBOR plus 0.000% based on the notional amount of currency delivered	Fixed rate equal to 16.770% based on the notional amount of currency received		06/19/24	JPMC		USD	536,503		TRY	2,873,041	$	(28,781	)	$	(489	)	$	(28,292	)

(a) At the maturity date, the notional amount of the the currency received will be exchanged back for the notional amount of the currency delivered.

OTC Interest Rate Swaps

Pay/Receive Floating Rate

Floating Rate Index

Payment Frequency

Fixed Rate

Payment Frequency

Maturity Date

Counterparty

Notional Amount

Market Value

Upfront Premium Paid/ (Received)

Unrealized Appreciation/ (Depreciation)(1)

Pay

1-Day CDI

Maturity

7.420

%

Maturity

01/04/21

CSI

BRL

25,376,156

$

11,365

$

—

$

11,365

Pay

1-Day CDI

Maturity

7.430

%

Maturity

01/04/21

JPMC

BRL

10,846,585

4,592

—

4,592

Pay

1-Day CDI

Maturity

7.460

%

Maturity

01/04/21

BOA

BRL

14,557,259

8,135

—

8,135

See accompanying notes to financial statements.

BHFTII-39

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

OTC Interest Rate Swaps—(Continued)

Pay/Receive Floating Rate	Floating Rate Index		Payment Frequency		Fixed Rate			Payment Frequency		Maturity Date		Counterparty	Notional Amount			Market Value			Upfront Premium Paid/ (Received)		Unrealized Appreciation/ (Depreciation)(1)
Pay		1-Day CDI		Maturity		7.479	%		Maturity		01/04/21	BOA		BRL	50,780,000	$	32,539		$	—	$	32,539
Pay		1-Day CDI		Maturity		8.531	%		Maturity		01/02/23	CBNA		BRL	29,110,000		22,227			—		22,227
Pay		28-Day TIIE		Monthly		6.270	%		Monthly		12/05/25	BOA		MXN	2,209,451		(14,337	)		—		(14,337	)
Pay		28-Day TIIE		Monthly		6.325	%		Monthly		07/17/25	CBNA		MXN	19,973,500		(120,321	)		—		(120,321	)
Pay		28-Day TIIE		Monthly		6.330	%		Monthly		08/06/25	CBNA		MXN	59,593,000		(361,047	)		—		(361,047	)
Receive		28-Day TIIE		Monthly		6.307	%		Monthly		08/11/25	DBAG		MXN	74,533,884		456,713			—		456,713
Receive		28-Day TIIE		Monthly		6.310	%		Monthly		08/11/25	BOA		MXN	20,079,000		122,889			—		122,889
Receive		28-Day TIIE		Monthly		6.310	%		Monthly		08/11/25	BOA		MXN	20,079,000		122,889			—		122,889
Totals																$	285,644		$	—	$	285,644

Centrally Cleared Interest Rate Swaps

Pay/Receive Floating Rate	Floating Rate Index		Payment Frequency		Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Pay		12M UKRPI		Maturity		3.570	%		Maturity		11/15/28		GBP	11,530,000	$	26,294		$	(5,202	)	$	31,496
Pay		28-Day TIIE		Monthly		6.320	%		Monthly		07/17/25		MXN	40,086,000		(242,421	)		—			(242,421	)
Pay		28-Day TIIE		Monthly		8.205	%		Monthly		10/07/20		MXN	92,528,424		(33,550	)		73			(33,623	)
Pay		28-Day TIIE		Monthly		8.206	%		Monthly		10/07/20		MXN	188,281,000		(68,075	)		148			(68,223	)
Pay		3M LIBOR		Quarterly		2.131%			Semi-Annually		08/25/25		USD	1,285,000		(38,985	)		—			(38,985	)
Pay		3M LIBOR		Quarterly		3.348%			Semi-Annually		04/26/29		USD	1,802,000		95,859			37			95,822
Pay		6M EURIBOR		Semi-Annually		0.242%			Annually		12/14/21		EUR	77,890,000		112,463			3,806			108,657
Pay		6M EURIBOR		Semi-Annually		0.323%			Annually		11/16/21		EUR	156,876,000		411,642			2,938			408,704
Pay		6M EURIBOR		Semi-Annually		0.375%			Annually		11/09/21		EUR	155,836,000		513,007			847			512,160
Pay		6M EURIBOR		Semi-Annually		0.380%			Annually		11/09/21		EUR	155,836,000		521,988			(4,490	)		526,478
Pay		6M EURIBOR		Semi-Annually		0.815%			Annually		02/15/28		EUR	36,200,000		285,712			904			284,808
Receive		28-Day TIIE		Monthly		7.105%			Monthly		10/14/22		MXN	48,327,742		118,680			47			118,633
Receive		28-Day TIIE		Monthly		7.110%			Monthly		10/14/22		MXN	36,666,258		89,736			35			89,701
Receive		28-Day TIIE		Monthly		7.361%			Monthly		01/28/19		MXN	300,263,934		14,058			—			14,058
Receive		3M LIBOR		Semi-Annually		2.272%			Quarterly		09/11/25		USD	955,000		21,017			—			21,017
Receive		3M LIBOR		Semi-Annually		2.855%			Quarterly		12/24/28		USD	712,000		(7,465	)		15			(7,480	)
Receive		3M LIBOR		Semi-Annually		2.915%			Quarterly		08/23/26		USD	110,000		(1,981	)		2			(1,983	)
Receive		3M LIBOR		Semi-Annually		2.932%			Quarterly		06/12/29		USD	2,887,000		(46,755	)		59			(46,814	)
Receive		3M LIBOR		Semi-Annually		3.156%			Quarterly		10/03/28		USD	1,279,000		(47,314	)		26			(47,340	)
Receive		3M LIBOR		Semi-Annually		3.232%			Quarterly		04/26/29		USD	621,000		(26,707	)		13			(26,720	)
Receive		3M LIBOR		Semi-Annually		3.264%			Quarterly		04/26/29		USD	2,560,000		(117,293	)		52			(117,345	)
Receive		6M LIBOR		Semi-Annually		1.335%			Semi-Annually		12/10/21		GBP	71,115,000		(7,442	)		(168	)		(7,274	)
Receive		6M LIBOR		Semi-Annually		1.425%			Semi-Annually		11/16/21		GBP	143,235,000		(182,567	)		3,026			(185,593	)
Receive		6M LIBOR		Semi-Annually		1.543%			Semi-Annually		11/15/22		GBP	72,290,000		(119,811	)		1,705			(121,516	)
Receive		6M LIBOR		Semi-Annually		1.550%			Semi-Annually		11/09/21		GBP	282,965,000		(807,462	)		34,731			(842,193	)
Receive		6M LIBOR		Semi-Annually		1.583%			Semi-Annually		11/21/28		GBP	15,288,702		(284,477	)		2,363			(286,840	)
Receive		6M LIBOR		Semi-Annually		1.660%			Semi-Annually		11/08/22		GBP	71,766,000		(224,484	)		7,704			(232,188	)
Receive		6M LIBOR		Semi-Annually		1.670%			Semi-Annually		11/08/22		GBP	71,766,000		(233,320	)		17,395			(250,715	)
Totals															$	(279,653	)	$	66,066		$	(345,719	)

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate		Payment Frequency		Maturity Date	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premiums Paid		Unrealized Appreciation
CDX.NA. HY.31.V3		5.000%		Quarterly	12/20/23		4.505%		USD	17,570,000	$	350,223	$	184,245	$	165,978

See accompanying notes to financial statements.

BHFTII-40

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

OTC Credit Default Swaps on Sovereign Issues—Buy Protection (a)

Reference Obligation	Fixed Deal (Pay) Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium Paid/(Received)		Unrealized Appreciation/ (Depreciation)
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	1,472,000	$	69,248	$	64,892	$	4,356
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	1,471,000		69,201		64,848		4,353
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	868,720		40,867		39,811		1,056
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		31,700		2,924
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		31,856		2,768
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		32,951		1,673
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		32,132		2,492
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		32,132		2,492
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		32,132		2,492
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		32,760		1,864
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	736,000		34,624		32,760		1,864
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	735,280		34,590		33,852		738
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	735,000		34,577		31,657		2,920
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	735,000		34,577		32,088		2,489
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	BBP		2.051%		USD	735,000		34,577		32,088		2,489
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	CBNA		2.051%		USD	8,843,193		416,013		769,298		(353,285)
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	GSI		2.051%		USD	3,050,000		143,482		258,895		(115,413)
Brazil Government International Bond 4.250%, due 01/07/25		(1.000%)		Quarterly	12/20/23	GSI		2.051%		USD	504,000		23,710		22,380		1,330
Mexico Government International Bond 7.500%, due 04/08/33		(1.000%)		Quarterly	06/20/20	JPMC		0.885%		USD	3,824,276		(6,369)		33,406		(39,775)
Mexico Government International Bond 7.500%, due 04/08/33		(1.000%)		Quarterly	09/20/20	BOA		0.912%		USD	3,824,276		(5,696)		50,241		(55,937)
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	709,000		17,647		15,714		1,933
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	709,000		17,647		15,714		1,933
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	616,000		15,333		4,687		10,646
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	616,000		15,333		4,961		10,372
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	616,000		15,333		4,961		10,372
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	615,000		15,308		4,953		10,355
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	582,000		14,486		12,899		1,587
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BNP		1.549%		USD	449,000		11,176		4,301		6,875

See accompanying notes to financial statements.

BHFTII-41

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

OTC Credit Default Swaps on Sovereign Issues—Buy Protection (a)—(Continued)

Reference Obligation	Fixed Deal (Pay) Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium Paid/(Received)		Unrealized Appreciation/ (Depreciation)
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BBP		1.549%		USD	1,386,000	$	34,498	$	10,536	$	23,962
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BBP		1.549%		USD	1,235,000		30,740		9,663		21,077
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	BBP		1.549%		USD	617,000		15,357		4,690		10,667
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	2,400,000		59,738		52,482		7,256
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	1,880,000		46,794		18,050		28,744
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	1,120,000		27,878		10,753		17,125
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	853,081		21,234		20,131		1,103
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	847,845		21,103		15,130		5,973
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	708,000		17,623		3,967		13,656
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	707,000		17,598		13,550		4,048
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	707,000		17,598		15,406		2,192
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	706,000		17,573		13,995		3,578
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	706,000		17,573		16,002		1,571
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	606,000		15,084		3,260		11,824
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	606,000		15,084		3,531		11,553
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	601,000		14,959		4,435		10,524
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	CBNA		1.549%		USD	590,000		14,685		3,569		11,116
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	DBAG		1.549%		USD	575,000		14,312		5,636		8,676
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	DBAG		1.549%		USD	574,000		14,287		5,626		8,661
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	MSIP		1.549%		USD	589,000		14,661		4,874		9,787
Mexico Government International Bond 4.150%, due 03/28/27		(1.000%)		Quarterly	12/20/23	MSIP		1.549%		USD	406,000		10,106		4,167		5,939
Philippines Government International Bond 10.625%, due 03/16/25		(1.000%)		Quarterly	12/20/23	BNP		0.866%		USD	5,396,000		(33,207)		(25,366)		(7,841)
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	BOA		1.568%		USD	428,000		11,022		4,687		6,335
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	BBP		1.568%		USD	721,000		18,567		13,821		4,746
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	BBP		1.568%		USD	720,000		18,542		13,802		4,740
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	CBNA		1.568%		USD	704,000		18,130		13,188		4,942
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	CBNA		1.568%		USD	704,000		18,130		14,270		3,860
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	CBNA		1.568%		USD	704,000		18,129		13,497		4,632

See accompanying notes to financial statements.

BHFTII-42

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

OTC Credit Default Swaps on Sovereign Issues—Buy Protection (a)—(Continued)

Reference Obligation	Fixed Deal (Pay) Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium Paid/(Received)		Unrealized Appreciation/ (Depreciation)
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	CBNA		1.568%		USD	703,000	$	18,104	$	13,942	$	4,162
Republic of Colombia 10.375%, due 01/23/33		(1.000%)		Quarterly	12/20/23	CBNA		1.568%		USD	589,000		15,168		4,504		10,664
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	BNP		1.568%		USD	305,289		7,862		5,171		2,691
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	BNP		1.568%		USD	274,424		7,067		4,286		2,781
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	CBNA		1.568%		USD	225,000		5,794		4,214		1,580
Republic of Colombia 10.375%, due 01/28/33		(1.000%)		Quarterly	12/20/23	DBAG		1.568%		USD	719,000		18,516		13,783		4,733
Turkey Government International Bond 11.280%, due 01/15/30		(1.000%)		Quarterly	12/20/23	MSIP		3.591%		USD	251,800		27,747		28,227		(480)
Totals												$	1,916,088	$	2,121,548	$	(205,460)

OTC Credit Default Swaps on Sovereign Issues—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate		Payment Frequency	Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium (Received)		Unrealized Appreciation
Mexico Government International Bond 7.500%, due 04/08/33		1.000%	Quarterly	06/20/20	BOA		0.885%		USD	3,824,276	$	6,368	$	(38,756)	$	45,124
Mexico Government International Bond 7.500%, due 04/08/33		1.000%	Quarterly	09/20/20	JPMC		0.912%		USD	3,824,276		5,696		(43,741)		49,437
Totals											$	12,064	$	(82,497)	$	94,561

OTC Credit Default Swaps on Credit Indices—Buy Protection (a)

Reference Obligation	Fixed Deal (Pay) Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium Paid/(Received)		Unrealized Appreciation/ (Depreciation)
CMBX.NA.A.V9		(2.000%)		Monthly	09/17/58	CBNA		2.703%		USD	510,000	$	20,695	$	10,212	$	10,483
CMBX.NA.A.V9		(2.000%)		Monthly	09/17/58	CSI		2.703%		USD	600,000		24,347		10,952		13,395
CMBX.NA.A.V9		(2.000%)		Monthly	09/17/58	CSI		2.703%		USD	510,000		20,695		9,582		11,113
CMBX.NA.A.V9		(2.000%)		Monthly	09/17/58	CSI		2.703%		USD	481,000		19,518		8,172		11,346
CMBX.NA.A.V9		(2.000%)		Monthly	09/17/58	GSI		2.703%		USD	260,000		10,550		5,203		5,347
CMBX.NA.AAA.V6		(0.500%)		Monthly	05/11/63	DBAG		0.314%		USD	1,670,000		(10,206)		242		(10,448)
CMBX.NA.AAA.V6		(0.500%)		Monthly	05/11/63	DBAG		0.314%		USD	2,340,000		(14,301)		(883)		(13,418)
CMBX.NA.AAA.V6		(0.500%)		Monthly	05/11/63	DBAG		0.314%		USD	2,680,000		(16,379)		745		(17,124)
CMBX.NA.AAA.V9		(0.500%)		Monthly	09/17/58	CSI		0.561%		USD	1,610,000		6,032		19,805		(13,773)
CMBX.NA.AAA.V9		(0.500%)		Monthly	09/17/58	DBAG		0.561%		USD	1,280,000		4,795		15,972		(11,177)
CMBX.NA.AAA.V9		(0.500%)		Monthly	09/17/58	MSIP		0.561%		USD	1,960,000		7,343		26,423		(19,080)
CMBX.NA.AAA.V9		(0.500%)		Monthly	09/17/58	MSIP		0.561%		USD	1,090,000		4,084		13,409		(9,325)
CMBX.NA.AAA.V9		(0.500%)		Monthly	09/17/58	MSIP		0.561%		USD	900,000		3,372		11,071		(7,699)
CMBX.NA.BBB-.V6		(3.000%)		Monthly	05/11/63	JPMC		8.287%		USD	340,000		54,828		34,298		20,530
Totals												$	135,373	$	165,203	$	(29,830)

See accompanying notes to financial statements.

BHFTII-43

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

OTC Credit Default Swaps on Credit Indices—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium (Received)		Unrealized Appreciation/ (Depreciation)
CMBX.NA.A.V10		2.000%		Monthly	11/17/59	DBAG		2.656%		USD	660,000	$	(28,104)	$	(30,601)	$	2,497
CMBX.NA.A.V10		2.000%		Monthly	11/17/59	DBAG		2.656%		USD	1,310,000		(55,782)		(59,736)		3,954
CMBX.NA.A.V8		2.000%		Monthly	10/17/57	GSI		2.743%		USD	670,000		(25,020)		(38,377)		13,357
CMBX.NA.A.V8		2.000%		Monthly	10/17/57	MSIP		2.743%		USD	190,000		(7,095)		(22,074)		14,979
CMBX.NA.AAA.V7		0.500%		Monthly	01/17/47	CSI		0.375%		USD	5,000,000		27,778		(156,398)		184,176
CMBX.NA.AM.V4		0.500%		Monthly	02/17/51	DBAG		6.842%		USD	2,370,000		(10,369)		(359,977)		349,608
CMBX.NA.BBB-.V10		3.000%		Monthly	11/17/59	JPMC		4.924%		USD	40,000		(4,601)		(3,575)		(1,026)
CMBX.NA.BBB-.V6		3.000%		Monthly	05/11/63	CSI		8.287%		USD	340,000		(54,828)		(28,925)		(25,903)
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	CSI		5.285%		USD	1,056,000		(128,238)		(94,658)		(33,580)
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	DBAG		5.285%		USD	718,000		(87,192)		(88,116)		924
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	DBAG		5.285%		USD	860,000		(104,436)		(94,404)		(10,032)
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	JPMC		5.285%		USD	272,000		(33,031)		(24,444)		(8,587)
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	MSIP		5.285%		USD	21,000		(2,550)		(2,619)		69
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	MSIP		5.285%		USD	290,000		(35,217)		(37,644)		2,427
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	MSIP		5.285%		USD	320,000		(38,860)		(32,777)		(6,083)
CMBX.NA.BBB-.V9		3.000%		Monthly	09/17/58	MSIP		5.285%		USD	500,000		(60,719)		(53,964)		(6,755)
Totals												$	(648,264)	$	(1,128,289)	$	480,025

Securities in the amount of $ 1,022,842 and cash in the amount of $110,000 have been received at the custodian bank as collateral for OTC swap contracts.

(a)	If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(b)	Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c)	The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(d)	If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(1)	There is no upfront payment premium paid or (received) therefore Market Value equals Unrealized Appreciation/(Depreciation).

Glossary of Abbreviations

Counterparties

(BBP)—	Barclays Bank plc
(BNP)—	BNP Paribas S.A.
(BOA)—	Bank of America N.A.
(CBNA)—	Citibank N.A.
(CSI)—	Credit Suisse International
(DBAG)—	Deutsche Bank AG
(GSI)—	Goldman Sachs International
(JPMC)—	JPMorgan Chase Bank N.A.
(MSIP)—	Morgan Stanley & Co. International plc
(NAB)—	National Australia Bank Ltd.
(NIP)—	Nomura International plc
(NTC)—	Northern Trust Co.
(TDB)—	Toronto Dominion Bank
(UBSA)—	UBS AG

Currencies

(ARS)—	Argentine Peso
(BRL)—	Brazilian Real
(CAD)—	Canadian Dollar
(CHF)—	Swiss Franc
(CLP)—	Chilean Peso
(COP)—	Colombian Peso
(EUR)—	Euro
(GBP)—	British Pound
(IDR)—	Indonesian Rupiah
(JPY)—	Japanese Yen
(KRW)—	South Korean Won
(MXN)—	Mexican Peso
(RUB)—	Russian Ruble
(TRY)—	Turkish Lira
(TWD)—	Taiwanese Dollar
(USD)—	United States Dollar
(ZAR)—	South African Rand

See accompanying notes to financial statements.

BHFTII-44

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Glossary of Abbreviations—(Continued)

Index Abbreviations

(BADLAR)—	Buenos Aires Deposits of Large Amount Rate Index
(CDI)—	Brazil Interbank Deposit Rate
(CDX.NA.HY)—	Markit North America High Yield CDS Index
(CMBX.NA.A)—	Markit North America A Rated CMBS Index
(CMBX.NA.AAA)—	Markit North America AAA Rated CMBS Index
(CMBX.NA.AM)—	Markit North America Mezzanine AAA Rated CMBS Index
(CMBX.NA.BBB-)—	Markit North AmericaBBB- Rated CMBS Index
(CMT)—	Constant Maturity Treasury Index
(EURIBOR)—	Euro Interbank Offered Rate
(FEDEFF PRV)—	Effective Federal Funds Rate
(H15)—	U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index
(ICE)—	Intercontinental Exchange, Inc.
(LIBOR)—	London Interbank Offered Rate
(MTA)—	Monthly Treasury Average Index
(TIIE)—	Mexican Interbank Equilibrium Interest Rate
(UKRPI)—	United Kingdom Retail Price Index

Other Abbreviations

(ACES)—	Alternative Credit Enhancement Securities
(CDO)—	Collateralized Debt Obligation
(CLO)—	Collateralized Loan Obligation
(CMO)—	Collateralized Mortgage Obligation
(IRS)—	Interest Rate Swap
(REMIC)—	Real Estate Mortgage Investment Conduit

See accompanying notes to financial statements.

BHFTII-45

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1			Level 2			Level 3		Total
Total U.S. Treasury & Government Agencies*	$	—		$	1,703,709,560		$	—	$	1,703,709,560
Total Corporate Bonds & Notes*		—			1,261,475,089			—		1,261,475,089
Asset-Backed Securities
Asset-Backed - Home Equity		—			34,776,724			—		34,776,724
Asset-Backed - Manufactured Housing		—			16,361,602			—		16,361,602
Asset-Backed - Other		—			299,822,798			9,336,702		309,159,500
Asset-Backed - Student Loan		—			16,842,677			—		16,842,677
Total Asset-Backed Securities		—			367,803,801			9,336,702		377,140,503
Total Municipals		—			261,061,318			—		261,061,318
Total Mortgage-Backed Securities*		—			164,122,901			—		164,122,901
Total Foreign Government*		—			91,648,628			—		91,648,628
Floating Rate Loans
Commercial Services		—			—			5,169,300		5,169,300
Distribution/Wholesale		—			10,458,553			—		10,458,553
Diversified Financial Services (Less Unfunded Loan Commitments of $2,241,504)		—			4,570,091			17,633,908		22,203,999
Entertainment		—			1,365,666			—		1,365,666
Iron/Steel		—			399,105			—		399,105
Miscellaneous Manufacturing		—			113,189			—		113,189
Pipelines		—			1,060,218			—		1,060,218
Retail		—			1,117,719			—		1,117,719
Total Floating Rate Loans (Less Unfunded Loan Commitments)		—			19,084,541			22,803,208		41,887,749
Total Escrow Shares*		—			—			1		1
Total Short-Term Investments*		—			122,956,435			—		122,956,435
Total Securities Lending Reinvestments*		—			86,783,321			—		86,783,321
Total Purchased Options*		—			7,011,429			—		7,011,429
Total Investments	$	—		$	4,085,657,023		$	32,139,911	$	4,117,796,934
Collateral for Securities Loaned (Liability)	$	—		$	(86,769,752	)	$	—	$	(86,769,752	)
Total Reverse Repurchase Agreements (Liability)	$	—		$	(100,198,083	)	$	—	$	(100,198,083	)
TBA Forward Sales Commitments	$	—		$	(264,117,848	)	$	—	$	(264,117,848	)
Forward Contracts
Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)	$	—		$	469,541		$	—	$	469,541
Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)		—			(3,764,716	)		—		(3,764,716	)
Total Forward Contracts	$	—		$	(3,295,175	)	$	—	$	(3,295,175	)
Futures Contracts
Futures Contracts (Unrealized Appreciation)	$	16,813,038		$	—		$	—	$	16,813,038
Futures Contracts (Unrealized Depreciation)		(5,041,520	)		—			—		(5,041,520	)
Total Futures Contracts	$	11,771,518		$	—		$	—	$	11,771,518

See accompanying notes to financial statements.

BHFTII-46

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2			Level 3		Total
Written Options
Foreign Currency Written Options at Value	$	—	$	(1,032,554	)	$	—	$	(1,032,554	)
Interest Rate Swaptions at Value		—		(1,732,313	)		—		(1,732,313	)
Total Written Options	$	—	$	(2,764,867	)	$	—	$	(2,764,867	)
Centrally Cleared Swap Contracts
Centrally Cleared Swap Contracts (Unrealized Appreciation)	$	—	$	2,377,512		$	—	$	2,377,512
Centrally Cleared Swap Contracts (Unrealized Depreciation)		—		(2,557,253	)		—		(2,557,253	)
Total Centrally Cleared Swap Contracts	$	—	$	(179,741	)	$	—	$	(179,741	)
OTC Swap Contracts
OTC Swap Contracts at Value (Assets)	$	—	$	2,958,810		$	—	$	2,958,810
OTC Swap Contracts at Value (Liabilities)		—		(1,286,686	)		—		(1,286,686	)
Total OTC Swap Contracts	$	—	$	1,672,124		$	—	$	1,672,124

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2018 is not presented.

Transfers from Level 3 to Level 2 in the amount of $930,082 were due to the resumption of trading activity which resulted in the availability of significant observable inputs.

See accompanying notes to financial statements.

BHFTII-47

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b) (c)	$	4,117,796,934
Cash		3,108,570
Cash denominated in foreign currencies (d)		31,189,428
Cash collateral (e)		7,409,458
OTC swap contracts at market value (f)		2,958,810
Unrealized appreciation on forward foreign currency exchange contracts		469,541
Receivable for:
Investments sold		4,881,926
TBA securities sold (g)		676,199,519
Fund shares sold		101,626
Principal paydowns		920
Interest		25,370,077
Variation margin on futures contracts		1,078,668
Interest on OTC swap contracts		150,717
Prepaid expenses		9,995
Other assets		2,852
Total Assets		4,870,729,041
Liabilities
Written options at value (h)		2,764,867
TBA forward sales commitments, at value		264,117,848
Reverse repurchase agreements		100,198,083
Cash collateral (i)		6,730,000
OTC swap contracts at market value (j)		1,286,686
Unrealized depreciation on forward foreign currency exchange contracts		3,764,716
Collateral for securities loaned		86,769,752
Payables for:
Investments purchased		2,308,539
TBA securities purchased (g)		865,645,065
Fund shares redeemed		4,775,944
Interest on reverse repurchase agreements		8,829
Foreign taxes		111
Variation margin on centrally cleared swap contracts		13,058
Interest on forward sales commitments		362,487
Interest on OTC swap contracts		160,475
Accrued Expenses:
Management fees		1,008,411
Distribution and service fees		110,037
Deferred trustees’ fees		111,638
Other expenses		1,008,535
Total Liabilities		1,341,145,081
Net Assets	$	3,529,583,960
Net Assets Consist of:
Paid in surplus	$	3,613,553,720
Distributable earnings (Accumulated losses) (k)		(83,969,760	)
Net Assets	$	3,529,583,960
Net Assets
Class A	$	2,977,186,525
Class B		455,631,719
Class E		96,765,716
Capital Shares Outstanding*
Class A		28,922,077
Class B		4,510,592
Class E		949,016
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	102.94
Class B		101.01
Class E		101.96

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $4,165,459,763.
(b)	Includes securities loaned at value of $56,966,622.
(c)	Investments at value is net of unfunded loan commitments of $2,241,504.
(d)	Identified cost of cash denominated in foreign currencies was $30,580,358.
(e)	Includes collateral of $1,890,000 for OTC swap contracts and $5,519,458 for centrally cleared swap contracts.
(f)	Net premium paid on OTC swap contracts was $1,989,471.
(g)	Included within TBA securities sold is $570,908,374 related to TBA forward sale commitments and included within TBA securities purchased is $307,927,299 related to TBA forward sale commitments.
(h)	Premiums received on written options were $2,147,736.
(i)	Includes collateral of $1,360,000 for OTC swap contracts and $5,370,000 for purchased option contracts.
(j)	Net premium received on OTC swap contracts was $913,995.
(k)	Includes foreign capital gains tax of $111.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends	$	454,638
Interest (a)		135,979,677
Securities lending income		430,853
Total investment income		136,865,168
Expenses
Management fees		12,360,919
Administration fees		132,098
Custodian and accounting fees		893,947
Distribution and service fees—Class B		1,219,534
Distribution and service fees—Class E		154,967
Interest expense		2,343,215
Audit and tax services		126,406
Legal		47,498
Trustees’ fees and expenses		33,734
Shareholder reporting		240,319
Insurance		24,590
Miscellaneous		60,559
Total expenses		17,637,786
Net Investment Income		119,227,382
Net Realized and Unrealized Loss
Net realized gain (loss) on:
Investments (b)		(84,441,523	)
Purchased options		(10,307,030	)
Futures contracts		(8,779,748	)
Written options		11,697,060
Swap contracts		(220,942	)
Foreign currency transactions		19,090
Forward foreign currency transactions		3,775,307
Net realized loss		(88,257,786	)
Net change in unrealized appreciation (depreciation) on:
Investments (c)		(65,030,041	)
Purchased options		5,290,977
Futures contracts		11,359,922
Written options		(3,505,464	)
Swap contracts		1,867,101
Foreign currency transactions		457,992
Forward foreign currency transactions		(1,557,238	)
Net change in unrealized depreciation		(51,116,751	)
Net realized and unrealized loss		(139,374,537	)
Net Decrease in Net Assets From Operations	$	(20,147,155	)

(a)	Net of foreign withholding taxes of $119,765.
(b)	Net of foreign capital gains tax of $133,628.
(c)	Includes change in foreign capital gains tax of $129,363.

See accompanying notes to financial statements.

BHFTII-48

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	119,227,382		$	113,865,262
Net realized loss		(88,257,786	)		(18,825,284	)
Net change in unrealized appreciation (depreciation)		(51,116,751	)		59,037,227
Increase (decrease) in net assets from operations		(20,147,155	)		154,077,205
From Distributions to Shareholders (a)
Class A		(107,235,041	)		(100,635,202	)
Class B		(15,497,327	)		(15,212,013	)
Class E		(3,386,449	)		(3,438,021	)
Total distributions		(126,118,817	)		(119,285,236	)
Increase (decrease) in net assets from capital share transactions		(205,016,090	)		25,210,294
Total increase (decrease) in net assets		(351,282,062	)		60,002,263
Net Assets
Beginning of period		3,880,866,022			3,820,863,759
End of period	$	3,529,583,960		$	3,880,866,022	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		777,927		$	81,978,175			719,265		$	76,744,253
Reinvestments		1,058,171			107,235,041			950,734			100,635,202
Redemptions		(3,363,241	)		(345,154,048	)		(1,289,986	)		(137,935,585	)
Net increase (decrease)		(1,527,143	)	$	(155,940,832	)		380,013		$	39,443,870
Class B
Sales		333,450		$	33,923,102			366,024		$	38,383,912
Reinvestments		155,627			15,497,327			146,185			15,212,013
Redemptions		(879,364	)		(88,986,835	)		(571,544	)		(59,986,157	)
Net decrease		(390,287	)	$	(39,566,406	)		(59,335	)	$	(6,390,232	)
Class E
Sales		42,286		$	4,357,181			61,074		$	6,459,645
Reinvestments		33,709			3,386,449			32,756			3,438,021
Redemptions		(168,813	)		(17,252,482	)		(167,697	)		(17,741,010	)
Net decrease		(92,818	)	$	(9,508,852	)		(73,867	)	$	(7,843,344	)
Increase (decrease) derived from capital shares transactions				$	(205,016,090	)				$	25,210,294

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $126,493,176 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-49

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	106.93		$	106.00		$	106.14		$	110.97		$	107.33
Income (Loss) from Investment Operations
Net investment income (a)		3.33			3.18			2.76	(b)		2.73			3.18
Net realized and unrealized gain (loss)		(3.77	)		1.13			0.61			(2.08	)		4.28
Total income (loss) from investment operations		(0.44	)		4.31			3.37			0.65			7.46
Less Distributions
Distributions from net investment income		(3.55	)		(3.38	)		(3.51	)		(4.24	)		(3.82	)
Distributions from net realized capital gains		0.00			0.00			0.00			(1.24	)		0.00
Total distributions		(3.55	)		(3.38	)		(3.51	)		(5.48	)		(3.82	)
Net Asset Value, End of Period	$	102.94		$	106.93		$	106.00		$	106.14		$	110.97
Total Return (%) (c)		(0.36	)		4.10			3.12			0.59			7.08
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.43			0.51			0.37			0.36			0.35
Gross ratio of expenses to average net assets excluding interest expense (%)		0.37			0.37			0.36			0.36			0.35
Net ratio of expenses to average net assets (%) (d)		0.43			0.51			0.37			0.36			0.35
Net ratio of expenses to average net assets excluding interest expense (%) (d)		0.37			0.37			0.36			0.36			0.35
Ratio of net investment income to average net assets (%)		3.22			2.98			2.56	(b)		2.50			2.91
Portfolio turnover rate (%)		439	(e)		615	(e)		571	(e)		824	(e)		679	(e)
Net assets, end of period (in millions)	$	2,977.2		$	3,256.0		$	3,187.2		$	3,178.0		$	3,686.9
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	104.98		$	104.12		$	104.31		$	109.16		$	105.64
Income (Loss) from Investment Operations
Net investment income (a)		3.02			2.86			2.45	(b)		2.42			2.87
Net realized and unrealized gain (loss)		(3.71	)		1.11			0.59			(2.05	)		4.20
Total income (loss) from investment operations		(0.69	)		3.97			3.04			0.37			7.07
Less Distributions
Distributions from net investment income		(3.28	)		(3.11	)		(3.23	)		(3.98	)		(3.55	)
Distributions from net realized capital gains		0.00			0.00			0.00			(1.24	)		0.00
Total distributions		(3.28	)		(3.11	)		(3.23	)		(5.22	)		(3.55	)
Net Asset Value, End of Period	$	101.01		$	104.98		$	104.12		$	104.31		$	109.16
Total Return (%) (c)		(0.62	)		3.85			2.86			0.34			6.81
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.68			0.76			0.62			0.61			0.60
Gross ratio of expenses to average net assets excluding interest expense (%)		0.62			0.62			0.61			0.61			0.60
Net ratio of expenses to average net assets (%) (d)		0.68			0.76			0.62			0.61			0.60
Net ratio of expenses to average net assets excluding interest expense (%) (d)		0.62			0.62			0.61			0.61			0.60
Ratio of net investment income to average net assets (%)		2.97			2.73			2.31	(b)		2.26			2.67
Portfolio turnover rate (%)		439	(e)		615	(e)		571	(e)		824	(e)		679	(e)
Net assets, end of period (in millions)	$	455.6		$	514.5		$	516.4		$	514.1		$	519.5

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-50

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Financial Highlights

	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	105.94		$	105.03		$	105.18		$	110.00		$	106.41
Income (Loss) from Investment Operations
Net investment income (a)		3.15			2.99			2.57	(b)		2.55			3.00
Net realized and unrealized gain (loss)		(3.75	)		1.12			0.60			(2.07	)		4.23
Total income (loss) from investment operations		(0.60	)		4.11			3.17			0.48			7.23
Less Distributions
Distributions from net investment income		(3.38	)		(3.20	)		(3.32	)		(4.06	)		(3.64	)
Distributions from net realized capital gains		0.00			0.00			0.00			(1.24	)		0.00
Total distributions		(3.38	)		(3.20	)		(3.32	)		(5.30	)		(3.64	)
Net Asset Value, End of Period	$	101.96		$	105.94		$	105.03		$	105.18		$	110.00
Total Return (%) (c)		(0.52	)		3.95			2.98			0.44			6.92
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.58			0.65			0.52			0.51			0.50
Gross ratio of expenses to average net assets excluding interest expense (%)		0.52			0.52			0.51			0.51			0.50
Net ratio of expenses to average net assets (%) (d)		0.58			0.65			0.52			0.51			0.50
Net ratio of expenses to average net assets excluding interest expense (%) (d)		0.52			0.52			0.51			0.51			0.50
Ratio of net investment income to average net assets (%)		3.07			2.82			2.40	(b)		2.35			2.78
Portfolio turnover rate (%)		439	(e)		615	(e)		571	(e)		824	(e)		679	(e)
Net assets, end of period (in millions)	$	96.8		$	110.4		$	117.2		$	126.2		$	143.8

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to $0.01 per share and 0.01% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(e)	Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 92%, 168%, 178%, 278% and 276% for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively.

See accompanying notes to financial statements.

BHFTII-51

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is BlackRock Bond Income Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued on the basis of evaluated or composite bid quotations obtained from pricing services selected by the Adviser pursuant to authorization of and subject to general oversight by the Board. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded

BHFTII-52

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Foreign currency forward contracts are valued through an independent pricing service by interpolating between forward and spot currency rates in the London foreign exchange markets as of a designated hour on a valuation day. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

Options, including options on swaps (“swaptions”), currencies, and futures contracts that are traded OTC are generally valued on the basis of interdealer bid and ask prices or prices provided by pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) aremarked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or a pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third-party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s Custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the Custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

BHFTII-53

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Mortgage Dollar Rolls -The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sellsto-be-announced (“TBA”) mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase or reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation, and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

Mortgage-Related and Other Asset-Backed Securities - The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

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The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

TBA Purchase and Forward Sale Commitments -The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

When-Issued and Delayed-Delivery Securities- The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s Custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

High-Yield Debt Securities - The Portfolio may invest in high-yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high-yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high-yield debt securities are generally less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights ofset-off against the borrower. The Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments, it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

The Portfolio will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling the participation, the Portfolio may be treated as a general creditor of the lender and may not benefit from anyset-off between the lender and the borrower.

Unfunded Loan Commitments - The Portfolio may enter into certain credit agreements, all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of December 31, 2018, the Portfolio had open unfunded loan commitments of $2,241,504. At December 31, 2018, the Portfolio had sufficient cash and/or securities to cover these commitments.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

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At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $2,767,249. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $10,800,000. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

Reverse Repurchase Agreements - The Portfolio may enter into reverse repurchase agreements with qualified institutions. In a reverse repurchase agreement, the Portfolio transfers securities in exchange for cash to a financial institution or counterparty, concurrently with an agreement by the Portfolio to re-acquire the same securities at an agreed-upon price and date. During the reverse repurchase agreement period, the Portfolio continues to receive principal and interest payments on these securities. The Portfolio will establish a segregated account with its Custodian in which it will maintain liquid assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities transferred by the Portfolio may decline below the agreed-upon reacquisition price of the securities. In the event of default or failure by a party to perform an obligation in connection with any reverse repurchase transaction, the MRA entitles thenon-defaulting party with a right toset-off claims and apply property held by it in respect of any reverse repurchase transaction against obligations owed to it. Cash received in exchange for securities transferred under reverse repurchase agreements plus accrued interest payments to be made by the Portfolio to counterparties are reflected as reverse repurchase agreements on the Statement of Assets and Liabilities.

For the year ended December 31, 2018, the Portfolio had an outstanding reverse repurchase agreement balance for 115 days. The average amount of borrowings was $511,262,442 and the annualized weighted average interest rate was 1.28% during the 115 day period.

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The following table summarizes open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis as of December 31, 2018:

Counterparty	Reverse Repurchase Agreements			Collateral Pledged		Net Amount*
Barclays Capital, Inc.	$	(27,608,125	)	$	27,403,074	$	(205,051	)
BNP Paribas S.A.		(28,067,900	)		27,823,583		(244,317	)
Merrill Lynch Pierce Fenner & Smith, Inc.		(44,522,058	)		44,400,185		(121,873	)
	$	(100,198,083	)	$	99,626,842	$	(571,241	)

* Net amount represents the net amount payable due to the counterparty in the event of default.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days			31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Corporate Bonds & Notes	$	(65,262,872	)	$	—		$	—	$	—	$	(65,262,872	)
Foreign Government		(21,506,880	)		—			—		—		(21,506,880	)
Reverse Repurchase Agreements
U. S. Treasury		—			(100,198,083	)		—		—		(100,198,083	)
Total	$	(86,769,752	)	$	(100,198,083	)	$	—	$	—	$	(186,967,835	)
Total Borrowings	$	(86,769,752	)	$	(100,198,083	)	$	—	$	—	$	(186,967,835	)
Gross amount of recognized liabilities for securities lending transactions and reverse repurchase agreements.											$	(186,967,835	)

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed-upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the valuation date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio may also experience losses even when such contracts are used for hedging purposes. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the

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contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

Options Contracts - An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain investment exposure to a target asset class or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option is worthless when it expires and the premium paid for the option is considered a realized loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which aremarked-to-market daily. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received by the Portfolio for a written option is recorded as an asset and an equivalent liability. The liability is subsequentlymarked-to-market to reflect the current value of the option written. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received by the Portfolio is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swaptions are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement at any time before the expiration of the option.

Options on Exchange-Traded Futures Contract (“Futures Option”) is an option contract in which the underlying instrument is a single futures contract.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are either privately negotiated in the OTC market (“OTC swaps”) or executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing

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exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Centrally Cleared Swaps:Clearinghouses currently offer clearing derivative transactions which include interest rate and credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction.

Swap agreements aremarked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received upon entering into the swap agreement compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit, and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (referred to as the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement provided that no credit event has occurred. As the seller of protection, the Portfolio will effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may be worthless when it expires and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of

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the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event involving an entity in the index, the credit event is settled based on that entity’s weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer, serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2018, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust its interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include: (1) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; (2) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and (3) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels; and (4) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive.

Currency Swaps: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

BHFTII-60

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Asset Derivatives			Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value		Statement of Assets & Liabilities Location	Fair Value
Interest Rate	Investments at market value (a)	$	5,935,478
	OTC swap contracts at market value (b)		781,349	OTC swap contracts at market value (b)	$	495,705
	Unrealized appreciation on centrally cleared swap contracts (c) (d)		2,211,534	Unrealized depreciation on centrally cleared swap contracts (c) (d)		2,557,253
	Unrealized appreciation on futures contracts (d) (e)		16,813,038	Unrealized depreciation on futures contracts (d) (e)		5,041,520
				Written options at value		1,732,313
Credit	OTC swap contracts at market value (b)		2,177,461	OTC swap contracts at market value (b)		762,200
	Unrealized appreciation on centrally cleared swap contracts (c) (d)		165,978
Foreign Exchange	Investments at market value (a)		1,075,951
				OTC swap contracts at market value (b)		28,781
	Unrealized appreciation on forward foreign currency exchange contracts		469,541	Unrealized depreciation on forward foreign currency exchange contracts		3,764,716
				Written options at value		1,032,554
Total		$	29,630,330		$	15,415,042

(a)	Represents purchased options which are part of investments at value as shown in the Statement of Assets and Liabilities.
(b)	Excludes OTC swap interest receivable of $150,717 and OTC swap interest payable of $160,475.
(c)	Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.
(d)	Financial instrument not subject to a master netting agreement.
(e)	Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement ("MNA") (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2018.

Counterparty	Derivative Assets subject to an MNA by Counterparty		Financial Instruments available for offset			Collateral Received†			Net Amount*
Bank of America N.A.	$	333,608	$	(71,826	)	$	(250,000	)	$	11,782
Barclays Bank plc		1,169,639		—			(1,022,842	)		146,797
BNP Paribas S.A.		179,488		(137,195	)		(42,293	)		—
Citibank N.A.		1,256,250		(1,256,250	)		—			—
Credit Suisse International		109,735		(109,735	)		—			—
Deutsche Bank AG		1,531,025		(753,476	)		(777,549	)		—
Goldman Sachs International		227,506		(210,121	)		—			17,385
JPMorgan Chase Bank N.A.		5,542,065		(2,398,387	)		(3,143,678	)		—
Morgan Stanley & Co. International plc		90,464		(90,464	)		—			—
	$	10,439,780	$	(5,027,454	)	$	(5,236,362	)	$	175,964

BHFTII-61

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2018.

Counterparty	Derivative Liabilities subject to an MNA by Counterparty		Financial Instruments available for offset			Collateral Pledged†			Net Amount**
Bank of America N.A.	$	71,826	$	(71,826	)	$	—		$	—
BNP Paribas S.A.		137,195		(137,195	)		—			—
Citibank N.A.		2,467,599		(1,256,250	)		(930,000	)		281,349
Credit Suisse International		183,066		(109,735	)		(73,331	)		—
Deutsche Bank AG		753,476		(753,476	)		—			—
Goldman Sachs International		210,121		(210,121	)		—			—
JPMorgan Chase Bank N.A.		2,398,387		(2,398,387	)		—			—
Morgan Stanley & Co. International plc		1,320,711		(90,464	)		(880,000	)		350,247
National Australia Bank Ltd.		223,188		—			—			223,188
Nomura International plc		1,888		—			—			1,888
Northern Trust Co.		10,412		—			—			10,412
Toronto Dominion Bank		1,743		—			—			1,743
UBS AG		36,657		—			—			36,657
	$	7,816,269	$	(5,027,454	)	$	(1,883,331	)	$	905,484

*	Net amount represents the net amount receivable from the counterparty in the event of default.
**	Net amount represents the net amount payable due to the counterparty in the event of default.
†	In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of OperationsLocation-Net Realized Gain (Loss)	Interest Rate			Credit			Foreign Exchange			Total
Purchased options	$	(2,222,892	)	$	—		$	(8,084,138	)	$	(10,307,030	)
Forward foreign currency transactions		—			—			3,775,307			3,775,307
Swap contracts		(1,338,421	)		1,117,479			—			(220,942	)
Futures contracts		(8,779,748	)		—			—			(8,779,748	)
Written options		6,956,779			46,543			4,693,738			11,697,060
	$	(5,384,282	)	$	1,164,022		$	384,907		$	(3,835,353	)
Statement of OperationsLocation-Net Change in Unrealized Appreciation (Depreciation)	Interest Rate			Credit			Foreign Exchange			Total
Purchased options	$	3,149,565		$	—		$	2,141,412		$	5,290,977
Forward foreign currency transactions		—			—			(1,557,238	)		(1,557,238	)
Futures contracts		11,359,922			—			—			11,359,922
Swap contracts		2,156,044			(260,651	)		(28,292	)		1,867,101
Written options		(1,946,834	)		—			(1,558,630	)		(3,505,464	)
	$	14,718,697		$	(260,651	)	$	(1,002,748	)	$	13,455,298

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Purchased options	$	1,880,603,006
Forward foreign currency transactions		468,682,532
Futures contracts long		1,541,160,820
Futures contracts short		(684,286,118	)
Swap contracts		652,002,661
Written options		(1,075,520,134	)

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

BHFTII-62

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange-traded derivatives (e.g., futures contracts and exchange-traded options), while collateral terms are contract specific for OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk:The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or

BHFTII-63

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar rolls and TBA transactions but excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$15,485,649,450	$	1,775,470,101	$	16,384,396,986	$	1,894,972,196

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2018 were as follows:

Purchases	Sales
$13,829,511,163	$	13,827,993,193

The Portfolio engaged in security transactions with other accounts managed by BlackRock Advisors, LLC, the subadviser to the Portfolio, that amounted to $1,957,955 in purchases and $3,442,594 in sales of investments, which are included above, and resulted in realized losses of $139,589.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$12,360,919		0.400	%	Of the first $1 billion
		0.350	%	Of the next $1 billion
		0.300	%	Of the next $1 billion
		0.250	%	On amounts in excess of $3 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. BlackRock Advisors, LLC (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers- Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.030%		Of the first $1 billion
0.025%		Of the next $1 billion

Any reductions in total advisory fees paid by the Portfolio due to these waivers may be reduced or eliminated by changes in the advisory fee structure at higher asset levels. Brighthouse Investment Advisers will receive advisory fees equal to 0.325% of the Portfolio’s average daily net assets for amounts over $2 billion but less than $3 billion (0.025% over the contractual advisory fee rate) and 0.325% for amounts over $3 billion but less than $3.4 billion (0.075% over the contractual advisory fee rate). As a result, the dollar amount of the waiver will be reduced as assets grow beyond $2 billion up to $3.4 billion, but the advisory fee net of waivers will never exceed the contractual dollar amount that would otherwise be payable under the advisory fee.

BHFTII-64

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. No fees were waived during the year ended December 31, 2018.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	3,909,151,200
Gross unrealized appreciation		107,075,946
Gross unrealized depreciation		(165,389,692	)
Net unrealized appreciation (depreciation)	$	(58,313,746	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$126,118,817	$	119,285,236	$	—	$	—	$	126,118,817	$	119,285,236

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses			Total
$126,610,528	$	—	$	(57,696,157	)	$	(152,772,496	)	$	(83,858,125	)

BHFTII-65

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had short-term accumulated capital losses of $92,349,595 and long-term accumulated capital losses of $60,422,901.

9.Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards UpdateNo. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20)—Premium Amortization on Purchased Callable Debt Securities (“ASU2017-08”) which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this standards update to the Portfolio.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-66

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Bond Income Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the BlackRock Bond Income Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the BlackRock Bond Income Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-67

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-68

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-69

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-70

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-71

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-72

Brighthouse Funds Trust II

BlackRock Bond Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

BlackRock Bond Income Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and BlackRock Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five- year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, for the three- and five-year periods ended September 30, 2018, and underperformed its benchmark index for theone-year period ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-l fees) were below the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median, and were the lowest in theSub-advised Expense Universe. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-73

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Managed by BlackRock Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the BlackRock Capital Appreciation Portfolio returned 2.43%, 2.18%, and 2.26%, respectively. The Portfolio’s benchmark, the Russell 1000 Growth Index¹, returned-1.51%.

MARKET ENVIRONMENT / CONDITIONS

Global markets had a difficult year with global stocks, crude oil, and U.S. Treasuries all having their worst performance in multiple years. The year began with optimism but concerns of overheating set in and markets responded with the S&P 500 Index experiencing a steep correction and the VIX (a common measure of volatility) rising above 50. Market attention then shifted from domestic to international issues including the U.S. trade negotiations, the accelerating U.S. dollar putting pressure on emerging markets, European growth taking an unexpected downward turn as Eurozone PMIs (purchasing managers index) began to slide, and minimal progress being made on Brexit (the U.K.’s plan to leave the European Union). The year ended turbulently with the S&P 500 Index experiencing another steep correction. The initial selling pressure was driven by hedge funds, but real money later joined. Oil was also impacted, pushing Brent oil prices to 2017 lows. Finally, the Federal Reserve’s fourth rate hike of the year was poorly received. The S&P 500 Index ended the year with P/E multiplesde-rating by almost 23%.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio outperformed the Russell 1000 Growth Index during the12-month period.

On a sector basis, the largest contributor to relative performance was Consumer Discretionary where internet & direct marketing retail holdings had the most positive impact. Selection in hotels, restaurants & leisure and a lack of exposure to media also added value within the sector. Health Care and Industrials were additional sources of strength. Equipment & supplies and life sciences tools & services holdings drove gains in Health Care, while positioning to machinery and zero exposure to air freight & logistics benefited in Industrials. Conversely, Communication Services detracted from performance with entertainment holdings hindering results. Consumer Staples and Materials also weighed on performance. Selection in beverages was a drag in Consumer Staples, while positioning to construction materials was a weakness within Materials.

In stock specifics, the top individual contributors were Amazon.com, Inc. and Netflix, Inc. Amazon outperformed as the company delivered a series of strong earnings reports, with revenue acceleration in North America, International, Prime, Amazon Web Services (“AWS”), and advertising. In addition, especially notable has been Amazon’s operating margin expansion, driven by advertising, subscription services, AWS, and shipping efficiencies. Our view remained that Amazon has many years of profitable growth ahead and, accordingly, we maintained the Portfolio’s overweight position. Netflix continued to outperform after a series of strong earnings reports. The company exceeded 23 million global net subscriber additions for 2017 and is on pace to exceed 28 million in 2018, ahead of our forecasts. Overall, our thesis is playing out as the flywheel of content and subscriber additions is benefiting Netflix as it gains scale. At year end, we continued to believe the stock was far from pricing in the company’s long-term growth and profitability potential.

The top detractors over the annual period were Tencent Holdings, Ltd. and Constellation Brands, Inc. Tencent underperformed amid U.S./China trade tensions, weakness in the Chinese stock market, regulatory uncertainty, and questions around timing of game launches and monetization. In addition, data showed a modest decline in Tencent’s share of mobile user time spent. Our view remained bullish as the company still dominates mobile time spent in China, enabling it to monetize along multiple channels, including gaming, advertising, payments, ande-commerce among others. Constellation has underperformed as investors fear that Mexican import beer decelerates along with beer profit margin growth and reinvestment risk in Canopy Growth. Constellation announced a $4 billion investment in Canopy Growth during the second quarter. At year end, we expected Constellation’s core fundamentals to stay on track, including high single digit volume growth for beer and continued beer margin expansion and remained positive on the Canopy investment.

The largest sector overweight in the Portfolio atyear-end was Health Care, followed by Communication Services. Industrials and Consumer Staples were the largest underweights.

Lawrence Kemp

Portfolio Manager

BlackRock Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
BlackRock Capital Appreciation Portfolio
Class A		2.43		9.70		13.79
Class B		2.18		9.43		13.51
Class E		2.26		9.54		13.63
Russell 1000 Growth Index		-1.51		10.41		15.29

¹ The Russell 1000 Growth Index is an unmanaged measure of performance of the largest capitalized U.S. companies, within the Russell 1000 companies, that have higher price-to-book ratios and forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Amazon.com, Inc.		8.9
Microsoft Corp.		6.4
Visa, Inc. - Class A		5.3
Alphabet, Inc. - Class A		4.1
UnitedHealth Group, Inc.		3.9
MasterCard, Inc. - Class A		3.4
Salesforce.com, Inc.		3.0
Netflix, Inc.		2.8
Tencent Holdings, Ltd.		2.7
Booking Holdings, Inc.		2.6

Top Sectors

	% of Net Assets
Information Technology		32.2
Health Care		19.0
Consumer Discretionary		15.9
Communication Services		14.8
Industrials		5.8
Financials		5.2
Consumer Staples		1.8
Real Estate		1.7
Materials		1.5

BHFTII-2

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

BlackRock Capital Appreciation Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.63	%	$	1,000.00	$	895.10	$	3.01
	Hypothetical*		0.63	%	$	1,000.00	$	1,022.03	$	3.21
Class B (a)	Actual		0.88	%	$	1,000.00	$	894.00	$	4.20
	Hypothetical*		0.88	%	$	1,000.00	$	1,020.77	$	4.48
Class E (a)	Actual		0.78	%	$	1,000.00	$	894.50	$	3.72
	Hypothetical*		0.78	%	$	1,000.00	$	1,021.27	$	3.97

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—97.2% of Net Assets

Security Description	Shares		Value
Automobiles—0.8%
Tesla, Inc. (a) (b)		35,143	$	11,695,590
Banks—0.6%
First Republic Bank (a)		100,741		8,754,393
Beverages—1.8%
Constellation Brands, Inc. - Class A		169,772		27,302,733
Biotechnology—1.7%
BioMarin Pharmaceutical, Inc. (b)		76,544		6,517,722
Vertex Pharmaceuticals, Inc. (b)		120,454		19,960,432
				26,478,154
Capital Markets—3.4%
CME Group, Inc. (a)		121,940		22,939,353
S&P Global, Inc.		172,506		29,315,670
				52,255,023
Chemicals—1.5%
Sherwin-Williams Co. (The) (a)		59,694		23,487,201
Diversified Financial Services—1.2%
Berkshire Hathaway, Inc. - Class B (a) (b)		92,141		18,813,349
Entertainment—5.4%
Activision Blizzard, Inc. (a)		259,699		12,094,183
Electronic Arts, Inc. (b)		352,191		27,791,392
Netflix, Inc. (a) (b)		161,608		43,255,997
				83,141,572
Equity Real Estate Investment Trusts—1.7%
SBA Communications Corp. (b)		164,820		26,682,710
Health Care Equipment & Supplies—7.6%
Align Technology, Inc. (a) (b)		112,386		23,537,000
Becton Dickinson & Co. (a)		145,994		32,895,368
Boston Scientific Corp. (b)		1,006,800		35,580,312
Intuitive Surgical, Inc. (a) (b)		52,788		25,281,229
				117,293,909
Health Care Providers & Services—5.4%
Centene Corp. (b)		187,596		21,629,819
UnitedHealth Group, Inc.		242,906		60,512,743
				82,142,562
Hotels, Restaurants & Leisure—1.0%
Domino’s Pizza, Inc. (a)		62,798		15,573,276
Industrial Conglomerates—1.0%
Roper Technologies, Inc.		58,041		15,469,087
Interactive Media & Services—9.4%
Alphabet, Inc. - Class A (b)		59,677		62,360,078
Facebook, Inc. - Class A (b)		203,840		26,721,385
IAC/InterActiveCorp (b)		73,140		13,387,546
Interactive Media & Services—(Continued)
Tencent Holdings, Ltd.		1,059,900		42,013,404
				144,482,413
Internet & Direct Marketing Retail—13.1%
Amazon.com, Inc. (b)		91,081		136,800,929
Booking Holdings, Inc. (b)		22,990		39,598,436
MercadoLibre, Inc. (a)		83,913		24,573,922
				200,973,287
IT Services—10.4%
MasterCard, Inc. - Class A		273,414		51,579,551
PayPal Holdings, Inc. (b)		331,867		27,906,696
Visa, Inc. - Class A		613,645		80,964,322
				160,450,569
Life Sciences Tools & Services—1.7%
Illumina, Inc. (b)		86,666		25,993,733
Machinery—0.9%
Xylem, Inc.		215,550		14,381,496
Pharmaceuticals—2.6%
Novartis AG (ADR)		296,333		25,428,335
Zoetis, Inc.		170,410		14,576,871
				40,005,206
Professional Services—2.2%
CoStar Group, Inc. (a) (b)		101,492		34,237,311
Road & Rail—1.6%
Union Pacific Corp.		180,485		24,948,442
Semiconductors & Semiconductor Equipment—3.0%
ASML Holding NV (a)		180,657		28,113,842
NVIDIA Corp.		134,912		18,010,752
				46,124,594
Software—17.2%
Adobe, Inc. (b)		168,850		38,200,624
Autodesk, Inc. (b)		181,277		23,314,035
Intuit, Inc.		179,626		35,359,378
Microsoft Corp.		974,382		98,967,980
Salesforce.com, Inc. (a) (b)		338,106		46,310,379
ServiceNow, Inc. (a) (b)		129,870		23,123,353
				265,275,749
Technology Hardware, Storage & Peripherals—0.9%
Apple, Inc.		86,576		13,656,498
Textiles, Apparel & Luxury Goods—1.1%
NIKE, Inc. - Class B		235,619		17,468,793
Total Common Stocks (Cost $1,186,269,287)				1,497,087,650

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Schedule of Investments as of December 31, 2018

Preferred Stock—0.7%

Security Description	Shares/ Principal Amount*		Value
Software—0.7%
Palantir Technologies, Inc. - Series I, (b) (c) (d) (e) (Cost $15,555,193)		2,537,552	$	10,606,968
Short-Term Investment—2.5%
Repurchase Agreement—2.5%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $38,912,981; collateralized by U.S. Treasury Note at 2.250%, maturing 01/31/24, with a market value of $39,691,669.		38,910,387		38,910,387
Total Short-Term Investments (Cost $38,910,387)				38,910,387
Securities Lending Reinvestments (f)—12.4%
Certificates of Deposit—5.8%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (g)		3,000,000		2,999,742
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (g)		2,000,000		1,999,950
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (g)		5,000,000		4,999,996
3.072%, 3M LIBOR + 0.280%, 03/20/19 (g)		2,000,000		2,000,798
Barclays Bank plc 2.500%, 02/01/19		1,000,000		999,871
2.547%, 1M LIBOR + 0.200%, 02/04/19 (g)		2,500,000		2,499,762
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (g)		1,000,000		999,872
2.740%, 1M LIBOR + 0.270%, 07/19/19 (g)		2,000,000		1,999,188
China Construction Bank Corp. 2.550%, 01/07/19		2,000,000		2,000,000
Citibank N.A. 2.490%, 02/04/19		2,000,000		1,999,722
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (g)		1,500,000		1,500,005
2.642%, 1M LIBOR + 0.210%, 09/13/19 (g)		2,000,000		2,000,000
Credit Agricole S.A. 2.500%, 02/12/19		5,000,000		4,999,150
2.799%, 1M LIBOR + 0.320%, 05/21/19 (g)		3,000,000		3,000,189
Credit Industriel et Commercial Zero Coupon, 01/25/19		4,393,165		4,442,435
Credit Suisse AG 2.620%, 04/01/19		6,000,000		5,996,892
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		3,000,000		2,999,778
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (g)		3,000,000		3,000,018
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (g)		1,000,000		999,370
Skandinaviska Enskilda Banken
2.645%, 1M LIBOR + 0.190%, 04/17/19 (g)		5,000,000		4,999,590
Certificates of Deposit—(Continued)
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (g)		2,000,000	$	1,999,112
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (g)		6,000,000		5,999,826
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (g)		5,000,000		4,999,900
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (g)		2,000,000		1,999,266
2.700%, 02/25/19		2,000,000		2,000,184
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (g)		4,000,000		3,999,820
2.822%, 1M LIBOR + 0.300%, 10/31/19 (g)		2,000,000		1,999,532
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (g)		1,000,000		1,000,000
Wells Fargo Bank N.A.
2.560%, 3M LIBOR + 0.140%, 07/11/19 (g)		4,000,000		4,003,470
2.730%, 3M LIBOR + 0.210%, 10/25/19 (g)		2,000,000		2,000,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (g)		3,000,000		2,999,981
				89,437,419
Commercial Paper—1.5%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (g)		2,000,000		1,999,446
Banco Santander S.A. 2.500%, 01/16/19		3,974,444		3,995,184
2.740%, 02/07/19		2,978,993		2,991,264
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (g)		4,000,000		4,000,372
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (g)		2,000,000		1,999,968
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (g)		5,000,000		5,001,225
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (g)		3,000,000		2,999,880
				22,987,339
Repurchase Agreements—4.6%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $7,557,500; collateralized by various Common Stock with an aggregate market value of $8,251,375.		7,500,000		7,500,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $2,005,425; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $2,176,637.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $100,751; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $102,000.		100,000		100,000

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (f)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $600,083; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $612,000.		600,000	$	600,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $900,125; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $918,000.		900,000		900,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $400,061; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $408,000.		400,000		400,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $7,879,259; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $8,035,415.		7,877,858		7,877,858
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,209,016; collateralized by various Common Stock with an aggregate market value of $1,320,000.		1,200,000		1,200,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $7,052,593; collateralized by various Common Stock with an aggregate market value of $7,700,000.		7,000,000		7,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,400,199; collateralized by various Common Stock with an aggregate market value of $1,558,497.		1,400,000		1,400,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $5,000,711; collateralized by various Common Stock with an aggregate market value of $5,566,061.		5,000,000		5,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $4,800,683; collateralized by various Common Stock with an aggregate market value of $5,343,419.		4,800,000		4,800,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $5,000,703; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $5,477,379.		5,000,000		5,000,000
Repurchase Agreements—(Continued)
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $1,200,169; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,314,571.		1,200,000		1,200,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $10,001,406; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $10,954,759.		10,000,000		10,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $15,007,467; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $16,432,138.		15,000,000		15,000,000
				69,977,858
Time Deposit—0.5%
Royal Bank of Canada 2.420%, 01/02/19		7,000,000		7,000,000
Total Securities Lending Reinvestments (Cost $189,408,606)				189,402,616
Total Investments—112.8% (Cost $1,430,143,473)				1,736,007,621
Other assets and liabilities (net)—(12.8)%				(196,333,563	)
Net Assets—100.0%			$	1,539,674,058

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $187,845,655 and the collateral received consisted of cash in the amount of $189,324,461. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(b)	Non-income producing security.
(c)	Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2018, the market value of restricted securities was $10,606,968, which is 0.7% of net assets. See details shown in the Restricted Securities table that follows.
(d)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent 0.7% of net assets.
(e)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(f)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Schedule of Investments as of December 31, 2018

(g)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Restricted Securities	Acquisition Date		Shares		Cost		Value
Palantir Technologies, Inc.—Series I		02/07/14		2,537,552	$	15,555,193	$	10,606,968

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Automobiles	$	11,695,590	$	—		$	—	$	11,695,590
Banks		8,754,393		—			—		8,754,393
Beverages		27,302,733		—			—		27,302,733
Biotechnology		26,478,154		—			—		26,478,154
Capital Markets		52,255,023		—			—		52,255,023
Chemicals		23,487,201		—			—		23,487,201
Diversified Financial Services		18,813,349		—			—		18,813,349
Entertainment		83,141,572		—			—		83,141,572
Equity Real Estate Investment Trusts		26,682,710		—			—		26,682,710
Health Care Equipment & Supplies		117,293,909		—			—		117,293,909
Health Care Providers & Services		82,142,562		—			—		82,142,562
Hotels, Restaurants & Leisure		15,573,276		—			—		15,573,276
Industrial Conglomerates		15,469,087		—			—		15,469,087
Interactive Media & Services		102,469,009		42,013,404			—		144,482,413
Internet & Direct Marketing Retail		200,973,287		—			—		200,973,287
IT Services		160,450,569		—			—		160,450,569
Life Sciences Tools & Services		25,993,733		—			—		25,993,733
Machinery		14,381,496		—			—		14,381,496
Pharmaceuticals		40,005,206		—			—		40,005,206
Professional Services		34,237,311		—			—		34,237,311
Road & Rail		24,948,442		—			—		24,948,442
Semiconductors & Semiconductor Equipment		46,124,594		—			—		46,124,594
Software		265,275,749		—			—		265,275,749
Technology Hardware, Storage & Peripherals		13,656,498		—			—		13,656,498
Textiles, Apparel & Luxury Goods		17,468,793		—			—		17,468,793
Total Common Stocks		1,455,074,246		42,013,404			—		1,497,087,650
Total Preferred Stock*		—		—			10,606,968		10,606,968
Total Short-Term Investment*		—		38,910,387			—		38,910,387
Total Securities Lending Reinvestments*		—		189,402,616			—		189,402,616
Total Investments	$	1,455,074,246	$	270,326,407		$	10,606,968	$	1,736,007,621
Collateral for Securities Loaned (Liability)	$	—	$	(189,324,461	)	$	—	$	(189,324,461	)

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2018 is not presented.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,736,007,621
Cash denominated in foreign currencies (c)		25
Receivable for:
Fund shares sold		189,450
Dividends and interest		160,510
Prepaid expenses		4,851
Total Assets		1,736,362,457
Liabilities
Collateral for securities loaned		189,324,461
Payables for:
Investments purchased		5,752,906
Fund shares redeemed		438,816
Accrued Expenses:
Management fees		812,060
Distribution and service fees		42,752
Deferred trustees’ fees		113,813
Other expenses		203,591
Total Liabilities		196,688,399
Net Assets	$	1,539,674,058
Net Assets Consist of:
Paid in surplus	$	950,120,957
Distributable earnings (Accumulated losses)		589,553,101
Net Assets	$	1,539,674,058
Net Assets
Class A	$	1,327,666,011
Class B		173,673,575
Class E		38,334,472
Capital Shares Outstanding*
Class A		34,188,580
Class B		4,657,530
Class E		1,007,150
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	38.83
Class B		37.29
Class E		38.06

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $1,430,143,473.
(b)	Includes securities loaned at value of $187,845,655.
(c)	Identified cost of cash denominated in foreign currencies was $25.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	14,321,326
Interest		118,232
Securities lending income		727,431
Total investment income		15,166,989
Expenses
Management fees		12,637,976
Administration fees		65,819
Custodian and accounting fees		124,556
Distribution and service fees—Class B		478,051
Distribution and service fees—Class E		65,949
Audit and tax services		44,663
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		109,900
Insurance		11,842
Miscellaneous		24,781
Total expenses		13,642,588
Less management fee waiver		(1,689,385	)
Less broker commission recapture		(52	)
Net expenses		11,953,151
Net Investment Income		3,213,838
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		280,554,815
Foreign currency transactions		(1,662	)
Net realized gain		280,553,153
Net change in unrealized depreciation on:
Investments		(203,139,927	)
Foreign currency transactions		(1	)
Net change in unrealized depreciation		(203,139,928	)
Net realized and unrealized gain		77,413,225
Net Increase in Net Assets From Operations	$	80,627,063

(a) Net of foreign withholding taxes of $37,212.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	3,213,838		$	3,140,550
Net realized gain		280,553,153			237,065,755
Net change in unrealized appreciation (depreciation)		(203,139,928	)		293,564,173
Increase in net assets from operations		80,627,063			533,770,478
From Distributions to Shareholders (a)
Class A		(207,685,022	)		(39,459,638	)
Class B		(25,627,882	)		(4,251,821	)
Class E		(5,905,674	)		(902,466	)
Total distributions		(239,218,578	)		(44,613,925	)
Decrease in net assets from capital share transactions		(187,845,257	)		(304,649,608	)
Total increase (decrease) in net assets		(346,436,772	)		184,506,945
Net Assets
Beginning of period		1,886,110,830			1,701,603,885
End of period	$	1,539,674,058		$	1,886,110,830	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		541,953		$	24,324,099			407,722		$	15,832,740
Reinvestments		4,701,947			207,685,022			1,041,701			39,459,638
Redemptions		(9,310,034	)		(432,378,880	)		(8,505,197	)		(332,501,185	)
Net decrease		(4,066,134	)	$	(200,369,759	)		(7,055,774	)	$	(277,208,807	)
Class B
Sales		676,125		$	28,743,042			181,939		$	6,746,572
Reinvestments		603,435			25,627,882			115,980			4,251,821
Redemptions		(999,607	)		(43,641,060	)		(942,060	)		(35,531,615	)
Net increase (decrease)		279,953		$	10,729,864			(644,141	)	$	(24,533,222	)
Class E
Sales		230,760		$	10,279,382			170,692		$	6,603,842
Reinvestments		136,295			5,905,674			24,221			902,466
Redemptions		(328,183	)		(14,390,418	)		(271,074	)		(10,413,887	)
Net increase (decrease)		38,872		$	1,794,638			(76,161	)	$	(2,907,579	)
Decrease derived from capital shares transactions				$	(187,845,257	)				$	(304,649,608	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(1,710,196	)	$	(37,749,442	)
Class B		—			(4,251,821	)
Class E		—			(902,466	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $2,941,810 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	43.42		$	33.23		$	36.50		$	41.19		$	37.85
Income (Loss) from Investment Operations
Net investment income (a)		0.09			0.08			0.04	(b)		0.01			0.01
Net realized and unrealized gain (loss)		1.74			11.06			(0.15	)		2.69			3.35
Total income (loss) from investment operations		1.83			11.14			(0.11	)		2.70			3.36
Less Distributions
Distributions from net investment income		(0.06	)		(0.04	)		0.00			0.00			(0.02	)
Distributions from net realized capital gains		(6.36	)		(0.91	)		(3.16	)		(7.39	)		0.00
Total distributions		(6.42	)		(0.95	)		(3.16	)		(7.39	)		(0.02	)
Net Asset Value, End of Period	$	38.83		$	43.42		$	33.23		$	36.50		$	41.19
Total Return (%) (c)		2.43			33.93			0.09			6.28			8.90
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.72			0.72			0.72			0.71			0.71
Net ratio of expenses to average net assets (%) (d)		0.63			0.63			0.66			0.66			0.71
Ratio of net investment income to average net assets (%)		0.21			0.20			0.13	(b)		0.03			0.02
Portfolio turnover rate (%)		45			48			87			70			99
Net assets, end of period (in millions)	$	1,327.7		$	1,661.1		$	1,505.8		$	1,609.7		$	1,781.3
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	41.96		$	32.19		$	35.54		$	40.38		$	37.17
Income (Loss) from Investment Operations
Net investment loss (a)		(0.02	)		(0.02	)		(0.04	)(b)		(0.08	)		(0.09	)
Net realized and unrealized gain (loss)		1.71			10.70			(0.15	)		2.63			3.30
Total income (loss) from investment operations		1.69			10.68			(0.19	)		2.55			3.21
Less Distributions
Distributions from net realized capital gains		(6.36	)		(0.91	)		(3.16	)		(7.39	)		0.00
Total distributions		(6.36	)		(0.91	)		(3.16	)		(7.39	)		0.00
Net Asset Value, End of Period	$	37.29		$	41.96		$	32.19		$	35.54		$	40.38
Total Return (%) (c)		2.18			33.57			(0.15	)		6.01			8.64
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.97			0.97			0.97			0.96			0.96
Net ratio of expenses to average net assets (%) (d)		0.88			0.88			0.91			0.91			0.96
Ratio of net investment loss to average net assets (%)		(0.04	)		(0.05	)		(0.12	)(b)		(0.22	)		(0.23	)
Portfolio turnover rate (%)		45			48			87			70			99
Net assets, end of period (in millions)	$	173.7		$	183.7		$	161.6		$	177.9		$	184.6

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	42.68		$	32.69		$	36.01		$	40.79		$	37.51
Income (Loss) from Investment Operations
Net investment income (loss) (a)		0.03			0.02			(0.01	)(b)		(0.05	)		(0.05	)
Net realized and unrealized gain (loss)		1.71			10.88			(0.15	)		2.66			3.33
Total income (loss) from investment operations		1.74			10.90			(0.16	)		2.61			3.28
Less Distributions
Distributions from net realized capital gains		(6.36	)		(0.91	)		(3.16	)		(7.39	)		0.00
Total distributions		(6.36	)		(0.91	)		(3.16	)		(7.39	)		0.00
Net Asset Value, End of Period	$	38.06		$	42.68		$	32.69		$	36.01		$	40.79
Total Return (%) (c)		2.26			33.73			(0.06	)		6.11			8.74
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.87			0.87			0.87			0.86			0.86
Net ratio of expenses to average net assets (%) (d)		0.78			0.78			0.81			0.81			0.86
Ratio of net investment income (loss) to average net assets (%)		0.06			0.05			(0.02	)(b)		(0.12	)		(0.13	)
Portfolio turnover rate (%)		45			48			87			70			99
Net assets, end of period (in millions)	$	38.3		$	41.3		$	34.1		$	40.8		$	41.5

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.01% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is BlackRock Capital Appreciation Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-14

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives the non-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $38,910,387. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $69,977,858. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

BHFTII-15

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	815,177,831	$	0	$	1,253,469,834

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement- Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$12,637,976		0.730	%	Of the first $1 billion
		0.650	%	On amounts in excess of $1 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. BlackRock Advisors, LLC (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

BHFTII-16

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waivers- Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.115%	Of the first $1 billion
0.050%	On the next $500 million
0.090%	On the next $1 billion
0.110%	On amounts in excess of $2.5 billion

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement- Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation- Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,430,496,991
Gross unrealized appreciation		351,051,847
Gross unrealized depreciation		(45,541,217	)
Net unrealized appreciation (depreciation)	$	305,510,630

BHFTII-17

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$60,299,781	$	1,710,196	$	178,918,797	$	42,903,729	$	239,218,578	$	44,613,925

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$4,424,289	$	279,731,996	$	305,510,630	$	—	$	589,666,915

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Capital Appreciation Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the BlackRock Capital Appreciation Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the BlackRock Capital Appreciation Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-21

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-22

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-23

Brighthouse Funds Trust II

BlackRock Capital Appreciation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

BlackRock Capital Appreciation Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and BlackRock Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Russell 1000 Growth Index, for theone-year period ended September 30, 2018, and underperformed its benchmark for the three-year and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, the Expense Universe median and theSub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-24

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Managed by BlackRock Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the BlackRock Ultra-Short Term Bond Portfolio returned 1.81%, 1.55%, and 1.66%, respectively. The Portfolio’s benchmark, the Bank of America/Merrill Lynch3-monthT-Bill Index¹, returned 1.87%.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

Portfolio positioning over the course of 2018 was reflective of our evolving expectations regarding the path that the Federal Open Market Committee (the “FOMC”) will follow towards removal of monetary accommodation, short term funding issuance and net U.S. Treasury bill supply. Throughout the year, the FOMC continued to communicate the intent to gradually raise its target range. This factored into our strategy of maintaining a relatively short weighted average maturity (“WAM”) for the Portfolio. The U.S. Treasury increased net bill supply by $330 billion during February and March, and the short credit market felt pressures stemming from repatriation of offshore U.S. dollar assets. As we moved through the first quarter, these factors pressured yields, credit premiums and spreads higher. Beginning in early February, we saw offered levels on fixed rate securities move higher and spreads available on floating rate paper move wider. This widening persisted through the March FOMC meeting and into the end of the quarter, negatively impacting asset valuations. As we moved through the second quarter, higher than anticipated tax receipts during this year’s tax season lead to a $130 billion reduction in U.S. Treasury bill supply.Non-traditional buyers, drawn to the front end by high relative yields, provided significant demand for short-term credit assets. This increased demand for investment in short-term credit and the decrease in Treasury bill supply exerted downward pressure on credit premiums and spreads, leading these spreads and premiums to decline from their highs reached in early May. This tightening continued through June and factored into asset price increases. Throughout much of the third quarter, demand for short term credit investments fromnon-traditional buyers and inflows into prime money funds outpaced issuance supply causing3-month London Interbank Offered Rate (“LIBOR”) to remain range bound over the quarter despite the approaching September FOMC rate hike. Many issuers found success borrowing at levels lower than LIBOR for much of the 3^rd quarter. This tightening was generally positive for asset valuations over the quarter but proved a source of reinvestment risk for the Portfolio. It was not until the fourth quarter that demand for short term credit investments fromnon-traditional buyers ebbed, easing the imbalances that had left3-month LIBOR range bound between 2.30% and 2.39% since March. This, coupled withyear-end funding initiatives by the banks, pressured spreads and offered yields higher. Beginning in early October, we saw3-month LIBOR move higher, ending December at 2.81%.

During the fourth quarter, the Portfolio added floating rate certificates of deposit and commercial paper with final maturities of4-months to13-months at spreads of 16 basis points to 42 basis points over1-month LIBOR and 8 basis points to 32 basis points over3-month LIBOR. Fixed rate investments were added as yields of to 2.41% to 2.92% with final maturities of3-months to7-months, 0.23% to 0.54% above respective overnight levels at the time of their purchase. The Portfolio opportunistically added exposure to U.S. Treasury bills maturingmid-January 2019. The longer-term fixed rate certificates of deposit and commercial paper were subject to asset price volatility, particularly during periods of heavy U.S. Treasury bill issuance-induced spread widening. Floating rate positions experienced higher coupon resets during the period.

On December 31, 2018, the Portfolio’s WAM was 27 days and weighted average life was 73 days. Approximately 36% of the Portfolio was comprised of floating rate securities indexed off of1-month LIBOR (20%) and3-month LIBOR (16%). These contributed 0.96% to gross yield while fixed rate investments contributed the balance. U.S. Treasury bills represented 7% of assets.

Rich Mejzak

Eric Hiatt

Edward Ingold

Portfolio Managers

BlackRock Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

A $10,000 INVESTMENT COMPARED TO THE BANK OF AMERICA/MERRILL LYNCH 3-MONTH T-BILL INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
BlackRock Ultra-Short Term Bond Portfolio
Class A		1.81		0.61		0.35
Class B		1.55		0.46		0.25
Class E		1.66		0.52		0.29
Bank of America/Merrill Lynch3-MonthT-Bill Index		1.87		0.63		0.38

¹ The Bank of America/Merrill Lynch 3-Month T-Bill Index is composed of a single 90-day Treasury Bill issue, or potentially a seasoned 6-month or 1-year Treasury Bill issue, that is replaced on a monthly basis.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Issuers

	% of Net Assets
JPMorgan Chase Bank N.A.		12.2
UBS AG		3.8
Atlantic Asset Securitization LLC		3.7
BNP Paribas S.A. (NY)		3.2
Export Development Corp.		3.1
Antalis S.A.		3.0
Sumitomo Mitsui Trust Bank, Ltd. (NY)		2.9
United Overseas Bank, Ltd.		2.9
Chariot Funding LLC		2.9
Sumitomo Mitsui Banking Corp. (NY)		2.7

BHFTII-2

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

BlackRock Ultra-Short Term Bond Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.36	%	$	1,000.00	$	1,010.10	$	1.82
	Hypothetical*		0.36	%	$	1,000.00	$	1,023.39	$	1.84
Class B (a)	Actual		0.61	%	$	1,000.00	$	1,008.70	$	3.09
	Hypothetical*		0.61	%	$	1,000.00	$	1,022.13	$	3.11
Class E (a)	Actual		0.51	%	$	1,000.00	$	1,009.30	$	2.58
	Hypothetical*		0.51	%	$	1,000.00	$	1,022.64	$	2.60

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 4 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Schedule of Investments as of December 31, 2018

Short-Term Investments—99.9% of Net Assets

Security Description	Principal Amount*		Value
Certificate of Deposit—24.8%
Bank of Montreal (Chicago) 2.430%, 01/23/19		8,000,000	$	7,999,383
2.571%, 1M LIBOR + 0.150%, 03/12/19 (a)		7,000,000		7,000,455
2.890%, 1M LIBOR + 0.420%, 01/17/20 (a)		3,500,000		3,499,492
Bank of Nova Scotia (Houston) 2.913%, 3M LIBOR + 0.200%, 09/20/19 (a)		8,000,000		7,991,205
BNP Paribas S.A. (NY) 2.488%, 3M LIBOR + 0.080%, 04/04/19 (a)		7,000,000		6,999,295
2.595%, 3M LIBOR + 0.150%, 04/18/19 (a)		7,000,000		6,995,992
2.658%, 3M LIBOR + 0.250%, 04/08/19 (a)		7,000,000		7,002,194
3.012%, 3M LIBOR + 0.190%, 09/27/19 (a)		5,000,000		5,000,000
Canadian Imperial Bank of Commerce (NY) 2.547%, 1M LIBOR + 0.160%, 04/10/19 (a)		7,000,000		6,998,870
2.765%, 1M LIBOR + 0.310%, 07/16/19 (a)		7,000,000		6,999,713
2.806%, 1M LIBOR + 0.300%, 07/25/19 (a)		6,000,000		5,999,997
Citibank N.A. (NY) 2.430%, 01/03/19		4,000,000		3,999,978
Mizuho Bank, Ltd. (NY) 2.595%, 3M LIBOR + 0.150%, 04/18/19 (a)		5,000,000		4,999,835
Nordea Bank AB 2.400%, 01/28/19		14,240,000		14,238,482
Oversea-Chinese Banking Corp., Ltd. 2.595%, 1M LIBOR + 0.140%, 01/18/19 (a)		8,000,000		8,000,528
Royal Bank of Canada (NY) 2.765%, 1M LIBOR + 0.310%, 08/16/19 (a)		8,000,000		7,999,152
2.795%, 3M LIBOR + 0.150%, 05/20/19 (a)		6,500,000		6,500,940
Skandinaviska Enskilda Banken AB 2.815%, 3M LIBOR + 0.120%, 06/14/19 (a)		8,000,000		7,999,853
Standard Chartered Bank 2.922%, 3M LIBOR + 0.100%, 03/25/19 (a)		7,000,000		6,999,192
Sumitomo Mitsui Banking Corp. (NY) 2.510%, 03/01/19		10,000,000		9,998,109
2.546%, 3M LIBOR + 0.110%, 04/15/19 (a)		12,000,000		11,999,624
Sumitomo Mitsui Trust Bank, Ltd. (NY) 2.420%, 01/02/19		10,000,000		9,999,984
2.746%, 1M LIBOR + 0.240%, 02/26/19 (a)		10,000,000		9,996,687
2.829%, 3M LIBOR + 0.200%, 08/16/19 (a)		4,000,000		3,999,967
Svenska Handelsbanken AB 2.633%, 1M LIBOR + 0.250%, 05/07/19 (a)		9,000,000		8,999,997
Swedbank AB 2.739%, 1M LIBOR + 0.260%, 05/21/19 (a)		15,000,000		14,988,168
				203,207,092
Commercial Paper—55.8%
Albion Capital Corp. 1.273%, 01/02/19 (b)		14,387,000		14,385,120
Antalis S.A. 1.917%, 01/04/19 (b)		14,773,000		14,768,947
2.550%, 01/24/19 (b)		10,000,000		9,983,067
ASB Finance, Ltd. 2.765%, 3M LIBOR + 0.150%, 05/10/19 (a)		11,750,000		11,751,573
Atlantic Asset Securitization LLC 2.306%, 01/11/19 (b)		30,000,000		29,977,129
Bayeriche Landesbank (NY) 1.318%, 01/02/19 (b)		7,000,000		6,999,071
2.750%, 01/03/19 (b)		14,000,000		14,000,320
Commercial Paper—(Continued)
Bedford Row Funding Corp. 2.670%, 1M LIBOR + 0.270%, 02/11/19 (a)		8,000,000		8,002,040
2.689%, 1M LIBOR + 0.340%, 08/02/19 (a)		5,000,000		5,000,595
Chariot Funding LLC 2.862%, 04/30/19 (b)		14,000,000		13,862,333
3.043%, 06/11/19 (b)		10,000,000		9,866,170
Credit Industriel et Commercial (NY) 2.498%, 03/01/19 (b)		10,000,000		9,958,840
Crown Point Capital LLC 2.520%, 01/18/19 (b)		7,000,000		6,999,953
2.720%, 02/06/19 (b)		9,000,000		9,001,130
Erste Abwicklungsanstalt 2.720%, 03/08/19 (b)		9,000,000		8,954,105
Export Development Corp. 1.267%, 01/02/19 (b)		25,000,000		24,996,803
Federation des Caisses Desjardins du Quebec 2.652%, 1M LIBOR + 0.220%, 08/13/19 (a)		5,300,000		5,296,502
2.770%, 1M LIBOR + 0.370%, 12/10/19 (a)		7,000,000		6,999,902
HSBC Bank plc 2.637%, 3M LIBOR + 0.150%, 04/24/19 (a)		8,000,000		7,999,959
3.062%, 3M LIBOR + 0.240%, 03/27/19 (a)		5,000,000		5,001,813
ING U.S. Funding LLC 2.525%, 3M LIBOR + 0.100%, 04/12/19 (a)		8,000,000		7,999,980
2.570%, 3M LIBOR + 0.160%, 01/07/19 (a)		5,000,000		5,000,055
2.789%, 1M LIBOR + 0.310%, 05/21/19 (a)		8,000,000		8,000,104
JP Morgan Securities LLC 2.468%, 01/28/19 (b)		5,000,000		4,990,029
KBC Bank NV 2.553%, 02/05/19 (b)		5,000,000		4,986,785
Landesbank Baden-Wuettertemberg 2.474%, 01/16/19 (b)		5,000,000		4,994,500
Lloyds Bank plc 2.569%, 1M LIBOR + 0.220%, 01/02/19 (a)		7,000,000		7,000,056
Macquarie Bank, Ltd., London 2.702%, 02/12/19 (b)		8,000,000		7,974,372
Matchpoint Finance plc 1.227%, 01/02/19 (b)		9,000,000		8,998,729
Mizuho Bank, Ltd. (NY) 2.401%, 01/30/19 (b)		10,000,000		9,979,000
National Australia Bank, Ltd. 2.599%, 1M LIBOR + 0.250%, 04/02/19 (a)		8,000,000		8,001,752
National Securities Clearing Corp. 2.329%, 01/11/19 (b)		12,135,000		12,126,101
2.520%, 03/27/19 (b)		7,000,000		6,954,281
NRW Bank 2.672%, 02/12/19 (b)		7,000,000		6,978,111
2.716%, 02/22/19 (b)		10,000,000		9,960,927
Old Line Funding LLC 2.840%, 04/26/19 (b)		8,500,000		8,420,381
OMERS Finance Trust 2.164%, 01/09/19 (b)		7,386,000		7,381,559
Oversea-Chinese Banking Corp., Ltd. 2.550%, 1M LIBOR + 0.160%, 04/08/19 (a)		7,000,000		6,999,503
Sumitomo Mitsui Trust Bank, Ltd. 2.733%, 02/28/19 (b)		10,000,000		9,956,782

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Schedule of Investments as of December 31, 2018

Short-Term Investments—(Continued)

Security Description	Principal Amount*		Value
Commercial Paper—(Continued)
Suncorp Group, Ltd. 2.263%, 01/09/19 (b)		10,000,000	$	9,993,632
Toronto-Dominion Bank 2.687%, 1M LIBOR + 0.300%, 06/09/19 (a)		5,000,000		4,996,590
2.730%, 05/10/19 (b)		3,125,000		3,123,237
UBS AG
2.721%, 3M LIBOR + 0.180%, 08/01/19 (144A) (a)		5,000,000		4,999,397
2.738%, 3M LIBOR + 0.330%, 04/04/19 (a)		5,000,000		5,002,633
2.749%, 1M LIBOR + 0.400%, 07/02/19 (144A) (a)		5,000,000		5,001,130
2.765%, 1M LIBOR + 0.420%, 05/31/19 (a)		7,000,000		7,004,459
2.766%, 1M LIBOR + 0.260%, 08/28/19 (a)		5,500,000		5,497,569
3.314%, 3M LIBOR + 0.320%, 12/19/19 (a)		4,000,000		3,999,994
United Overseas Bank, Ltd.
2.302%, 01/17/19 (b)		7,000,000		6,991,858
2.881%, 04/05/19 (b)		7,000,000		6,946,061
2.931%, 05/17/19 (b)		10,000,000		9,890,172
Westpac Banking Corp.
2.707%, 1M LIBOR + 0.320%, 11/08/19 (a)		7,000,000		6,997,998
2.771%, 3M LIBOR + 0.180%, 11/01/19 (a)		6,000,000		5,999,970
				456,953,079
Repurchase Agreements—12.6%
Bank of America Securities, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $2,750,451; collateralized by U.S. Treasury Note at 2.000%, maturing 09/30/20, with a market value of $2,792,707		2,750,000		2,750,000
JPMorgan Securities, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $100,016,389; collateralized by U.S. Treasury Note at 1.875%, maturing 09/30/22, with a market value of $101,536,616		100,000,000		100,000,000
				102,750,000

Security Description	Principal Amount*		Value
U.S. Treasury—6.7%
U.S. Treasury Bill
2.185%, 01/15/19 (b)		25,000,000	$	24,979,171
2.248%, 01/22/19 (b)		30,000,000		29,961,085
				54,940,256
Total Short-Term Investments (Cost $817,909,630)				817,850,427
Total Investments—99.9% (Cost $817,909,630)				817,850,427
Other assets and liabilities (net)—0.1%				1,053,808
Net Assets—100.0%			$	818,904,235

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(b)	The rate shown represents current yield to maturity.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $10,000,527, which is 1.2% of net assets.
(LIBOR)—	London Interbank Offered Rate

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Total Short-Term Investments*	$	—	$	817,850,427	$	—	$	817,850,427
Total Investments	$	—	$	817,850,427	$	—	$	817,850,427

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a)	$	715,100,427
Repurchase Agreements at value which equals cost		102,750,000
Cash		23,300
Receivable for:
Fund shares sold		902,920
Interest		1,302,459
Prepaid expenses		2,092
Total Assets		820,081,198
Liabilities
Payables for:
Fund shares redeemed		595,381
Accrued Expenses:
Management fees		254,664
Distribution and service fees		98,562
Deferred trustees’ fees		111,631
Other expenses		116,725
Total Liabilities		1,176,963
Net Assets	$	818,904,235
Net Assets Consist of:
Paid in surplus	$	805,869,815
Distributable earnings (Accumulated losses)		13,034,420
Net Assets	$	818,904,235
Net Assets
Class A	$	307,936,890
Class B		412,450,705
Class E		98,516,640
Capital Shares Outstanding*
Class A		3,031,564
Class B		4,065,008
Class E		970,352
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	101.58
Class B		101.46
Class E		101.53

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments, excluding repurchase agreements, was $715,159,630.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Interest	$	17,431,707
Total investment income		17,431,707
Expenses
Management fees		2,844,625
Administration fees		33,661
Custodian and accounting fees		62,346
Distribution and service fees—Class B		993,914
Distribution and service fees—Class E		159,943
Audit and tax services		32,428
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		78,105
Insurance		5,424
Miscellaneous		14,914
Total expenses		4,304,411
Less management fee waiver		(203,187	)
Net expenses		4,101,224
Net Investment Income		13,330,483
Net Realized and Unrealized Gain (Loss)
Net realized gain on investments		4,146
Net change in unrealized depreciation on investments		(14,880	)
Net realized and unrealized loss		(10,734	)
Net Increase in Net Assets From Operations	$	13,319,749

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	13,330,483		$	6,961,274
Net realized gain		4,146			38,219
Net change in unrealized depreciation		(14,880	)		(321,313	)
Increase in net assets from operations		13,319,749			6,678,180
From Distributions to Shareholders (a)
Class A		(3,163,167	)		(1,179,689	)
Class B		(2,959,848	)		(338,609	)
Class E		(916,931	)		(217,292	)
Total distributions		(7,039,946	)		(1,735,590	)
Decrease in net assets from capital share transactions		(31,264,205	)		(133,229,625	)
Total decrease in net assets		(24,984,402	)		(128,287,035	)
Net Assets
Beginning of period		843,888,637			972,175,672
End of period	$	818,904,235		$	843,888,637	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,271,421		$	128,523,646			1,151,677		$	115,741,452
Reinvestments		31,481			3,163,167			11,762			1,179,689
Redemptions		(1,332,136	)		(134,694,295	)		(1,644,910	)		(165,301,654	)
Net decrease		(29,234	)	$	(3,007,482	)		(481,471	)	$	(48,380,513	)
Class B
Sales		1,727,443		$	174,497,711			1,165,911		$	117,009,779
Reinvestments		29,448			2,959,848			3,376			338,609
Redemptions		(1,841,534	)		(185,896,483	)		(1,809,709	)		(181,623,509	)
Net decrease		(84,643	)	$	(8,438,924	)		(640,422	)	$	(64,275,121	)
Class E
Sales		172,508		$	17,426,393			167,051		$	16,780,356
Reinvestments		9,123			916,931			2,166			217,292
Redemptions		(377,825	)		(38,161,123	)		(374,119	)		(37,571,639	)
Net decrease		(196,194	)	$	(19,817,799	)		(204,902	)	$	(20,573,991	)
Decrease derived from capital shares transactions				$	(31,264,205	)				$	(133,229,625	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 7). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(1,172,909	)	$	(6,780	)
Class B		(329,579	)		(9,030	)
Class E		(214,780	)		(2,512	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $6,775,731 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	100.82		$	100.28		$	100.00		$	100.00		$	100.00
Income (Loss) from Investment Operations
Net investment income (a)		1.81			0.92			0.32	(b)		0.00	(c)		0.00
Net realized and unrealized gain (loss)		0.00	(d)		(0.03	)		0.03			0.00			0.00
Total income (loss) from investment operations		1.81			0.89			0.35			0.00	(c)		0.00
Less Distributions
Distributions from net investment income		(1.04	)		(0.35	)		(0.07	)		(0.00	)(e)		0.00
Distributions from net realized capital gains		(0.01	)		(0.00	)(f)		(0.00	)(f)		0.00			0.00
Total distributions		(1.05	)		(0.35	)		(0.07	)		(0.00	)(e)		0.00
Net Asset Value, End of Period	$	101.58		$	100.82		$	100.28		$	100.00		$	100.00
Total Return (%) (g)		1.81			0.89			0.35			0.00			0.00
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.39			0.39			0.38			0.37			0.37
Net ratio of expenses to average net assets (%) (h)		0.36			0.36			0.35			0.25			0.20
Ratio of net investment income to average net assets (%)		1.79			0.91			0.32	(b)		0.00	(i)		0.00
Portfolio turnover rate (%)		0	(j)		0	(j)		0	(j)		N/A			N/A
Net assets, end of period (in millions)	$	307.9		$	308.6		$	355.2		$	406.8		$	483.7
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	100.68		$	100.11		$	100.00		$	100.00		$	100.00
Income (Loss) from Investment Operations
Net investment income (a)		1.55			0.66			0.08	(b)		0.00			0.00
Net realized and unrealized gain (loss)		0.00	(d)		(0.02	)		0.03			0.00			0.00
Total income (loss) from investment operations		1.55			0.64			0.11			0.00			0.00
Less Distributions
Distributions from net investment income		(0.76	)		(0.07	)		(0.00	)(e)		0.00			0.00
Distributions from net realized capital gains		(0.01	)		(0.00	)(f)		(0.00	)(f)		0.00			0.00
Total distributions		(0.77	)		(0.07	)		(0.00	)		0.00			0.00
Net Asset Value, End of Period	$	101.46		$	100.68		$	100.11		$	100.00		$	100.00
Total Return (%) (g)		1.55			0.63			0.11			0.00			0.00
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.64			0.64			0.63			0.62			0.62
Net ratio of expenses to average net assets (%) (h)		0.61			0.61			0.59			0.25			0.20
Ratio of net investment income to average net assets (%)		1.53			0.66			0.08	(b)		0.00			0.00
Portfolio turnover rate (%)		0	(j)		0	(j)		0	(j)		N/A			N/A
Net assets, end of period (in millions)	$	412.5		$	417.8		$	479.6		$	547.0		$	554.2

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015		2014
Net Asset Value, Beginning of Period	$	100.74		$	100.18		$	100.00		$	100.00	$	100.00
Income (Loss) from Investment Operations
Net investment income (a)		1.64			0.76			0.17	(b)		0.00		0.00
Net realized and unrealized gain (loss)		0.02			(0.03	)		0.03			0.00		0.00
Total income (loss) from investment operations		1.66			0.73			0.20			0.00		0.00
Less Distributions
Distributions from net investment income		(0.86	)		(0.17	)		(0.02	)		0.00		0.00
Distributions from net realized capital gains		(0.01	)		(0.00	)(f)		(0.00	)(f)		0.00		0.00
Total income (loss) distributions		(0.87	)		(0.17	)		(0.02	)		0.00		0.00
Net Asset Value, End of Period	$	101.53		$	100.74		$	100.18		$	100.00	$	100.00
Total Return (%) (g)		1.66			0.73			0.20			0.00		0.00
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.54			0.54			0.53			0.52		0.52
Net ratio of expenses to average net assets (%) (h)		0.51			0.51			0.50			0.25		0.20
Ratio of net investment income to average net assets (%)		1.62			0.76			0.17	(b)		0.00		0.00
Portfolio turnover rate (%)		0	(j)		0	(j)		0	(j)		N/A		N/A
Net assets, end of period (in millions)	$	98.5		$	117.5		$	137.4		$	154.2	$	175.5

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to $0.01 per share and 0.01% of average net assets, respectively.
(c)	Net investment income (loss) was less than $0.01.
(d)	Net realized and unrealized gain (loss) on investments was less than $0.01.
(e)	Distributions from net investment income were less than $0.01.
(f)	Distributions from net realized capital gains were less than $0.01.
(g)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(h)	Includes the effects of the management fee waivers and voluntary distribution & service fee waiver (see Note 4 of the Notes to Financial Statements).
(i)	Ratio of net investment income (loss) to average net assets was less than 0.01%.
(j)	There were no long term transactions during the years ended December 31, 2018, 2017 and 2016.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is BlackRock Ultra-Short Term Bond Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements -The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each as “pricing services”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

BHFTII-11

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had investments in repurchase agreements with a gross value of $102,750,000, which is reflected as repurchase agreement on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant

BHFTII-12

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$2,844,625		0.350	%	Of the first $1 billion
		0.300	%	Of amount in excess of $1 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. BlackRock Advisors, LLC (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers- Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” as follows:

% per annum	Average Daily Net Assets
0.025%		Of the first $1 billion

For the period May 1, 2017 to April 30, 2018, an identical expense agreement was in place. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the average daily net assets attributable to the Class B, Class D, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a Distribution Fee at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class D, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15%

BHFTII-13

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

5. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

6. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	817,909,631
Gross unrealized appreciation		24,456
Gross unrealized depreciation		(83,660	)
Net unrealized appreciation (depreciation)	$	(59,204	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$7,039,946	$	1,735,590	$	—	$	—	$	7,039,946	$	1,735,590

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$13,214,833	$	—	$	(59,204	)	$	—	$	13,155,629

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

7. Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards UpdateNo. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20)—Premium Amortization on Purchased Callable Debt Securities (“ASU2017-08”) which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently assessing the impact of ASU 2017-08, but does not believe the adoption will have a material impact on the Portfolios’ financial statements.

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective

BHFTII-14

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-15

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Ultra-Short Term Bond Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the BlackRock Ultra-Short Term Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the BlackRock Ultra-Short Term Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-16

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-17

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-18

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-19

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-20

Brighthouse Funds Trust II

BlackRock Ultra-Short Term Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

BlackRock Ultra-Short Term Bond Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and BlackRock Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018, and underperformed its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the Bank of America / Merrill Lynch3-Month Treasury Bill Index, for theone-, three-, and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions. The Board further noted that, prior to May 1, 2016, the Portfolio operated as a money market fund subject to the requirements set forth in Rule2a-7 under the Investment Company Act of 1940 and noted that the Adviser and its affiliates had provided significant subsidizations to the Portfolio by voluntarily waiving a portion of the Adviser’s investment advisory fee and all of the Portfolio’s Rule12b-1 fees in order to maintain a stable net asset value per share, which contributed positively to the Portfolio’s performance.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median, and were the lowest in the Expense Group, Expense Universe and theSub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-21

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Managed by Artisan Partners Limited Partnership

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Brighthouse/Artisan Mid Cap Value Portfolio returned-13.20%,-13.42%, and-13.33%, respectively. The Portfolio’s benchmark, the Russell Midcap Value Index¹, returned-12.29%.

MARKET ENVIRONMENT / CONDITIONS

Investors faced a rocky year amid persistent heightened volatility in financial markets, punctuated by major price declines in February, October, and December. The dominant concerns were largely consistent throughout the year—namely, ratcheting trade tensions, particularly between the U.S. and China; tightening monetary policy; and the potential for slower economic growth, especially in China and Europe.

The U.S. economy strengthened during the year as a substantial fiscal stimulus in the form of tax cuts contributed to stronger economic growth and corporate profits. Tighter U.S. monetary policy was a prevalent theme this year. Citing strong economic fundamentals, the Federal Reserve continued to normalize policy—hiking its benchmark rate four times in 2018 and continuing to unwind its balance sheet. Even so, conflicting signals about the underlying health of economic conditions and financial markets’ weakness contributed to investors’ questioning whether the Federal Reserve was being too aggressive in its approach.

Most major indices closed in negative territory for both the fourth quarter and the year. After a rockier start, emerging markets held up better than their developed-world counterparts in the fourth quarter, but still trailed for the year. The U.S. was among the bottom-performers in the fourth quarter, but led most major indices for 2018—despite notching the S&P 500’s worst calendar year since the global financial crisis’ conclusion.

For the Russell Midcap Value Index, the Energy sector was the big loser on the year as oil prices collapsed. The Consumer Discretionary and Materials sectors suffered notably. Utilities concluded the year in the black as investors shunned more cyclically oriented names throughout the year. Led by the likes of Twitter and TripAdvisor, the Communications Services sector also finished the year with a positive return. Value stocks generally trailed growth stocks for the year. From a size perspective, larger companies tended to hold up better for the year overall as volatility likely swayed investors’ preference toward the liquidity of largermarket-cap stocks.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

Over the12-months ending December 31, 2018, the Portfolio trailed the Russell Midcap Value Index. In the index, defensive and interest-rate sensitive sectors—Utilities and Real Estate, for example, where we hadlittle-to-no exposure—performed relatively better, contributing to the drag on relative returns.

Judging by headlines alone, it was a tough year for car manufacturers. Trump’s trade war complicated export markets and raised steel prices, squeezing manufacturers on both sides of their ledgers. Palace intrigue embroiled former Nissan (Japan) and Renault (France) chairman Carlos Ghosn. GM announced layoffs and plant closures as it halted production on a handful of brands. While the Portfolio does not hold those particular names, the impacts have been widespread, and it’s of little surprise the largest detractor in the Portfolio over the reporting period was Delphi Technologies (United Kingdom), an automotive parts supplier to manufacturers. In addition to the sector’s woes, the market continues to have what we consider a misunderstanding of Delphi’s long-term prospects. We were initially attracted to the business due to an undemanding valuation. The business fell further out of favor after the initial purchase as investors fretted the combination of a slowing auto market, the potential impact of emission regulations in Europe and declining expectations for Chinese auto sales in the second half of the year. At year end, we continued to believe Delphi was executing well against a challenging backdrop and it remained poised to benefit from the trend of cars being more fuel efficient and producing less emissions.

Weakness in airline stocks and the outlook for consumer spending bled into the aircraft lessors, and Air Lease Corp. was among the largest detractors over the year. However, leasing companies should generally be less affected by carrier profitability given the contractual (and asset-backed) nature of the business. Overall, it’s demand for air travel, which may wane during cyclical downturns but should trend higher over time, that should preoccupy leasing firms. At year end Air Lease remained priced at a discount to book value, and we added to the position in the fourth quarter on the weakness as we continued to believe management had positioned the company as the industry leader.

However, overall stock selection was additive to performance, particularly in Communication Services, Financials, and Consumer Staples names. The Portfolio’s limited exposure to Real Estate was also positive astriple-net lease real estate investment trust operator Store Capital was a top contributor.

A historic equity market selloff in December rocked the Energy sector, where the Portfolio underperformed, amid sinking oil prices. Cimarex Energy, an exploration and production firm, was among the top detractors. But even with crude oil prices off a staggering $30 per barrel during the fourth quarter, and Energy among the worst performing sectors in the index, firms like Andeavor (now a part of Marathon Petroleum) and Hess remained among top contributors, based largely on strength earlier in the year, when rising crude oil prices gave us an opportunity to trim positions on commodity strength. Hess had also benefited from more good news in their Liza development off Guyana.

BHFTII-1

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Managed by Artisan Partners Limited Partnership

Portfolio Manager Commentary*—(Continued)

The top individual contributor was InterActiveCorp (“IAC”). Shares of IAC, a diversified media and internet company, continued to be a standout (the company operates sites such as HomeAdvisor, Match, and Tinder). Its businesses are executing well—the merger of Angie’s List and HomeAdvisor is complete, and Match Group continues to grow and improve monetization. IAC meets the team’s margin of safety criteria, and we like that it’s led by Barry Diller, who has a strong record as a prudent capital allocator.

Another top contributor was TripAdvisor, a leading online travel research company. Their efforts to trim marketing expenses weighed on revenues, but improved margins. It remains an industry-leading platform that generates free-cash flow and maintains a sound balance sheet while still growing its unique travel review content and operating the world’s second-largest restaurant reservation system.

Financials was a top contributing sector in 2018 and weakness in the Financials sector over the year provided more attractive prices for existing and new positions. We added to the existing holdings of M&T Bank Corp., Fifth Third Bancorp, and Pinnacle Financial Partners. Given the backdrop, we also initiated positions in SunTrust Banks and BOK Financial Corp. during the reporting period.

The team’s decisions are always made from thebottom-up, without regard to index construction. Atperiod-end, the Portfolio had above-benchmark exposure to the Communications Services, Financials, Consumer Discretionary, Industrials, Materials, and Energy sectors. Conversely, the Portfolio had below-benchmark exposure to the Consumer Staples, Health Care, Information Technology, Real Estate, and Utilities sectors.

James C. Kieffer

Thomas A. Reynolds IV

Daniel L. Kane

Portfolio Managers

Artisan Partners Limited Partnership

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

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Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP VALUE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse/Artisan Mid Cap Value Portfolio
Class A		-13.20		2.14		11.46
Class B		-13.42		1.88		11.18
Class E		-13.33		1.98		11.29
Russell Midcap Value Index		-12.29		5.44		13.03

¹ The Russell Midcap Value Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with lower price-to-book ratios and forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
IAC/InterActiveCorp		3.6
Celanese Corp.		3.4
Kroger Co. (The)		3.4
AutoNation, Inc.		2.8
Torchmark Corp.		2.8
M&T Bank Corp.		2.8
AMERCO		2.7
Air Lease Corp.		2.7
Fifth Third Bancorp		2.7
Qurate Retail, Inc.		2.6

Top Sectors

	% of Net Assets
Financials		25.3
Consumer Discretionary		14.1
Communication Services		13.5
Industrials		13.3
Materials		7.4
Energy		6.9
Information Technology		4.9
Health Care		3.7
Consumer Staples		3.4
Real Estate		3.1

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Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse/Artisan Mid Cap Value Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.81	%	$	1,000.00	$	856.80	$	3.79
	Hypothetical*		0.81	%	$	1,000.00	$	1,021.12	$	4.13
Class B (a)	Actual		1.06	%	$	1,000.00	$	855.70	$	4.96
	Hypothetical*		1.06	%	$	1,000.00	$	1,019.86	$	5.40
Class E (a)	Actual		0.96	%	$	1,000.00	$	856.10	$	4.49
	Hypothetical*		0.96	%	$	1,000.00	$	1,020.37	$	4.89

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

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Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—95.6% of Net Assets

Security Description	Shares		Value
Auto Components—3.8%
Delphi Technologies plc (a)		721,833	$	10,336,648
Gentex Corp. (a)		1,035,122		20,919,816
				31,256,464
Banks—9.1%
BOK Financial Corp.		159,648		11,706,988
Fifth Third Bancorp		942,122		22,168,131
M&T Bank Corp.		159,730		22,862,155
Pinnacle Financial Partners, Inc. (a)		260,648		12,015,873
SunTrust Banks, Inc.		132,228		6,669,580
				75,422,727
Capital Markets—1.9%
Intercontinental Exchange, Inc.		207,035		15,595,947
Chemicals—7.4%
Axalta Coating Systems, Ltd. (b)		716,303		16,775,816
Celanese Corp. (a)		318,164		28,625,215
Nutrien, Ltd. (a)		343,362		16,138,014
				61,539,045
Construction & Engineering—3.5%
Fluor Corp.		375,976		12,106,427
Jacobs Engineering Group, Inc.		289,382		16,917,272
				29,023,699
Consumer Finance—1.9%
Synchrony Financial		670,000		15,718,200
Diversified Consumer Services—2.4%
H&R Block, Inc. (a)		798,695		20,262,892
Electronic Equipment, Instruments & Components—2.3%
Arrow Electronics, Inc. (b)		278,276		19,187,130
Equity Real Estate Investment Trusts—3.1%
Equity Commonwealth		605,047		18,157,460
STORE Capital Corp.		279,831		7,922,016
				26,079,476
Food & Staples Retailing—3.4%
Kroger Co. (The) (a)		1,017,885		27,991,838
Health Care Equipment & Supplies—2.2%
DENTSPLY SIRONA, Inc.		487,254		18,130,721
Health Care Providers & Services—1.6%
AmerisourceBergen Corp. (a)		175,436		13,052,438
Insurance—12.4%
Alleghany Corp.		19,464		12,132,301
Aon plc		120,079		17,454,683
Arch Capital Group, Ltd. (b)		724,003		19,345,360
Insurance—(Continued)
Fairfax Financial Holdings, Ltd.		10,044		4,420,164
Loews Corp. (a)		294,050		13,385,156
Progressive Corp. (The)		227,494		13,724,713
Torchmark Corp.		307,093		22,887,641
				103,350,018
Interactive Media & Services—5.0%
IAC/InterActiveCorp (b)		164,322		30,077,499
TripAdvisor, Inc. (b)		211,731		11,420,770
				41,498,269
Internet & Direct Marketing Retail—5.1%
Expedia Group, Inc.		91,125		10,265,231
Liberty Expedia Holdings, Inc. - Class A (b)		260,724		10,196,916
Qurate Retail, Inc. (b)		1,127,272		22,004,349
				42,466,496
Marine—2.4%
Kirby Corp. (a) (b)		291,804		19,655,917
Media—8.5%
CBS Corp. - Class B		412,743		18,045,124
GCI Liberty, Inc. - Class A (a) (b)		410,783		16,907,828
News Corp. - Class A		1,277,829		14,503,359
Omnicom Group, Inc. (a)		289,818		21,226,271
				70,682,582
Oil, Gas & Consumable Fuels—6.9%
Apache Corp. (a)		303,009		7,953,986
Cimarex Energy Co. (a)		230,957		14,238,499
Devon Energy Corp.		520,715		11,736,916
Hess Corp.		278,967		11,298,163
Marathon Petroleum Corp.		203,853		12,029,366
				57,256,930
Road & Rail—4.7%
AMERCO (a)		68,932		22,617,278
Ryder System, Inc.		351,737		16,936,137
				39,553,415
Semiconductors & Semiconductor Equipment—2.6%
Analog Devices, Inc. (a)		254,856		21,874,291
Specialty Retail—2.7%
AutoNation, Inc. (a) (b)		641,521		22,902,300
Trading Companies & Distributors—2.7%
Air Lease Corp. (a)		733,943		22,172,418
Total Common Stocks (Cost $701,138,165)				794,673,213

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2018

Short-Term Investment—4.8%

Security Description	Principal Amount*		Value
Repurchase Agreement—4.8%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $39,451,911; collateralized by U.S. Treasury Note at 2.875%, maturing 09/30/23, with a market value of $40,242,774.		39,449,281	$	39,449,281
Total Short-Term Investments (Cost $39,449,281)				39,449,281
Securities Lending Reinvestments (c)—18.7%
Certificates of Deposit—11.9%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (d)		5,000,000		4,999,570
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (d)		2,000,000		1,999,950
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (d)		4,000,000		4,001,596
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		4,000,000		3,999,620
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (d)		4,000,000		3,999,488
2.740%, 1M LIBOR + 0.270%, 07/19/19 (d)		1,000,000		999,594
China Construction Bank Corp. 2.550%, 01/07/19		2,000,000		2,000,000
Citibank N.A. 2.490%, 02/04/19		4,000,000		3,999,444
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (d)		1,500,000		1,500,004
2.642%, 1M LIBOR + 0.210%, 09/13/19 (d)		1,500,000		1,500,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		2,000,000		2,000,628
Credit Agricole S.A. 2.500%, 02/12/19		2,000,000		1,999,660
2.799%, 1M LIBOR + 0.320%, 05/21/19 (d)		3,000,000		3,000,189
Credit Industriel et Commercial Zero Coupon, 01/25/19		4,442,527		4,492,350
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		5,000,000		4,999,630
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		2,977,462		2,996,940
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (d)		1,000,000		999,370
2.810%, 1M LIBOR + 0.370%, 02/14/19 (d)		4,000,000		4,000,748
Royal Bank of Canada New York 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		3,000,000		2,996,931
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (d)		6,000,000		5,999,508
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (d)		1,000,000		999,556
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (d)		4,000,000		3,999,884
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (d)		5,000,000		4,999,900
Certificates of Deposit—(Continued)
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		2,000,000		1,999,266
2.700%, 02/25/19		2,000,000		2,000,184
Sumitomo Mitsui Banking Corp., New York 2.665%, 1M LIBOR + 0.210%, 05/17/19 (d)		3,000,000		2,998,740
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (d)		4,000,000		3,999,820
2.767%, 1M LIBOR + 0.380%, 12/10/19 (d)		2,000,000		1,999,934
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		2,000,000		1,998,096
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (d)		1,000,000		1,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (d)		7,000,000		7,006,072
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		3,000,000		2,999,981
				98,486,653
Commercial Paper—3.0%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (d)		3,000,000		2,999,169
Banco Santander S.A. 2.740%, 02/07/19		2,978,993		2,991,264
Bank of China, Ltd. 2.690%, 01/17/19		3,973,100		3,995,304
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (d)		4,000,000		4,000,000
Matchpoint Finance plc 2.890%, 05/08/19		1,970,939		1,978,506
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		5,000,000		5,001,225
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (d)		4,000,000		3,999,840
				24,965,308
Repurchase Agreements—3.8%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $2,015,333; collateralized by various Common Stock with an aggregate market value of $2,200,367.		2,000,000		2,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $2,005,425; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $2,176,637.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,007,513; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $1,020,000.		1,000,000		1,000,000

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $900,125; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $918,001.		900,000	$	900,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $700,107; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $714,000.		700,000		700,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $3,517,858; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $3,587,577.		3,517,233		3,517,233
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $8,563,863; collateralized by various Common Stock with an aggregate market value of $9,350,000.		8,500,000		8,500,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $10,001,422; collateralized by various Common Stock with an aggregate market value of $11,132,123.		10,000,000		10,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,000,427; collateralized by various Common Stock with an aggregate market value of $3,339,637.		3,000,000		3,000,000
				31,617,233
Total Securities Lending Reinvestments (Cost $155,074,389)				155,069,194
Total Investments—119.1% (Cost $895,661,835)				989,191,688
Other assets and liabilities (net)—(19.1)%				(158,317,608	)
Net Assets—100.0%			$	830,874,080

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $152,453,105 and the collateral received consisted of cash in the amount of $154,960,254. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(b)	Non-income producing security.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2018

Fair value hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Total Common Stocks*	$	794,673,213	$	—		$	—	$	794,673,213
Total Short-Term Investment*		—		39,449,281			—		39,449,281
Total Securities Lending Reinvestments*		—		155,069,194			—		155,069,194
Total Investments	$	794,673,213	$	194,518,475		$	—	$	989,191,688
Collateral for Securities Loaned (Liability)	$	—	$	(154,960,254	)	$	—	$	(154,960,254	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	989,191,688
Receivable for:
Fund shares sold		1,303,828
Dividends and interest		1,007,753
Prepaid expenses		2,638
Total Assets		991,505,907
Liabilities
Collateral for securities loaned		154,960,254
Payables for:
Investments purchased		4,527,642
Fund shares redeemed		248,350
Accrued Expenses:
Management fees		565,379
Distribution and service fees		72,416
Deferred trustees’ fees		111,694
Other expenses		146,092
Total Liabilities		160,631,827
Net Assets	$	830,874,080
Net Assets Consist of:
Paid in surplus	$	624,496,290
Distributable earnings (Accumulated losses)		206,377,790
Net Assets	$	830,874,080
Net Assets
Class A	$	476,296,887
Class B		293,032,970
Class E		61,544,223
Capital Shares Outstanding*
Class A		2,248,197
Class B		1,435,198
Class E		296,039
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	211.86
Class B		204.18
Class E		207.89

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $895,661,835.
(b)	Includes securities loaned at value of $152,453,105.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	14,309,615
Interest		494,999
Securities lending income		744,946
Total investment income		15,549,560
Expenses
Management fees		8,448,304
Administration fees		40,660
Custodian and accounting fees		64,349
Distribution and service fees—Class B		903,801
Distribution and service fees—Class E		112,452
Audit and tax services		44,663
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		123,015
Insurance		6,828
Miscellaneous		19,005
Total expenses		9,842,128
Less management fee waiver		(471,918	)
Less broker commission recapture		(14,671	)
Net expenses		9,355,539
Net Investment Income		6,194,021
Net Realized and Unrealized Gain (Loss)
Net realized gain on investments		107,093,791
Net change in unrealized depreciation on investments		(239,582,018	)
Net realized and unrealized loss		(132,488,227	)
Net Decrease in Net Assets From Operations	$	(126,294,206	)

(a) Net of foreign withholding taxes of $123,956.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	6,194,021		$	6,094,958
Net realized gain		107,093,791			73,406,636
Net change in unrealized appreciation (depreciation)		(239,582,018	)		56,060,091
Increase (decrease) in net assets from operations		(126,294,206	)		135,561,685
From Distributions to Shareholders (a)
Class A		(33,856,446	)		(4,618,720	)
Class B		(21,308,286	)		(1,950,478	)
Class E		(4,423,964	)		(461,275	)
Total distributions		(59,588,696	)		(7,030,473	)
Decrease in net assets from capital share transactions		(130,302,350	)		(120,097,285	)
Total increase (decrease) in net assets		(316,185,252	)		8,433,927
Net Assets
Beginning of period		1,147,059,332			1,138,625,405
End of period	$	830,874,080		$	1,147,059,332	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		32,409		$	7,937,023			51,236		$	12,312,536
Reinvestments		135,751			33,856,446			19,370			4,618,720
Redemptions		(529,905	)		(135,797,046	)		(279,672	)		(67,675,485	)
Net decrease		(361,745	)	$	(94,003,577	)		(209,066	)	$	(50,744,229	)
Class B
Sales		37,916		$	8,956,383			67,106		$	15,605,735
Reinvestments		88,530			21,308,286			8,460			1,950,478
Redemptions		(252,369	)		(61,489,870	)		(324,130	)		(75,831,622	)
Net decrease		(125,923	)	$	(31,225,201	)		(248,564	)	$	(58,275,409	)
Class E
Sales		9,182		$	2,128,318			7,456		$	1,758,107
Reinvestments		18,061			4,423,964			1,968			461,275
Redemptions		(46,968	)		(11,625,854	)		(56,110	)		(13,297,029	)
Net decrease		(19,725	)	$	(5,073,572	)		(46,686	)	$	(11,077,647	)
Decrease derived from capital shares transactions				$	(130,302,350	)				$	(120,097,285	)

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $5,592,206 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	259.07		$	231.28		$	213.79		$	271.79		$	268.60
Income (Loss) from Investment Operations
Net investment income (a)		1.75			1.54			1.74	(b)		2.26			2.89
Net realized and unrealized gain (loss)		(33.63	)		27.96			43.82			(23.66	)		2.25
Total income (loss) from investment operations		(31.88	)		29.50			45.56			(21.40	)		5.14
Less Distributions
Distributions from net investment income		(1.62	)		(1.71	)		(2.56	)		(3.17	)		(1.95	)
Distributions from net realized capital gains		(13.71	)		0.00			(25.51	)		(33.43	)		0.00
Total distributions		(15.33	)		(1.71	)		(28.07	)		(36.60	)		(1.95	)
Net Asset Value, End of Period	$	211.86		$	259.07		$	231.28		$	213.79		$	271.79
Total Return (%) (c)		(13.20	)		12.82			22.96			(9.44	)		1.93
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.85			0.85			0.85			0.84			0.84
Net ratio of expenses to average net assets (%) (d)		0.81			0.85			0.85			0.84			0.84
Ratio of net investment income to average net assets (%)		0.70			0.64			0.80	(b)		0.91			1.07
Portfolio turnover rate (%)		23			21			31			31			25
Net assets, end of period (in millions)	$	476.3		$	676.2		$	652.0		$	739.1		$	853.7
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	250.17		$	223.41		$	207.30		$	264.50		$	261.50
Income (Loss) from Investment Operations
Net investment income (a)		1.09			0.90			1.16	(b)		1.59			2.15
Net realized and unrealized gain (loss)		(32.43	)		27.01			42.40			(22.95	)		2.21
Total income (loss) from investment operations		(31.34	)		27.91			43.56			(21.36	)		4.36
Less Distributions
Distributions from net investment income		(0.94	)		(1.15	)		(1.94	)		(2.41	)		(1.36	)
Distributions from net realized capital gains		(13.71	)		0.00			(25.51	)		(33.43	)		0.00
Total distributions		(14.65	)		(1.15	)		(27.45	)		(35.84	)		(1.36	)
Net Asset Value, End of Period	$	204.18		$	250.17		$	223.41		$	207.30		$	264.50
Total Return (%) (c)		(13.42	)		12.54			22.65			(9.66	)		1.67
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.10			1.10			1.10			1.09			1.09
Net ratio of expenses to average net assets (%) (d)		1.06			1.10			1.10			1.09			1.09
Ratio of net investment income to average net assets (%)		0.45			0.39			0.55	(b)		0.66			0.82
Portfolio turnover rate (%)		23			21			31			31			25
Net assets, end of period (in millions)	$	293.0		$	390.5		$	404.3		$	358.7		$	446.3

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	254.48		$	227.21		$	210.43		$	267.99		$	264.86
Income (Loss) from Investment Operations
Net investment income (a)		1.36			1.15			1.40	(b)		1.85			2.43
Net realized and unrealized gain (loss)		(33.02	)		27.48			43.07			(23.28	)		2.25
Total income (loss) from investment operations		(31.66	)		28.63			44.47			(21.43	)		4.68
Less Distributions
Distributions from net investment income		(1.22	)		(1.36	)		(2.18	)		(2.70	)		(1.55	)
Distributions from net realized capital gains		(13.71	)		0.00			(25.51	)		(33.43	)		0.00
Total distributions		(14.93	)		(1.36	)		(27.69	)		(36.13	)		(1.55	)
Net Asset Value, End of Period	$	207.89		$	254.48		$	227.21		$	210.43		$	267.99
Total Return (%) (c)		(13.33	)		12.65			22.78			(9.58	)		1.78
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.00			1.00			1.00			0.99			0.99
Net ratio of expenses to average net assets (%) (d)		0.96			1.00			1.00			0.99			0.99
Ratio of net investment income to average net assets (%)		0.55			0.49			0.65	(b)		0.76			0.91
Portfolio turnover rate (%)		23			21			31			31			25
Net assets, end of period (in millions)	$	61.5		$	80.4		$	82.4		$	75.8		$	95.1

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to $0.01 per share and less than 0.01% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse/Artisan Mid Cap Value Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-14

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $39,449,281. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $31,617,233. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

BHFTII-15

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	217,283,328	$	0	$	349,908,663

During the year ended December 31, 2018, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $4,312,774 in sales of investments, which are included above, and resulted in realized gains of $598,792.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$8,448,304		0.820	%	Of the first $1 billion
		0.780	%	On amounts in excess of $1 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Artisan Partners Limited Partnership (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

BHFTII-16

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum reduction	Average Daily Net Assets
0.040%	On the first $500 million
0.050%	On the next $500 million
0.060%	On amounts in excess of $1 billion

An identical agreement was in place for the period January 1, 2018 through April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	896,728,473
Gross unrealized appreciation		166,873,584
Gross unrealized depreciation		(74,410,369	)
Net unrealized appreciation (depreciation)	$	92,463,215

BHFTII-17

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$5,318,818	$	7,030,473	$	54,269,878	$	—	$	59,588,696	$	7,030,473

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$9,892,574	$	104,133,695	$	92,463,215	$	—	$	206,489,484

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse/Artisan Mid Cap Value Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Artisan Mid Cap Value Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Artisan Mid Cap Value of the Brighthouse Funds Trust II Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-21

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-22

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-23

Brighthouse Funds Trust II

Brighthouse/Artisan Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse/Artisan Mid Cap Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Artisan Partners Limited Partnership regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year and three-year periods ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for the five-year periods ended June 30, 2018. In addition, the Board considered that the Portfolio outperformed its benchmark, the Russell Midcap Value Index, for theone-year period ended September 30, 2018, and underperformed its benchmark for the three-year and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were above the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also considered that the Portfolio’s contractualsub-advisory fees were above the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-24

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Managed by Dimensional Fund Advisors LP

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A and B shares of the Brighthouse/Dimensional International Small Company Portfolio returned-20.37% and-20.56%, respectively. The Portfolio’s benchmark, the MSCI Worldex-U.S. Small Cap Index¹, returned-18.07%.

MARKET ENVIRONMENT / CONDITIONS

In U.S. dollar terms, developedex-U.S. markets had negative performance for the year, trailing the U.S. market but outperforming emerging markets. The MSCI Worldex-USA IMI (net dividends) returned-14.7%, as compared to-5.2% for the Russell 3000 Index and-15.1% for the MSCI Emerging Markets IMI (net dividends). Most developedex-U.S. market currencies, particularly the Australian dollar and the Canadian dollar, depreciated relative to the U.S. dollar. Overall, currency movements had a negative impact on the U.S. dollar-denominated returns of the developedex-U.S. market.

Theoretical and empirical research suggests that investors can systematically pursue higher expected returns by targeting the size, relative price, and profitability dimensions in equity markets. Dimensional integrates these dimensions to emphasize stocks with smaller market capitalizations, lower relative prices, and higher profitability.

Along the market capitalization dimension, large caps (MSCI Worldex-U.S. Index, net dividends) outperformed small caps (MSCI Worldex-U.S. Small Cap Index, net dividends) by 4.0% for the year. Similarly, midcaps (MSCI Worldex-U.S. Mid Cap Index, net dividends), a subset of the MSCI Worldex-U.S. Index universe, outperformed small caps by 1.3%. Along the relative price dimension, large cap value stocks (MSCI Worldex-U.S. Value Index, net dividends) underperformed large cap growth stocks (MSCI Worldex-U.S. Growth Index, net dividends) by 1.9%, and small cap value stocks (MSCI Worldex-U.S. Small Cap Value Index, net dividends) underperformed small cap growth stocks (MSCI Worldex-U.S. Small Cap Growth Index, net dividends) by 0.6%.

It is important to consider the interactions between size, value, and profitability when reviewing the performance of the dimensions. Considering all three dimensions simultaneously, stocks with lower relative prices and higher profitability outperformed stocks with higher relative prices and lower profitability among both large and small caps. Performance of the premiums may vary depending on the particular segment of the market under analysis.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the year ended December 31, 2018, the Portfolio underperformed its benchmark by 229 basis points. The Portfolio’s general exclusion of Real Estate Investment Trusts (“REITs”) was the primary driver of underperformance, as REITs outperformed all other sectors for the year. With micro caps underperforming small caps with larger market capitalizations for the year, the Portfolio’s greater allocation to micro caps also detracted from relative performance. Conversely, the Portfolio’s exclusion of stocks with the lowest profitability and highest relative price contributed positively to relative performance.

The Portfolio held more than 3,800 securities as of December 31, 2018 and was diversified across countries and sectors.

Joseph Chi

Jed Fogdall

Arun Keswani

Bhanu Singh

Portfolio Managers

Dimensional Fund Advisors LP

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

A $10,000 INVESTMENT COMPARED TO THE MSCI WORLD EX-U.S. SMALL CAP INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse/Dimensional International Small Company Portfolio
Class A		-20.37		1.84		9.36
Class B		-20.56		1.59		9.08
MSCI Worldex-U.S. Small Cap Index		-18.07		2.25		10.06

¹ The MSCI World ex-U.S. Small Cap Index is an unmanaged index that measures the performance of stocks with market capitalizations between US $200 million and $800 million across 23 developed markets, excluding the United States. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Amer Sports Oyj		0.4
Auto Trader Group plc		0.3
GN Store Nord A/S		0.3
Galapagos NV		0.3
Hiscox, Ltd.		0.3
Rightmove plc		0.2
Rubis SCA		0.2
Enagas S.A.		0.2
Helvetia Holding AG		0.2
Bellway plc		0.2

Top Countries

	% of Net Assets
Japan		24.3
United Kingdom		15.6
Canada		8.1
Australia		6.7
Germany		6.3
Switzerland		5.1
Italy		4.0
France		3.9
Sweden		3.0
Hong Kong		2.9

BHFTII-2

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse/Dimensional International Small Company Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.92	%	$	1,000.00	$	820.00	$	4.22
	Hypothetical*		0.92	%	$	1,000.00	$	1,020.57	$	4.69
Class B (a)	Actual		1.17	%	$	1,000.00	$	818.90	$	5.36
	Hypothetical*		1.17	%	$	1,000.00	$	1,019.31	$	5.96

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—99.4% of Net Assets

Security Description	Shares		Value
Australia—6.7%
A2B Australia, Ltd.		55,813	$	86,228
Accent Group, Ltd.		90,942		76,861
Adairs, Ltd.		12,167		16,118
Adelaide Brighton, Ltd.		118,950		357,722
AED Oil, Ltd. (a) (b) (c)		93,946		0
Ainsworth Game Technology, Ltd.		51,616		28,904
Alkane Resources, Ltd. (a)		120,355		16,531
ALS, Ltd.		82,785		395,300
Altium, Ltd.		31,832		485,296
AMA Group, Ltd.		111,029		67,701
Amaysim Australia, Ltd. (a)		21,060		14,642
Ansell, Ltd.		36,143		561,040
AP Eagers, Ltd.		9,996		42,243
Appen, Ltd.		19,037		172,605
ARB Corp., Ltd.		28,061		295,488
Ardent Leisure Group, Ltd.		88,453		92,207
ARQ Group, Ltd.		41,278		56,890
Asaleo Care, Ltd.		51,178		32,988
Atlas Arteria, Ltd.		108,901		480,142
AUB Group, Ltd.		29,816		261,028
Aurelia Metals, Ltd. (a)		110,317		52,834
Ausdrill, Ltd.		186,432		155,292
Austal, Ltd.		81,889		112,179
Australian Agricultural Co., Ltd. (a)		192,359		148,565
Australian Finance Group, Ltd.		11,568		10,561
Australian Pharmaceutical Industries, Ltd.		174,311		169,541
Auswide Bank, Ltd.		9,275		34,578
Automotive Holdings Group, Ltd.		101,744		111,785
Aveo Group		113,281		127,657
AVJennings, Ltd.		10,332		3,783
Baby Bunting Group, Ltd.		5,851		8,946
Bank of Queensland, Ltd.		17,806		121,193
Bapcor, Ltd.		48,412		200,821
Beach Energy, Ltd.		606,009		572,213
Beadell Resources, Ltd. (a)		102,327		3,694
Bega Cheese, Ltd.		77,553		269,553
Bellamy’s Australia, Ltd. (a)		19,257		99,135
Bingo Industries, Ltd.		51,085		66,455
Blackmores, Ltd.		4,893		420,421
Blue Sky Alternative Investments, Ltd. (a)		6,725		3,755
Bravura Solutions, Ltd.		40,862		106,623
Breville Group, Ltd.		34,410		258,347
Brickworks, Ltd.		5,923		69,374
Bubs Australia, Ltd. (a)		5,279		1,704
Buru Energy, Ltd. (a)		72,570		10,483
BWX, Ltd.		2,270		2,526
Capitol Health, Ltd.		150,763		28,694
Capral, Ltd.		136,176		11,510
Cardno, Ltd. (a) (b)		69,333		48,892
Carnarvon Petroleum, Ltd. (a)		282,013		64,136
carsales.com, Ltd.		79,391		615,827
Cash Converters International, Ltd. (a)		152,939		25,315
Cedar Woods Properties, Ltd.		27,273		97,419
Centuria Capital Group		14,370		12,914
Citadel Group, Ltd. (The)		4,283		21,944
Cleanaway Waste Management, Ltd.		670,809		787,387
Clinuvel Pharmaceuticals, Ltd.		5,706		73,257
Australia—(Continued)
Clover Corp., Ltd.		34,945		33,719
Codan, Ltd.		17,036		34,804
Collection House, Ltd.		19,217		18,409
Collins Foods, Ltd.		20,592		89,688
Cooper Energy, Ltd. (a)		552,999		173,503
Corporate Travel Management, Ltd.		22,148		334,915
Costa Group Holdings, Ltd.		62,749		327,925
Credit Corp. Group, Ltd.		13,415		177,254
CSG, Ltd. (a)		85,825		9,711
CSR, Ltd.		239,936		474,830
Cudeco, Ltd. (a) (b) (d)		51,210		3,178
Data #3, Ltd.		55,471		58,636
Decmil Group, Ltd. (a)		78,588		38,193
Dicker Data, Ltd.		5,634		11,190
Domain Holdings Australia, Ltd.		96,746		151,949
Domino’s Pizza Enterprises, Ltd.		5,908		169,144
Doray Minerals, Ltd. (a)		44,069		11,397
Downer EDI, Ltd.		156,144		743,407
DuluxGroup, Ltd.		144,897		669,473
DWS, Ltd.		36,847		30,884
Eclipx Group, Ltd.		26,542		45,507
Elders, Ltd.		32,731		162,979
Emeco Holdings, Ltd. (a)		65,024		93,115
EML Payments, Ltd. (a)		21,460		22,517
Energy Resources of Australia, Ltd. (a)		51,910		8,957
Energy World Corp., Ltd. (a)		325,379		31,888
EQT Holdings, Ltd.		3,062		51,683
ERM Power, Ltd.		49,991		54,894
Estia Health, Ltd.		29,371		47,371
Euroz, Ltd.		23,559		18,420
Event Hospitality and Entertainment, Ltd.		38,556		369,572
FAR, Ltd. (a)		653,097		30,687
Finbar Group, Ltd.		6,909		3,687
Fleetwood Corp., Ltd.		35,042		48,834
FlexiGroup, Ltd.		60,577		57,861
G8 Education, Ltd.		158,694		316,301
Galaxy Resources, Ltd. (a)		98,235		150,129
Galilee Energy, Ltd. (a)		43,169		18,899
Genworth Mortgage Insurance Australia, Ltd.		42,575		65,418
Gold Road Resources, Ltd. (a)		132,712		60,755
GrainCorp, Ltd. - Class A		83,590		539,881
Grange Resources, Ltd.		120,000		16,931
Greencross, Ltd.		22,048		84,477
Greenland Minerals Ltd. (a)		349,524		17,173
GUD Holdings, Ltd.		39,734		314,549
GWA Group, Ltd.		92,856		181,806
Hansen Technologies, Ltd.		50,238		122,757
Harvey Norman Holdings, Ltd.		59,103		131,659
Healius, Ltd.		291,166		457,308
Healthscope, Ltd.		115,676		181,692
Hills, Ltd. (a)		80,453		9,342
Horizon Oil, Ltd. (a)		652,736		45,597
HT&E, Ltd.		109,386		121,807
HUB24, Ltd.		12,427		103,971
Huon Aquaculture Group, Ltd.		2,742		9,077
IDM International, Ltd. (a) (b) (c) (d)		1,969		0
IDP Education, Ltd.		9,981		69,383

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Australia—(Continued)
Iluka Resources, Ltd.		67,683	$	363,234
Imdex, Ltd. (a)		100,165		75,485
IMF Bentham, Ltd.		56,545		125,164
Independence Group NL		112,057		301,463
Infigen Energy, Ltd. (a)		343,467		112,488
Infomedia, Ltd.		131,353		109,308
Inghams Group, Ltd.		61,587		179,149
Integral Diagnostics, Ltd.		6,767		13,202
Integrated Research, Ltd.		28,972		35,824
International Ferro Metals, Ltd. (a) (b) (c) (d)		82,765		0
Invocare, Ltd.		39,057		283,471
IOOF Holdings, Ltd.		118,246		431,015
IPH, Ltd.		43,902		167,281
Iress, Ltd.		54,057		423,362
iSelect, Ltd.		46,213		24,737
iSentia Group, Ltd.		28,120		5,545
IVE Group, Ltd.		19,754		29,218
Japara Healthcare, Ltd.		32,040		25,289
JBHi-Fi, Ltd.		46,350		722,750
Jumbo Interactive, Ltd.		12,118		60,905
Jupiter Mines, Ltd.		53,689		9,441
K&S Corp., Ltd.		1,802		1,777
Karoon Energy, Ltd. (a)		75,600		44,774
Kingsgate Consolidated, Ltd. (a)		121,238		13,672
Kogan.com, Ltd.		8,313		19,933
Lifestyle Communities, Ltd.		7,615		28,255
Link Administration Holdings, Ltd.		96,883		461,944
Lovisa Holdings, Ltd.		11,216		49,054
Lynas Corp., Ltd. (a)		58,609		65,086
MACA, Ltd.		56,351		37,006
Macmahon Holdings, Ltd. (a)		380,170		57,376
MaxiTRANS Industries, Ltd.		59,013		22,042
Mayne Pharma Group, Ltd. (a)		452,144		246,780
McMillan Shakespeare, Ltd.		29,453		288,552
McPherson’s, Ltd.		34,460		30,338
Medusa Mining, Ltd. (a)		60,972		17,393
Metals X, Ltd. (a)		84,827		25,390
Metcash, Ltd.		385,184		664,661
Millennium Minerals, Ltd. (a)		63,242		8,060
Mincor Resources NL (a)		105,687		25,681
Mineral Resources, Ltd.		41,091		447,697
MMA Offshore, Ltd. (a)		200,470		21,884
Moelis Australia, Ltd.		4,454		14,341
Monadelphous Group, Ltd.		40,177		389,647
Monash IVF Group, Ltd.		21,931		15,343
Money3 Corp., Ltd.		25,929		30,160
Morning Star Gold NL (a) (b) (c)		33,455		0
Mortgage Choice, Ltd.		48,689		33,798
Mount Gibson Iron, Ltd.		406,465		153,158
Myer Holdings, Ltd. (a)		355,143		103,805
MYOB Group, Ltd.		110,434		260,232
MyState, Ltd.		3,899		12,496
Navigator Global Investments, Ltd.		45,623		134,949
Navitas, Ltd.		85,117		303,338
NetComm Wireless, Ltd. (a)		18,166		9,695
New Hope Corp., Ltd.		32,928		79,082
NEXTDC, Ltd. (a)		68,796		296,536
Australia—(Continued)
nib holdings, Ltd.		171,993		629,896
Nick Scali, Ltd.		16,348		60,795
Nine Entertainment Co. Holdings, Ltd.		529,025		514,180
NRW Holdings, Ltd.		78,732		89,551
Nufarm, Ltd.		112,275		471,729
OceanaGold Corp.		166,811		608,496
OFX Group, Ltd.		99,303		122,397
OM Holdings, Ltd.		11,090		9,607
Onevue Holdings, Ltd. (a)		33,268		13,941
oOh!media, Ltd.		44,310		106,730
Orora, Ltd.		238,165		514,938
OZ Minerals, Ltd.		134,369		832,786
Pacific Current Group, Ltd.		5,535		21,024
Pacific Niugini, Ltd. (a)		61,527		8,660
Pacific Smiles Group, Ltd.		13,431		12,127
Pact Group Holdings, Ltd.		9,541		23,331
Panoramic Resources, Ltd. (a)		167,563		44,160
Paragon Care, Ltd.		45,405		20,415
Peet, Ltd.		88,199		60,320
Pendal Group, Ltd.		39,801		222,234
Perpetual, Ltd.		17,753		406,511
Perseus Mining, Ltd. (a)		231,401		68,988
Platinum Asset Management, Ltd.		57,876		198,157
Pluton Resources, Ltd. (a) (b) (c)		48,332		0
PMP, Ltd. (a)		158,703		20,680
Praemium, Ltd. (a)		98,955		44,678
Premier Investments, Ltd.		44,992		466,139
Prime Media Group, Ltd. (a)		93,371		14,188
Pro Medicus, Ltd.		13,002		98,960
PWR Holdings, Ltd.		5,725		13,346
Qube Holdings, Ltd.		219,677		392,986
Quintis, Ltd. (a) (b) (c) (d)		106,522		0
RCR Tomlinson, Ltd. (b) (c) (d)		113,813		69,743
Reckon, Ltd.		36,898		17,412
Regis Healthcare, Ltd.		29,394		54,784
Regis Resources, Ltd.		180,703		617,057
Reject Shop, Ltd. (The)		12,421		23,952
Resolute Mining, Ltd.		277,334		227,145
Retail Food Group, Ltd. (a)		64,643		13,691
Rhipe, Ltd.		12,338		10,827
Ridley Corp., Ltd.		123,003		111,863
RPMGlobal Holdings, Ltd. (a)		4,190		1,830
Ruralco Holdings, Ltd.		9,291		19,960
Salmat, Ltd.		45,807		18,875
Sandfire Resources NL		40,717		191,561
Saracen Mineral Holdings, Ltd. (a)		349,701		726,325
SeaLink Travel Group, Ltd.		7,812		23,400
Select Harvests, Ltd.		35,131		150,933
Senex Energy, Ltd. (a)		311,194		60,271
Servcorp, Ltd.		21,215		45,424
Service Stream, Ltd.		62,705		77,815
Seven Group Holdings, Ltd.		7,838		78,407
Seven West Media, Ltd. (a)		408,410		158,198
SG Fleet Group, Ltd.		24,267		52,339
Sigma Healthcare, Ltd.		560,969		224,279
Silver Chef, Ltd.		8,928		15,453
Silver Lake Resources, Ltd. (a)		112,092		44,226

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Australia—(Continued)
SmartGroup Corp., Ltd.		22,008	$	137,640
Southern Cross Media Group, Ltd.		229,061		162,136
Spark Infrastructure Group		417,824		650,622
SpeedCast International, Ltd.		60,891		124,978
SRG Global, Ltd. (d)		9,380		3,306
St. Barbara, Ltd.		201,372		667,103
Stanmore Coal, Ltd.		19,719		13,893
Steadfast Group, Ltd.		198,774		383,723
Strike Energy, Ltd. (a)		228,018		12,677
Sundance Energy Australia, Ltd. (a)		204,616		51,631
Sunland Group, Ltd.		40,150		37,898
Super Retail Group, Ltd.		65,652		325,269
Superloop, Ltd. (a)		10,345		11,075
Syrah Resources, Ltd. (a)		53,924		57,274
Tassal Group, Ltd.		80,622		250,981
Technology One, Ltd.		85,252		369,873
Thorn Group, Ltd.		62,916		25,146
Tiger Resources, Ltd. (a) (b) (d)		591,241		0
Troy Resources, Ltd. (a) (b)		106,145		8,298
Villa World, Ltd.		27,402		33,887
Village Roadshow, Ltd. (a)		38,999		74,467
Virgin Australia Holdings, Ltd. (a)		442,369		57,634
Virgin Australia International Holding, Ltd. (a) (b) (c)		968,773		1
Virtus Health, Ltd.		37,091		115,298
Vista Group International, Ltd.		24,156		60,812
Vita Group, Ltd.		18,112		13,464
Vocus Group, Ltd. (a)		98,354		221,662
Webjet, Ltd.		33,524		259,244
Western Areas, Ltd.		118,029		164,711
Westgold Resources, Ltd. (a)		37,679		23,322
WorleyParsons, Ltd.		68,301		549,320
WPP AUNZ, Ltd.		131,382		52,784
				38,078,455
Austria—1.3%
A-TEC Industries AG (b) (c)		1		0
Agrana Beteiligungs AG		5,812		106,954
ams AG (a) (e)		12,258		295,581
Andritz AG		13,228		608,494
Austria Technologie & Systemtechnik AG		14,133		249,999
CA Immobilien Anlagen AG		20,949		661,896
DO & Co. AG		2,199		204,144
EVN AG		12,657		182,189
FACC AG (e)		3,854		58,693
Flughafen Wien AG		267		10,555
IMMOFINANZ AG (a)		19,641		470,361
Kapsch TrafficCom AG		1,870		71,265
Lenzing AG		3,209		292,502
Mayr Melnhof Karton AG		3,211		404,326
Oberbank AG		198		20,373
Oesterreichische Post AG		10,088		346,651
Palfinger AG		5,204		132,537
POLYTEC Holding AG		8,428		80,735
Porr AG		2,048		40,834
Rosenbauer International AG		1,615		61,643
S IMMO AG		23,207		386,979
Austria—(Continued)
S&T AG (a)		16,139		292,719
Schoeller-Bleckmann Oilfield Equipment AG		3,509		230,943
Semperit AG Holding (a) (e)		5,443		62,117
Strabag SE		6,827		200,657
Telekom Austria AG (a)		34,047		259,040
UBM Development AG		655		25,067
UNIQA Insurance Group AG		36,921		331,961
Vienna Insurance Group AG Wiener Versicherung Gruppe		4,893		113,562
Wienerberger AG		39,101		805,042
Zumtobel Group AG (a)		13,016		105,986
				7,113,805
Belgium—1.7%
Ackermans & van Haaren NV		7,373		1,110,061
AGFA-Gevaert NV (a)		67,517		257,953
Atenor		1,089		63,590
Banque Nationale de Belgique		88		242,803
Barco NV		4,866		549,760
Bekaert S.A.		11,685		280,712
Biocartis NV (a) (e)		5,445		62,133
bpost S.A. (e)		18,928		173,098
Cie d’Entreprises CFE		3,200		316,957
Cie Immobiliere de Belgique S.A.		1,276		73,652
D’ieteren S.A.		8,787		330,704
Deceuninck NV		27,313		60,350
Econocom Group S.A.		39,556		131,125
Elia System Operator S.A.		10,586		706,851
Euronav NV (e)		30,049		212,971
EVS Broadcast Equipment S.A.		4,761		126,446
Exmar NV (a)		10,339		70,595
Fagron		12,062		196,684
Galapagos NV (a)		16,401		1,513,838
GIMV NV		1,836		98,658
Ion Beam Applications (a) (e)		6,507		95,272
Jensen-Group NV		738		28,758
Kinepolis Group NV		5,586		311,531
Lotus Bakeries NV		96		236,387
MDxHealth (a) (e)		8,434		17,885
Melexis NV (e)		5,431		315,419
Nyrstar NV (a) (e)		26,926		17,629
Ontex Group NV (e)		15,902		325,310
Orange Belgium S.A.		13,209		260,447
Oxurion NV (a)		12,685		52,602
Picanol		1,096		86,241
Radisson Hospitality AB (a)		2,932		13,545
Recticel S.A.		18,423		134,612
Resilux NV		229		31,644
Roularta Media Group NV		1,629		27,338
Sioen Industries NV		3,002		77,827
Sipef S.A. (e)		3,358		187,612
Telenet Group Holding NV		4,403		204,399
TER Beke S.A.		141		19,511
Tessenderlo Group S.A. (a)		13,457		448,702
Van de Velde NV		1,970		57,699

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Belgium—(Continued)
Viohalco S.A. (a)		45,397	$	138,093
				9,667,404
Canada—8.1%
5N Plus, Inc. (a)		33,732		76,596
Absolute Software Corp.		18,754		106,326
Acadian Timber Corp.		3,800		42,114
Advantage Oil & Gas, Ltd. (a) (e)		91,030		132,024
Aecon Group, Inc.		30,622		395,000
AG Growth International, Inc.		5,820		199,514
AGF Management, Ltd. - Class B		32,280		113,968
AGT Food & Ingredients, Inc. (e)		7,901		96,303
Aimia, Inc. (a)		48,671		131,553
AirBoss of America Corp.		3,761		23,637
AKITA Drilling, Ltd. - Class A		3,414		10,178
Alamos Gold, Inc. - Class A		124,119		446,399
Alaris Royalty Corp.		16,654		207,260
Alcanna, Inc. (a)		12,660		39,041
Alexco Resource Corp. (a)		22,734		21,149
Algoma Central Corp.		4,410		40,960
Alio Gold, Inc. (a)		5,966		5,026
Altius Minerals Corp. (e)		12,660		100,245
Altus Group, Ltd.		14,488		251,195
Americas Silver Corp. (a)		4,400		7,187
Amerigo Resources, Ltd. (a)		35,000		22,817
Andrew Peller, Ltd. - Class A		11,417		114,488
ARC Resources, Ltd.		51,089		303,121
Aritzia, Inc. (a)		11,500		138,148
Asanko Gold, Inc. (a)		23,027		14,674
Athabasca Oil Corp. (a)		144,824		105,022
ATS Automation Tooling Systems, Inc. (a)		36,533		385,079
AutoCanada, Inc.		8,428		70,069
B2Gold Corp. (a)		251,245		734,301
Badger Daylighting, Ltd. (e)		12,862		303,838
Baytex Energy Corp. (a) (e)		166,118		293,250
Bellatrix Exploration, Ltd. (a) (e)		12,053		5,562
Birchcliff Energy, Ltd.		71,640		159,527
Bird Construction, Inc.		18,612		83,299
Black Diamond Group, Ltd. (a)		19,812		30,330
BMTC Group, Inc.		5,387		51,258
BNK Petroleum, Inc. (a)		17,500		4,166
Bonavista Energy Corp.		75,351		66,233
Bonterra Energy Corp. (e)		12,499		59,144
Boralex, Inc. - Class A		18,354		226,400
Brookfield Real Estate Services, Inc.		3,500		37,353
BSM Technologies, Inc. (a)		15,600		9,142
Calfrac Well Services, Ltd. (a) (e)		35,593		63,615
Calian Group, Ltd.		2,846		61,289
Canaccord Genuity Group, Inc.		54,653		230,990
Canacol Energy, Ltd. (a) (e)		37,461		110,857
Canadian Western Bank		32,028		610,906
Canfor Corp. (a)		17,141		207,545
Canfor Pulp Products, Inc.		15,297		181,632
CanWel Building Materials Group, Ltd.		19,304		64,479
Capital Power Corp.		41,208		802,608
Capstone Mining Corp. (a)		117,839		52,653
Canada—(Continued)
Cardinal Energy, Ltd. (e)		32,459		52,783
Cargojet, Inc. (d)		1,200		62,224
Cascades, Inc.		35,836		268,534
Celestica, Inc. (a)		38,585		338,029
Celestica, Inc. (U.S. Listed Shares) (a)		223		1,956
Centerra Gold, Inc. (a)		62,285		267,353
Cervus Equipment Corp.		2,998		27,999
CES Energy Solutions Corp.		68,937		159,062
Chesswood Group, Ltd.		2,000		15,221
Cineplex, Inc.		19,436		362,183
Clairvest Group, Inc.		200		6,592
Clearwater Seafoods, Inc.		10,644		44,831
Cogeco Communications, Inc.		5,772		278,115
Cogeco, Inc.		2,309		98,503
Colliers International Group, Inc.		9,980		550,391
Computer Modelling Group, Ltd.		28,920		129,009
Conifex Timber, Inc. (a) (e)		3,500		4,384
Continental Gold, Inc. (a) (e)		46,900		77,296
Copper Mountain Mining Corp. (a) (e)		63,622		33,554
Corby Spirit and Wine, Ltd.		3,957		53,767
Corridor Resources, Inc. (a)		21,385		12,531
Corus Entertainment, Inc. - B Shares		31,990		111,539
Cott Corp.		44,379		617,964
Cott Corp. (U.S. Listed Shares)		2,000		27,880
Crew Energy, Inc. (a)		69,029		43,484
CRH Medical Corp. (a)		27,305		83,603
Delphi Energy Corp. (a) (e)		95,850		26,680
Denison Mines Corp. (a) (e)		247,548		114,236
Descartes Systems Group, Inc. (The) (a)		20,090		530,210
Detour Gold Corp. (a)		34,636		292,523
DHX Media, Ltd. (a) (e)		41,896		68,742
DIRTT Environmental Solutions (a)		14,110		63,150
Dorel Industries, Inc. - Class B		12,134		156,786
DREAM Unlimited Corp. - Class A (a)		7,822		39,190
Dundee Precious Metals, Inc. (a)		45,872		120,963
E-L Financial Corp., Ltd.		177		95,423
Echelon Financial Holdings, Inc. (a)		900		9,229
ECN Capital Corp.		87,631		221,452
EcoSynthetix, Inc. (a)		800		1,137
Eldorado Gold Corp. (a)		27,658		81,038
Element Fleet Management Corp.		40,030		202,613
Endeavour Silver Corp. (a) (e)		41,698		89,798
Enerflex, Ltd.		29,289		342,835
Enerplus Corp.		53,164		413,567
Enghouse Systems, Ltd.		7,089		344,844
Ensign Energy Services, Inc.		51,526		180,786
Entertainment One, Ltd.		84,242		381,375
Epsilon Energy, Ltd. (a)		10,928		47,948
Equitable Group, Inc.		4,209		182,271
Essential Energy Services Trust (a) (e)		53,526		11,762
Evertz Technologies, Ltd.		10,149		120,358
Exchange Income Corp.		2,651		54,876
Exco Technologies, Ltd.		13,332		88,183
EXFO, Inc. (a)		85		244
Extendicare, Inc.		34,956		162,592
Fiera Capital Corp.		16,619		137,437
Firm Capital Mortgage Investment Corp.		9,574		92,220

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Canada—(Continued)
First Majestic Silver Corp. (a)		42,360	$	248,848
First Mining Gold Corp. (a)		50,000		8,973
First National Financial Corp. (e)		4,907		98,701
FirstService Corp.		10,880		746,665
Fission Uranium Corp. (a) (e)		114,725		45,379
Fortuna Silver Mines, Inc. (a)		60,121		220,191
Freehold Royalties, Ltd.		35,012		212,093
Gamehost, Inc.		4,952		33,806
GDI Integrated Facility Services, Inc. (a)		1,400		18,951
Gear Energy, Ltd. (a)		34,663		14,473
Genesis Land Development Corp.		14,348		33,211
Genworth MI Canada, Inc.		15,602		459,420
Gibson Energy, Inc.		29,744		406,986
Glacier Media, Inc. (a)		9,600		4,219
Gluskin Sheff & Associates, Inc.		12,233		93,459
GMP Capital, Inc.		28,336		39,021
Goeasy, Ltd.		3,895		102,054
GoldMoney, Inc. (a)		5,500		6,929
Gran Tierra Energy, Inc. (a)		112,213		244,942
Granite Oil Corp. (e)		2,519		1,015
Great Canadian Gaming Corp. (a)		19,208		673,518
Great Panther Silver, Ltd. (a)		67,206		47,751
Guardian Capital Group, Ltd. - Class A		1,500		24,238
Guyana Goldfields, Inc. (a)		57,547		67,444
Hanfeng Evergreen, Inc. (a) (b) (c) (d)		12,100		0
Heroux-Devtek, Inc. (a)		14,606		138,335
High Arctic Energy Services, Inc.		3,900		9,056
High Liner Foods, Inc. (e)		8,307		46,610
Home Capital Group, Inc. (a)		22,002		232,075
Horizon North Logistics, Inc. (e)		54,212		71,478
HudBay Minerals, Inc.		103,103		487,874
Hudson’s Bay Co. (e)		35,831		191,333
IAMGOLD Corp. (a)		152,782		560,678
IBI Group, Inc. (a)		5,900		18,843
Imperial Metals Corp. (a) (e)		18,151		20,608
Indigo Books & Music, Inc. (a)		1,986		16,409
Information Services Corp.		800		8,966
Innergex Renewable Energy, Inc.		40,708		373,922
InPlay Oil Corp. (a)		7,800		5,599
Interfor Corp. (a)		31,992		337,917
International Petroleum Corp. (a)		25,920		82,589
International Tower Hill Mines, Ltd. (a)		21,604		11,236
Intertain Group, Ltd. (The) (a)		800		6,317
Intertape Polymer Group, Inc. (e)		20,313		251,755
Invesque, Inc.		9,800		69,874
Jamieson Wellness, Inc.		11,072		172,990
Just Energy Group, Inc. (e)		50,690		167,457
K-Bro Linen, Inc. (e)		2,719		66,601
Kelt Exploration, Ltd. (a)		58,951		200,361
Kinaxis, Inc. (a)		7,097		342,582
Kingsway Financial Services, Inc. (a) (b) (c)		8,765		25,156
Knight Therapeutics, Inc. (a)		40,310		227,061
KP Tissue, Inc.		1,400		8,276
Labrador Iron Ore Royalty Corp.		21,800		387,073
Largo Resources, Ltd. (a) (e)		83,173		172,414
Lassonde Industries, Inc. - Class A		500		72,964
Laurentian Bank of Canada		13,206		368,263
Canada—(Continued)
Leagold Mining Corp. (a) (e)		9,400		11,912
Leon’s Furniture, Ltd.		9,639		106,119
Lightstream Resources, Ltd. (a) (b) (c)		108,373		0
Linamar Corp.		9,144		303,416
Lucara Diamond Corp. (e)		110,136		119,397
Lundin Gold, Inc. (a)		11,400		41,669
Magellan Aerospace Corp.		5,794		63,576
Mainstreet Equity Corp. (a)		2,561		78,057
Major Drilling Group International, Inc. (a)		36,670		123,558
Mandalay Resources Corp. (a)		87,627		4,814
Manitok Energy, Inc. (a) (b) (d)		122		0
Maple Leaf Foods, Inc.		14,680		293,880
Martinrea International, Inc.		32,289		256,855
Maxar Technologies, Ltd. (e)		5,602		66,927
Maxim Power Corp. (a)		2,800		4,451
Mediagrif Interactive Technologies, Inc.		4,176		29,243
Medical Facilities Corp.		12,861		141,686
MEG Energy Corp. (a)		66,854		377,560
Melcor Developments, Ltd.		3,120		28,087
MENE, Inc. (a)		284		125
Morguard Corp.		1,400		180,497
Morneau Shepell, Inc.		18,485		339,045
Mountain Province Diamonds, Inc.		1,600		2,285
MTY Food Group, Inc.		6,320		280,724
Mullen Group, Ltd. (e)		37,792		338,002
Nevsun Resources, Ltd. (a)		96,711		424,333
New Gold, Inc. (a)		118,248		90,947
NFI Group, Inc.		13,236		330,027
Norbord, Inc.		7,425		197,427
North American Construction Group, Ltd.		14,743		131,210
North West Co., Inc. (The)		16,971		390,587
Northland Power, Inc.		30,227		480,461
NuVista Energy, Ltd. (a) (e)		59,117		176,675
Obsidian Energy, Ltd. (a) (e)		163,188		60,962
Osisko Gold Royalties, Ltd. (e)		30,681		269,009
Osisko Mining, Inc. (a)		12,300		27,660
Painted Pony Energy, Ltd. (a) (e)		38,738		42,279
Pan American Silver Corp.		49,527		723,025
Paramount Resources, Ltd. - Class A (a) (e)		19,290		101,452
Parex Resources, Inc. (a)		55,359		662,994
Park Lawn Corp.		1,633		27,583
Parkland Fuel Corp.		25,863		669,498
Pason Systems, Inc.		22,516		301,654
Pengrowth Energy Corp. (a) (e)		183,295		80,557
Peyto Exploration & Development Corp.		19,828		102,829
Photon Control, Inc. (a)		20,200		16,128
PHX Energy Services Corp. (a)		12,350		21,349
Pivot Technology Solutions, Inc.		4,800		3,516
Pizza Pizza Royalty Corp.		6,998		45,878
Points International, Ltd. (a)		5,320		53,075
Polaris Infrastructure, Inc.		2,500		18,862
Pollard Banknote, Ltd.		1,400		21,074
Polymet Mining Corp. (a)		38,355		31,185
Precision Drilling Corp. (a)		103,898		180,368
Premium Brands Holdings Corp.		7,825		429,080
Pretium Resources, Inc. (a)		29,937		253,715
Pulse Seismic, Inc. (a) (e)		15,720		17,157

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Canada—(Continued)
Quarterhill, Inc.		58,061	$	56,564
Questerre Energy Corp. - Class A (a) (e)		83,569		16,528
Recipe Unlimited Corp.		4,150		79,553
Reitmans Canada, Ltd. - Class A		20,566		59,203
Richelieu Hardware, Ltd.		18,490		307,309
Rocky Mountain Dealerships, Inc.		3,738		24,150
Rogers Sugar, Inc. (e)		35,106		139,889
Roxgold, Inc. (a)		42,400		25,157
Russel Metals, Inc.		24,422		381,571
Sabina Gold & Silver Corp. (a) (e)		57,206		51,541
Sandstorm Gold, Ltd. (a)		58,462		270,642
Savaria Corp.		10,600		101,403
Secure Energy Services, Inc.		55,376		284,344
SEMAFO, Inc. (a)		123,983		267,909
Seven Generations Energy, Ltd. - Class A (a)		17,835		145,533
ShawCor, Ltd.		20,891		253,716
Sienna Senior Living, Inc. (e)		14,276		164,594
Sierra Wireless, Inc. (a) (e)		16,910		227,044
Sleep Country Canada Holdings, Inc.		12,404		181,444
Solium Capital, Inc. (a)		3,317		28,646
Sprott Resource Holdings, Inc. (a)		5,636		4,624
Sprott, Inc. (e)		60,427		113,754
SSR Mining, Inc. (a)		37,551		453,847
Stantec, Inc. (e)		23,513		515,143
Stella-Jones, Inc.		10,990		318,865
STEP Energy Services, Ltd. (a)		6,800		9,663
Storm Resources, Ltd. (a)		11,300		14,402
Stornoway Diamond Corp. (a)		70,074		10,009
Strad Energy Services, Ltd. (a)		10,641		9,821
Street Capital Group, Inc. (a)		5,900		2,593
Stuart Olson, Inc.		11,157		40,699
SunOpta, Inc. (a)		26,392		102,073
Superior Plus Corp.		44,558		315,940
Surge Energy, Inc. (e)		85,275		91,821
Tamarack Valley Energy, Ltd. (a)		69,684		120,462
Taseko Mines, Ltd. (a)		108,786		51,795
TeraGo, Inc. (a)		4,100		32,074
Teranga Gold Corp. (a)		24,518		72,376
Tervita Corp. (a) (e)		3,508		16,137
TFI International, Inc.		25,364		655,837
Theratechnologies, Inc. (a) (e)		2,200		13,408
Tidewater Midstream and Infrastructure, Ltd. (e)		11,900		11,332
Timbercreek Financial Corp.		9,049		57,998
TMX Group, Ltd.		7,227		374,426
TORC Oil & Gas, Ltd.		47,624		152,444
Torex Gold Resources, Inc. (a)		18,090		172,128
Torstar Corp. - Class B		21,453		12,414
Total Energy Services, Inc.		17,786		127,285
TransAlta Corp.		91,004		372,628
TransAlta Renewables, Inc.		28,608		217,305
Transcontinental, Inc. - Class A		26,130		369,403
TransGlobe Energy Corp.		36,372		67,671
Trevali Mining Corp. (a) (e)		90,600		27,541
Trican Well Service, Ltd. (a)		101,707		88,655
Tricon Capital Group, Inc.		46,139		327,488
Trisura Group, Ltd. (a)		700		13,383
Uni-Select, Inc.		13,271		188,683
Canada—(Continued)
Valener, Inc.		16,303		230,955
Vecima Networks, Inc.		2,500		14,925
Wajax Corp.		7,885		95,761
Wesdome Gold Mines, Ltd. (a)		51,707		167,786
Western Energy Services Corp. (a)		27,573		9,089
Western Forest Products, Inc. (e)		145,247		201,082
WestJet Airlines, Ltd.		861		11,352
Westshore Terminals Investment Corp.		18,288		275,686
Whitecap Resources, Inc.		95,350		303,818
Winpak, Ltd.		8,852		309,613
Yamana Gold, Inc.		227,016		533,784
Yangarra Resources, Ltd. (a)		24,087		46,226
Yellow Pages, Ltd. (a) (e)		6,975		31,115
ZCL Composites, Inc.		9,681		44,604
Zenith Capital Corp. (a) (b) (c)		12,830		761
				45,921,549
China—0.2%
APT Satellite Holdings, Ltd.		164,250		65,203
Asia Satellite Telecommunications Holdings, Ltd.		58,500		39,250
BeijingWest Industries International, Ltd. (a)		41,200		4,081
BOE Varitronix, Ltd.		137,000		39,446
Bund Center Investment, Ltd.		138,000		58,219
CGN Mining Co., Ltd.		145,000		4,398
China Chuanglian Education Financial Group, Ltd. (a)		336,000		2,978
China Display Optoelectronics Technology Holdings, Ltd.		136,000		8,641
China Everbright Greentech, Ltd.		45,000		32,073
China Gold International Resources Corp., Ltd. (a) (e)		79,013		91,445
China Ludao Technology Co., Ltd. (a)		56,000		9,905
China New Higher Education Group, Ltd.		37,000		16,017
China Sunsine Chemical Holdings, Ltd.		35,000		32,081
Chong Hing Bank, Ltd.		16,000		26,993
CITIC Telecom International Holdings, Ltd.		467,000		163,712
FIH Mobile, Ltd. (a) (e)		799,000		83,158
First Sponsor Group, Ltd.		9,490		8,843
Fountain SET Holdings, Ltd.		422,000		66,109
Goodbaby International Holdings, Ltd.		193,000		60,447
Guangnan Holdings, Ltd.		264,000		29,014
Guotai Junan International Holdings, Ltd.		617,600		98,602
Mega Expo Holdings, Ltd.		5,000		2,268
Microport Scientific Corp.		56,000		54,729
Morris Holdings, Ltd.		56,000		4,207
Nanfang Communication Holdings, Ltd.		48,000		33,960
Neo-Neon Holdings, Ltd. (a)		322,500		26,762
New Sports Group, Ltd. (a)		221,500		13,497
Shenwan Hongyuan HK, Ltd.		172,500		36,376
Sino Grandness Food Industry Group, Ltd. (a)		199,272		17,974
SITC International Holdings Co., Ltd.		223,000		208,945
				1,339,333
Colombia—0.0%
Frontera Energy Corp. (a)		3,075		30,137
Denmark—2.3%
ALK-Abello A/S (a)		1,831		271,030
Alm Brand A/S		28,684		219,410

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Denmark—(Continued)
Ambu A/S - Class B (e)		41,724	$	1,004,893
Bang & Olufsen A/S (a)		10,209		139,187
Bavarian Nordic A/S (a) (e)		10,666		208,976
Brodrene Hartmann A/S		663		25,756
Columbus A/S		20,865		40,653
D/S Norden A/S (a)		6,460		91,430
DFDS A/S		11,185		450,515
FLSmidth & Co. A/S (e)		15,133		679,920
GN Store Nord A/S (e)		43,379		1,621,517
H+H International A/S - Class B (a)		4,578		66,844
Harboes Bryggeri A/S - Class B		1,454		16,734
IC Group A/S		3,209		17,990
ISS A/S		27,399		764,795
Jeudan A/S		410		59,585
Jyske Bank A/S		17,351		627,156
Matas A/S		7,249		64,632
Nilfisk Holding A/S (a)		8,471		300,094
NKT A/S (a)		6,820		92,971
NNIT A/S		2,656		74,763
Parken Sport & Entertainment A/S		2,351		28,699
PER Aarsleff Holding A/S		8,472		258,698
Ringkjoebing Landbobank A/S		9,911		517,847
Rockwool International A/S - B Shares		2,187		571,256
Royal Unibrew A/S		15,546		1,070,405
RTX A/S		3,387		84,178
Scandinavian Tobacco Group A/S		7,203		86,782
Schouw & Co. A/S		5,566		414,406
SimCorp A/S		12,900		884,311
Solar A/S - B Shares		2,435		105,680
Spar Nord Bank A/S		32,428		260,235
Sydbank A/S		26,018		619,534
TK Development A/S (a)		37,491		30,662
Topdanmark A/S		22,026		1,026,222
Tryg A/S		732		18,426
United International Enterprises		850		173,338
Veloxis Pharmaceuticals A/S (a) (e)		115,226		38,648
Vestjysk Bank A/S (a)		3,300		992
Zealand Pharma A/S (a)		7,520		95,699
				13,124,869
Finland—2.8%
Aktia Bank Oyj		9,111		94,032
Alma Media Oyj		22,695		144,166
Amer Sports Oyj (a)		47,651		2,097,090
Apetit Oyj		1,205		12,409
Asiakastieto Group Oyj (a)		1,161		32,726
Aspo Oyj		8,414		76,683
Atria Oyj		2,604		19,663
BasWare Oyj (a) (e)		3,525		159,689
Bittium Oyj (e)		8,034		70,216
Cargotec Oyj - B Shares		12,591		384,550
Caverion Oyj (a)		36,589		212,989
Citycon Oyj		146,997		271,812
Cramo Oyj		9,503		162,091
Digia Oyj		3,254		10,631
Elisa Oyj		12,910		534,612
Finland—(Continued)
F-Secure Oyj		35,820		94,747
Ferratum Oyj		2,093		19,178
Finnair Oyj		24,728		200,507
Fiskars Oyj Abp		17,515		302,084
HKScan Oyj - A Shares		6,704		10,934
Huhtamaki Oyj		34,101		1,059,278
Ilkka-Yhtyma Oyj		2,976		11,942
Kemira Oyj		41,153		465,720
Kesko Oyj - A Shares		1,323		66,054
Kesko Oyj - B Shares		21,481		1,158,130
Konecranes Oyj		16,662		503,025
Lassila & Tikanoja Oyj		12,398		212,516
Metsa Board Oyj		86,501		509,948
Metso Oyj		28,987		764,545
Nokian Renkaat Oyj		38,871		1,197,830
Olvi Oyj - A Shares		6,303		227,608
Oriola-KD Oyj - B Shares		53,692		122,074
Orion Oyj - Class A		8,256		287,043
Orion Oyj - Class B		23,446		814,475
Outokumpu Oyj		102,277		373,122
Outotec Oyj (a)		52,402		183,876
Ponsse Oyj		3,208		90,851
Poyry Oyj		14,295		170,391
Raisio Oyj - V Shares		55,399		148,778
Ramirent Oyj		31,090		194,065
Rapala VMC Oyj		8,902		31,131
Raute Oyj - A Shares		72		1,754
Revenio Group Oyj		3,966		57,114
Sanoma Oyj		31,912		310,507
Stockmann Oyj Abp - B Shares (a)		11,956		26,255
Teleste Oyj		2,149		12,942
Tieto Oyj		21,736		588,093
Tikkurila Oyj		12,873		177,371
Tokmanni Group Corp.		7,656		62,949
Uponor Oyj		19,661		194,775
Vaisala Oyj - A Shares		6,772		127,989
Valmet Oyj		28,977		595,105
YIT Oyj		51,511		300,696
				15,958,761
France—3.9%
ABC Arbitrage		7,886		54,938
Actia Group		4,338		16,816
AirFrance-KLM (a)		48,793		527,545
Akka Technologies S.A.		3,906		196,431
AKWEL		3,301		60,903
Albioma S.A.		13,155		285,304
Altamir Amboise		9,152		132,544
Alten S.A.		8,205		681,217
Altran Technologies S.A. (e)		66,322		532,870
Amplitude Surgical SAS (a)		2,894		9,094
APRIL S.A.		8,341		190,445
Assystem (d)		4,398		135,997
Aubay		2,116		68,102
Axway Software S.A.		2,132		30,365
Baikowski SAS (a)		234		3,700

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
France—(Continued)
Bastide le Confort Medical		1,050	$	31,259
Beneteau S.A.		15,076		196,503
Bigben Interactive		4,507		41,388
Boiron S.A.		2,586		144,739
Bonduelle SCA		6,799		220,942
Bourbon S.A. (a) (e)		1,528		6,005
Burelle S.A.		117		106,729
Casino Guichard Perrachon S.A. (e)		6,523		270,788
Catering International Services		541		5,674
Cegedim S.A. (a)		2,643		59,850
CGG S.A. (a)		61,816		81,108
Chargeurs S.A.		7,605		145,165
Cie des Alpes		3,241		91,574
Cie Plastic Omnium S.A.		12,573		288,218
Coface S.A. (a)		23,469		213,211
Derichebourg S.A.		31,305		142,442
Devoteam S.A.		1,818		171,557
Electricite de Strasbourg S.A.		245		27,444
Elior Group S.A.		25,421		379,094
Elis S.A.		22,830		378,577
Eramet		3,022		208,996
Esso S.A. Francaise		1,341		49,502
Etablissements Maurel et Prom (a) (d)		5,328		19,560
Europcar Groupe S.A.		21,442		192,646
Eutelsat Communications S.A.		43,896		868,080
Exel Industries - A Shares		618		48,115
Fleury Michon S.A.		461		20,384
Fnac Darty S.A. (a)		6,777		441,919
Gaztransport Et Technigaz S.A.		5,461		420,477
GEA		165		16,215
GL Events		4,878		96,104
Groupe Crit		1,062		64,414
Groupe Gorge		2,544		24,384
Groupe Open		1,736		39,283
Guerbet		2,188		131,322
Haulotte Group S.A.		5,337		53,973
HERIGE SADCS		235		6,324
HiPay Group S.A. (a)		1,527		13,947
ID Logistics Group (a)		776		102,239
Imerys S.A.		6,375		305,005
Ingenico Group S.A.		16,077		909,301
Interparfums S.A.		918		35,512
IPSOS		12,134		285,715
Jacquet Metal Service		7,099		125,158
Kaufman & Broad S.A.		6,070		231,774
Korian S.A.		21,040		747,451
Lagardere SCA		36,064		906,757
Lanson-BCC		15		512
Latecoere SACA (a) (e)		26,469		84,453
Laurent-Perrier		1,367		148,762
Le Belier		299		10,367
Lectra		8,150		169,711
Linedata Services		1,090		39,339
LISI		8,732		204,919
LNA Sante S.A.		1,488		74,126
Maisons du Monde S.A.		6,434		123,261
Maisons France Confort S.A.		1,526		55,977
France—(Continued)
Manitou BF S.A.		3,893		99,692
Manutan International		589		42,508
Mersen S.A.		8,483		226,854
METabolic EXplorer S.A. (a)		6,035		11,097
Metropole Television S.A.		8,342		133,913
Mr. Bricolage		601		5,147
Neopost S.A.		12,528		342,096
Nexans S.A. (e)		10,974		303,844
Nexity S.A.		12,502		564,313
Nicox (a) (e)		1,834		10,553
NRJ Group		9,690		82,443
Oeneo S.A.		7,998		79,913
Onxeo S.A. (a)		8,671		8,670
Onxeo S.A. (a)		4,566		4,494
Parrot S.A. (a)		2,647		9,678
Pierre & Vacances S.A. (a)		2,596		47,382
Plastivaloire		1,576		15,941
PSB Industries S.A.		234		8,150
Rallye S.A. (e)		9,791		100,866
Recylex S.A. (a) (e)		3,335		21,317
Rexel S.A.		88,036		938,697
Robertet S.A.		66		39,775
Rothschild & Co.		2,555		90,112
Rubis SCA		25,894		1,384,770
Samse S.A.		107		16,058
Savencia S.A.		2,303		147,166
Seche Environnement S.A.		1,555		47,375
SES-imagotag S.A. (a)		1,019		21,222
Societe BIC S.A.		8,476		863,491
Societe des Bains de Mer et du Cercle des Etrangers a Monaco (a)		16		805
Societe Marseillaise du Tunnel Prado-Carenage S.A.		293		5,867
Societe pour l’Informatique Industrielle		1,546		36,524
Societe Television Francaise 1		21,284		171,732
Soitec (a) (e)		5,935		342,843
Solocal Group (a) (e)		161,345		92,581
Somfy S.A.		2,325		167,836
Sopra Steria Group		5,161		473,784
SPIE S.A.		28,473		375,566
STEF S.A.		1,145		101,033
Sword Group		2,775		92,129
Synergie S.A.		3,366		94,357
Tarkett S.A.		6,546		130,820
Technicolor S.A. (a) (e)		88,305		95,876
Tessi S.A. (a) (e)		678		89,945
TFF Group		620		24,823
Thermador Groupe		2,162		109,958
Total Gabon		324		46,370
Touax S.A. (a)		1,706		9,544
Trigano S.A.		3,132		287,690
Union Financiere de France BQE S.A.		1,257		29,437
Vallourec S.A. (a) (e)		67,733		125,259
Valneva SE (a)		5,612		20,396
Vetoquinol S.A.		1,341		77,922
Vicat S.A.		5,373		255,244
VIEL & Cie S.A.		4,205		20,201
Vilmorin & Cie S.A.		2,414		156,307
Virbac S.A. (a)		500		65,226

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
France—(Continued)
Vranken-Pommery Monopole S.A.		958	$	26,013
				22,398,147
Georgia—0.0%
Bank of Georgia Group plc		8,425		147,416
Germany—6.1%
7C Solarparken AG		7,180		20,902
Aareal Bank AG		26,928		832,262
Adler Modemaerkte AG		2,828		10,305
ADLER Real Estate AG		11,254		168,185
ADO Properties S.A.		6,083		318,052
ADVA Optical Networking SE (a)		13,833		99,658
AIXTRON SE (a)		21,680		208,261
All for One Steeb AG		498		27,484
Allgeier SE		2,942		85,200
Amadeus Fire AG		1,986		185,182
Atoss Software AG		298		26,833
Aurubis AG		14,317		708,961
Basler AG		420		59,735
Bauer AG		4,696		65,479
BayWa AG		5,731		135,099
BayWa AG		305		9,368
Bechtle AG		10,952		851,446
Bertrandt AG		1,677		131,562
bet-at-home.com AG		1,045		54,727
Bijou Brigitte AG		1,603		61,456
Bilfinger SE		10,033		292,463
Borussia Dortmund GmbH & Co. KGaA (Xetra Exchange)		26,420		240,702
CANCOM SE		13,574		445,716
Carl Zeiss Meditec AG		7,610		595,501
CECONOMY AG		18,151		65,313
CENIT AG		3,413		52,032
CENTROTEC Sustainable AG		1,930		25,314
Cewe Stiftung & Co. KGaA		2,303		163,690
Comdirect Bank AG		13,399		157,261
CompuGroup Medical SE		7,545		349,289
Corestate Capital Holding S.A.		2,276		79,043
CropEnergies AG		9,235		47,884
CTS Eventim AG & Co. KGaA		18,055		673,792
Data Modul AG		138		8,801
DEAG Deutsche Entertainment AG (a)		3,066		10,932
Delticom AG		1,562		12,823
Deutsche Beteiligungs AG		3,778		145,354
Deutsche Euroshop AG		11,450		332,733
Deutsche Pfandbriefbank AG		35,103		351,492
Deutz AG		35,346		208,232
DIC Asset AG		16,078		167,071
Diebold Nixdorf, Inc.		575		37,768
DMG Mori AG		8,384		414,084
Dr. Hoenle AG		2,084		103,415
Draegerwerk AG & Co. KGaA		1,062		50,106
Duerr AG		15,350		536,705
Eckert & Ziegler AG		1,547		109,045
Elmos Semiconductor AG		5,394		119,304
ElringKlinger AG		11,206		87,326
Germany—(Continued)
Energiekontor AG		2,559		39,236
Euromicron AG (a)		2,048		6,146
Evotec AG (a)		12,499		248,683
Fielmann AG		7,053		435,841
First Sensor AG		2,173		52,928
FORTEC Elektronik AG		253		5,533
Francotyp-Postalia Holding AG		3,300		11,345
Freenet AG		49,368		957,472
FUCHS Petrolub SE		843		33,916
GEA Group AG		21,769		561,361
Gerresheimer AG		9,821		644,261
Gerry Weber International AG (a)		9,842		25,880
Gesco AG		4,563		113,720
GFT Technologies SE		5,932		45,469
Grand City Properties S.A.		24,894		539,866
GRENKE AG		3,342		283,809
H&R GmbH & Co. KGaA		4,195		29,270
Hamburger Hafen und Logistik AG		8,624		171,093
Hawesko Holding AG		223		10,507
Heidelberger Druckmaschinen AG (a)		100,140		182,199
Hella GmbH & Co. KGaA		7,065		281,515
HolidayCheck Group AG (a)		7,854		23,851
Hornbach Baumarkt AG		2,209		43,100
Hornbach Holding AG & Co. KGaA		1,005		47,438
Hugo Boss AG		19,362		1,194,134
Indus Holding AG		9,327		416,349
Isra Vision AG		7,065		196,580
IVU Traffic Technologies AG		2,608		15,166
Jenoptik AG		15,954		416,435
K&S AG		59,335		1,068,689
Kloeckner & Co. SE		34,891		242,156
Koenig & Bauer AG		4,373		182,873
Krones AG		5,091		393,321
KSB SE & Co. KGaA		82		26,081
KWS Saat SE		745		221,922
LANXESS AG		18,190		837,826
Leifheit AG		2,365		48,052
Leoni AG		12,471		432,218
LPKF Laser & Electronics AG (a)		4,316		27,374
Manz AG (a)		1,272		30,206
Medigene AG (a)		2,446		20,676
METRO AG		3,955		60,810
MLP SE		20,985		106,120
Nemetschek SE		6,355		697,552
Nexus AG		4,977		140,134
Nordex SE (a)		23,261		202,090
Norma Group SE		10,781		533,119
OHB SE		2,315		81,847
OSRAM Licht AG		14,845		644,515
Paragon GmbH & Co. KGaA		357		7,216
Patrizia Immobilien AG		19,307		368,858
Pfeiffer Vacuum Technology AG		2,551		317,510
PNE Wind AG		24,548		68,381
Progress-Werk Oberkirch AG		822		23,142
ProSiebenSat.1 Media SE		37,061		659,160
PSI Software AG		3,465		62,232
QSC AG		26,632		38,600

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Germany—(Continued)
R Stahl AG (a)		1,594	$	39,078
Rational AG		390		221,549
Rheinmetall AG		12,940		1,142,636
Rhoen Klinikum AG		15,358		387,180
RIB Software SE		8,127		110,041
Rocket Internet SE (a)		19,109		441,175
SAF-Holland S.A.		22,056		283,204
Salzgitter AG		12,083		353,982
Schaltbau Holding AG (a)		2,019		46,797
Scout24 AG		24,700		1,136,821
Secunet Security Networks AG		391		39,554
SGL Carbon SE (a)		8,945		62,418
SHW AG		2,013		45,688
Siltronic AG		5,196		429,752
Sixt SE		4,968		393,314
SMA Solar Technology AG		3,992		75,845
SMT Scharf AG (a)		831		11,227
Softing AG		1,971		14,670
Software AG		18,372		664,858
Stabilus S.A.		6,982		438,275
STRATEC SE		1,395		80,672
Stroeer SE & Co. KGaA		8,897		430,394
Suedzucker AG		26,310		340,971
Surteco SE		2,209		56,363
Suss Microtec AG (a)		6,216		62,026
TAG Immobilien AG		39,448		900,489
Takkt AG		11,656		181,484
Technotrans AG		2,427		68,094
Tele Columbus AG (a)		1,323		4,393
TLG Immobilien AG		20,277		563,107
Tom Tailor Holding SE (a)		8,518		21,538
Traffic Systems SE		1,794		29,191
VERBIO Vereinigte BioEnergie AG		6,369		48,586
Vossloh AG		4,712		229,063
Wacker Chemie AG		2,569		232,818
Wacker Neuson SE		10,071		190,299
Washtec AG		4,180		288,956
Wuestenrot & Wuerttembergische AG		2,323		42,507
XING SE		988		270,618
Zeal Network SE		1,934		46,210
				34,944,974
Ghana—0.2%
Tullow Oil plc (a)		457,293		1,040,565
Greenland—0.0%
Gronlandsbanken A/S		17		1,425
Guernsey, Channel Islands—0.0%
Raven Russia, Ltd. (a)		95,022		60,422
Hong Kong—2.9%
Aeon Credit Service Asia Co., Ltd.		14,000		12,424
Agritrade Resources, Ltd.		630,000		108,743
Alco Holdings, Ltd.		136,000		15,805
Allied Group, Ltd.		22,000		124,883
Hong Kong—(Continued)
Allied Properties HK, Ltd.		944,024		203,170
APAC Resources, Ltd.		47,217		6,288
Applied Development Holdings, Ltd. (a)		390,000		24,723
Arts Optical International Holdings, Ltd.		16,000		3,576
Asia Financial Holdings, Ltd.		254,000		136,143
Asia Standard International Group, Ltd.		296,000		51,294
Associated International Hotels, Ltd.		14,000		38,976
Auto Italia Holdings (a)		175,000		1,252
Ban Loong Holdings, Ltd. (a)		438,000		10,012
Bel Global Resources Holdings, Ltd. (a) (b) (c)		520,000		0
Best Food Holding Co., Ltd.		112,000		16,860
Bison Finance Group, Ltd. (a)		74,000		10,846
Bonjour Holdings, Ltd. (a)		615,000		16,074
Bossini International Holdings, Ltd.		302,000		10,579
Bright Smart Securities & Commodities Group, Ltd.		176,000		33,857
Brightoil Petroleum Holdings, Ltd. (a) (b) (d)		591,000		113,211
Brockman Mining, Ltd. (a)		2,516,770		48,532
Burwill Holdings, Ltd. (a)		1,566,000		28,150
Cafe de Coral Holdings, Ltd.		116,000		280,675
Camsing International Holding, Ltd.		124,000		141,200
Cash Financial Services Group, Ltd. (a)		288,000		2,010
Century City International Holdings, Ltd.		616,000		55,921
Chen Hsong Holdings		150,000		48,608
Cheuk Nang Holdings, Ltd.		95,574		52,483
Chevalier International Holdings, Ltd.		75,139		105,677
China Baoli Technologies Holdings, Ltd. (a)		285,000		8,906
China Energy Development Holdings, Ltd. (a)		3,670,000		43,690
China Flavors & Fragrances Co., Ltd.		71,446		24,270
China Goldjoy Group, Ltd.		1,368,000		83,439
China LNG Group, Ltd. (a)		184,000		27,918
China Medical & HealthCare Group, Ltd. (a)		400,000		10,089
China Motor Bus Co., Ltd.		1,200		14,571
China Soft Power Technology Holdings, Ltd. (a)		48,435		265
China Solar Energy Holdings, Ltd. (a) (b) (c)		162,000		698
China Star Entertainment, Ltd. (a)		378,000		41,328
China Strategic Holdings, Ltd. (a)		3,402,500		22,087
China Ting Group Holdings, Ltd. (a)		318,550		14,659
China Tonghai International Financial, Ltd. (a)		180,000		15,136
Chinese Estates Holdings, Ltd.		68,000		73,504
Chinney Investment, Ltd.		8,000		2,605
Chow Sang Sang Holdings International, Ltd.		119,000		175,653
Chuang’s China Investments, Ltd.		511,500		31,624
Chuang’s Consortium International, Ltd.		382,357		75,467
CK Life Sciences International Holdings, Inc.		1,594,000		74,040
CNT Group, Ltd.		246,000		8,482
Common Splendor International Health Industry Group, Ltd. (a)		518,000		42,365
Continental Holdings, Ltd.		220,000		2,781
Convoy Global Holdings, Ltd. (a) (b) (c) (d)		1,314,000		5,252
Cosmopolitan International Holdings, Ltd. (a)		194,000		37,640
Cowell e Holdings, Inc.		120,000		13,982
CP Lotus Corp. (a)		1,750,000		15,644
Crocodile Garments		216,000		18,728
Cross-Harbour Holdings, Ltd. (The)		127,063		188,842
CSI Properties, Ltd.		2,574,023		102,047
CST Group, Ltd. (a)		8,984,000		26,342
Dah Sing Banking Group, Ltd.		172,671		304,915
Dah Sing Financial Holdings, Ltd.		66,260		326,588

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Hong Kong—(Continued)
Dan Form Holdings Co., Ltd.		88,000	$	38,599
Dickson Concepts International, Ltd.		131,000		63,897
Digital Domain Holdings, Ltd. (a)		2,520,000		33,179
Dingyi Group Investment, Ltd. (a)		185,000		13,679
DMX Technologies Group, Ltd. (a) (b) (c)		186,000		0
Dynamic Holdings, Ltd.		20,000		19,219
Eagle Nice International Holdings, Ltd.		120,000		42,796
EcoGreen International Group, Ltd.		118,800		23,857
eForce Holdings, Ltd. (a)		128,000		1,755
Elegance Optical International Holdings, Ltd. (a)		96,000		4,653
Emperor Capital Group, Ltd.		726,000		32,821
Emperor Entertainment Hotel, Ltd.		235,000		44,304
Emperor International Holdings, Ltd.		529,250		124,788
Emperor Watch & Jewellery, Ltd.		1,520,000		44,590
Enerchina Holdings, Ltd.		1,068,000		66,934
ENM Holdings, Ltd. (a)		556,000		49,997
Esprit Holdings, Ltd. (a)		833,950		165,567
Fairwood Holdings, Ltd.		26,500		88,711
Far East Consortium International, Ltd.		535,269		235,987
Far East Holdings International, Ltd. (a)		150,000		7,455
First Pacific Co., Ltd.		288,000		111,142
Freeman FinTech Corp., Ltd. (a)		180,000		8,440
Future Bright Holdings, Ltd.		156,000		16,228
Future World Financial Holdings, Ltd. (a)		12,575		83
G-Resources Group, Ltd. (a)		10,474,800		65,112
Get Nice Holdings, Ltd.		2,574,000		82,192
Giordano International, Ltd.		482,000		227,889
Global Brands Group Holding, Ltd. (a) (e)		1,260,000		56,804
Glorious Sun Enterprises, Ltd.		393,000		43,615
Gold Peak Industries Holdings, Ltd.		277,714		26,954
Gold-Finance Holdings, Ltd. (a) (b)		214,000		11,779
Golden Resources Development International, Ltd.		370,000		23,664
Good Resources Holdings, Ltd. (a)		420,000		10,460
GR Properties, Ltd. (a)		150,000		16,642
Great Eagle Holdings, Ltd.		39,571		169,055
Greentech Technology International, Ltd. (a)		360,000		3,589
Guoan International, Ltd. (a)		674,000		14,990
Haitong International Securities Group, Ltd.		513,562		161,730
Hang Lung Group, Ltd.		36,000		91,462
Hanison Construction Holdings, Ltd.		148,009		26,401
Hao Tian Development Group, Ltd. (a)		1,001,000		26,456
Harbour Centre Development, Ltd.		88,000		159,356
HKBN, Ltd.		203,500		308,063
HKR International, Ltd.		366,080		171,898
Hon Kwok Land Investment Co., Ltd.		140,000		64,779
Hong Kong Ferry Holdings Co., Ltd.		22,000		22,637
Hong Kong Finance Investment Holding Group, Ltd. (c)		262,000		32,121
Hong Kong International Construction Investment Management Group Co., Ltd.		98,000		30,194
Hong Kong Television Network, Ltd. (a)		165,000		58,868
Hongkong & Shanghai Hotels (The)		109,500		154,927
Hongkong Chinese, Ltd.		866,000		99,360
Hopewell Holdings, Ltd. (b)		81,500		358,317
Hsin Chong Group Holdings, Ltd. (a) (b) (d)		918,000		7,691
Huarong Investment Stock Corp., Ltd. (a)		175,000		8,282
Hung Hing Printing Group, Ltd.		252,000		36,049
Hutchison Telecommunications Hong Kong Holdings, Ltd.		526,000		195,772
Hong Kong—(Continued)
Imagi International Holdings, Ltd. (a)		90,112		18,331
International Housewares Retail Co., Ltd.		57,000		13,366
IPE Group, Ltd. (d)		285,000		36,760
IRC, Ltd. (a)		760,000		4,541
IT, Ltd.		220,000		115,484
ITC Properties Group, Ltd.		172,615		47,099
Jacobson Pharma Corp., Ltd.		44,000		9,639
Johnson Electric Holdings, Ltd.		106,875		217,108
Kader Holdings Co., Ltd.		224,000		23,743
Kam Hing International Holdings, Ltd.		196,000		15,268
Karrie International Holdings, Ltd.		140,000		18,787
Keck Seng Investments		72,000		45,297
Kerry Logistics Network, Ltd.		107,000		158,352
Kin Yat Holdings, Ltd.		46,000		7,565
Kingmaker Footwear Holdings, Ltd.		102,000		21,440
Kingston Financial Group, Ltd.		162,000		38,326
Kowloon Development Co., Ltd.		159,000		166,997
Kwan On Holdings, Ltd. (a)		50,000		3,173
Lai Sun Development Co., Ltd.		109,413		177,742
Lai Sun Garment International, Ltd.		99,760		141,826
Lam Soon Hong Kong, Ltd.		15,000		26,818
Landing International Development, Ltd. (a)		200,400		62,819
Landsea Green Group Co., Ltd. (a)		268,000		32,327
Langham Hospitality Investments and Langham Hospitality Investments, Ltd.		60,500		22,366
Li & Fung, Ltd.		906,000		142,636
Lifestyle International Holdings, Ltd.		181,500		273,688
Lippo China Resources, Ltd.		2,106,000		42,620
Lippo, Ltd.		122,000		40,820
Liu Chong Hing Investment, Ltd.		86,000		133,313
LT Commercial Real Estate, Ltd. (a)		18,000		14,096
Luk Fook Holdings International, Ltd.		135,000		385,436
Luks Group Vietnam Holdings Co., Ltd.		68,000		16,960
Lung Kee Bermuda Holdings		90,000		39,470
Magnificent Hotel Investment, Ltd.		1,310,000		28,942
Man Wah Holdings, Ltd.		382,400		153,186
Mandarin Oriental International, Ltd.		40,000		81,300
Mason Group Holdings, Ltd. (a)		5,445,000		88,669
Matrix Holdings, Ltd. (d)		36,000		11,999
Meilleure Health International Industry Group, Ltd. (a)		288,000		13,924
Melco International Development, Ltd.		121,000		243,946
Midland Holdings, Ltd.		246,000		46,906
Ming Fai International Holdings, Ltd.		145,000		18,119
Miramar Hotel & Investment		19,000		36,929
Mongolian Mining Corp. (a)		661,000		13,310
Nameson Holdings, Ltd.		130,000		10,587
National Electronic Holdings, Ltd.		182,600		25,850
New Century Group Hong Kong, Ltd. (a)		912,000		14,338
New Times Energy Corp., Ltd. (a)		459,450		6,347
Newocean Energy Holdings, Ltd. (a)		398,000		128,804
Noble Century Investment Holdings, Ltd. (a)		384,000		34,416
OP Financial, Ltd.		240,000		89,732
Orange Sky Golden Harvest Entertainment Holdings, Ltd.		375,882		14,223
Oriental Watch Holdings		215,600		55,935
Pacific Andes International Holdings, Ltd. (a) (b) (d)		1,819,984		6,368
Pacific Basin Shipping, Ltd.		1,138,000		217,003
Pacific Textiles Holdings, Ltd.		240,000		213,121

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Hong Kong—(Continued)
Paliburg Holdings, Ltd.		208,000	$	81,132
Paradise Entertainment, Ltd. (a)		168,000		19,095
PC Partner Group, Ltd.		54,000		12,027
Perfect Shape Medical, Ltd.		108,000		29,134
Pico Far East Holdings, Ltd.		318,000		114,691
Playmates Holdings, Ltd.		460,000		59,929
Playmates Toys, Ltd.		236,000		22,311
Polytec Asset Holdings, Ltd.		580,900		50,247
Public Financial Holdings, Ltd.		166,000		68,195
PYI Corp., Ltd. (a)		2,140,366		31,098
Rare Earth Magnesium Technology Group Holdings, Ltd. (a)		500,000		19,842
Realord Group Holdings, Ltd. (a)		116,000		74,513
Regal Hotels International Holdings, Ltd.		126,000		84,051
Regina Miracle International Holdings, Ltd.		25,000		19,775
Sa Sa International Holdings, Ltd.		271,844		101,956
Samson Holding, Ltd.		146,000		10,059
SAS Dragon Holdings, Ltd.		140,000		42,309
SEA Holdings, Ltd.		103,896		116,581
Shun Ho Property Investments, Ltd.		21,615		7,205
Shun Tak Holdings, Ltd.		659,500		206,307
Silver Base Group Holdings, Ltd. (a)		474,000		27,818
Sincere Watch Hong Kong, Ltd. (a)		250,000		2,429
Sing Tao News Corp., Ltd.		276,000		31,279
Singamas Container Holdings, Ltd.		724,000		96,892
SIS International Holdings		16,000		8,275
Sitoy Group Holdings, Ltd.		111,000		25,638
SmarTone Telecommunications Holdings, Ltd.		142,388		157,869
SOCAM Development, Ltd. (a)		41,987		10,176
Solartech International Holdings, Ltd. (a)		660,000		6,723
Solomon Systech International, Ltd. (a)		920,000		23,424
Soundwill Holdings, Ltd.		41,500		56,948
South China Holdings Co., Ltd. (a)		1,240,000		30,404
Stella International Holdings, Ltd.		161,500		191,936
Success Universe Group, Ltd. (a)		240,000		7,540
Summit Ascent Holdings, Ltd. (a)		126,000		15,937
Sun Hing Vision Group Holdings, Ltd.		42,000		14,053
Sun Hung Kai & Co., Ltd.		270,440		127,414
SUNeVision Holdings, Ltd.		24,000		14,238
Synergy Group Holdings International, Ltd. (a)		112,000		16,833
TAI Cheung Holdings, Ltd.		206,000		201,125
Tai United Holdings, Ltd. (e)		200,000		7,232
Talent Property Group, Ltd. (a)		420,000		3,218
Tan Chong International, Ltd.		63,000		18,907
Tao Heung Holdings, Ltd.		204,000		34,076
Television Broadcasts, Ltd.		123,500		232,901
Texwinca Holdings, Ltd.		300,000		97,881
TK Group Holdings, Ltd.		62,000		31,991
Tom Group, Ltd. (a)		118,000		28,731
Town Health International Medical Group, Ltd. (a) (b) (c) (d)		230,000		20,267
Tradelink Electronic Commerce, Ltd.		256,000		37,872
Transport International Holdings, Ltd.		99,764		274,831
Trinity, Ltd. (a)		466,000		20,096
TSC Group Holdings, Ltd. (a)		216,000		13,132
Tsui Wah Holdings, Ltd.		136,000		12,630
Union Medical Healthcare, Ltd.		32,000		20,476
United Laboratories International Holdings, Ltd. (The)		241,000		128,256
Universal Technologies Holdings, Ltd. (a)		120,000		3,984
Hong Kong—(Continued)
Up Energy Development Group, Ltd. (a) (b) (c) (d)		92,000		284
Upbest Group, Ltd.		16,000		2,086
Value Convergence Holdings, Ltd. (a)		204,000		12,980
Value Partners Group, Ltd.		206,000		141,514
Valuetronics Holdings, Ltd.		89,790		43,154
Vedan International Holdings, Ltd.		296,000		26,461
Victory City International Holdings, Ltd.		839,449		10,996
Vitasoy International Holdings, Ltd.		178,000		675,264
VPower Group International Holdings, Ltd.		78,000		32,269
VSTECS Holdings, Ltd.		307,200		148,161
VTech Holdings, Ltd.		30,800		254,606
Wai Kee Holdings, Ltd.		54,000		27,160
Wan Kei Group Holdings, Ltd. (a)		75,000		7,244
Wang On Group, Ltd.		1,200,000		14,525
We Solutions, Ltd. (a) (b)		348,000		22,056
Win Hanverky Holdings, Ltd.		332,000		32,629
Winfull Group Holdings, Ltd.		528,000		7,270
Wing On Co. International, Ltd.		46,000		148,487
Wing Tai Properties, Ltd.		232,000		159,561
Wonderful Sky Financial Group Holdings, Ltd. (a)		44,000		5,607
Yat Sing Holdings, Ltd. (a)		410,000		11,472
Yeebo International Holdings, Ltd.		158,000		20,929
YGM Trading, Ltd.		46,000		41,154
YT Realty Group, Ltd.		43,002		13,729
YTO Express Holdings, Ltd.		18,000		7,701
Yugang International, Ltd.		1,466,000		29,301
Yunfeng Financial Group, Ltd. (a)		82,000		48,646
				16,778,620
Ireland—0.4%
C&C Group plc		95,793		299,066
Datalex plc		4,783		13,045
FBD Holdings plc		10,350		97,691
Glanbia plc		33,226		622,596
Greencore Group plc (e)		314,156		712,672
Hostelworld Group plc		2,650		6,782
IFG Group plc (a)		44,002		72,701
Independent News & Media plc (a)		35,056		2,395
Irish Continental Group plc		22,664		109,652
Kingspan Group plc		3,636		155,732
Permanent TSB Group Holdings plc (a)		6,751		11,703
Smurfit Kappa Group plc		6,811		180,875
Tarsus Group plc		6,437		22,159
UDG Healthcare plc		22,358		169,570
				2,476,639
Isle of Man—0.0%
Hansard Global plc		2,566		1,505
Strix Group plc		20,405		36,626
				38,131
Israel—1.1%
Adgar Investment and Development, Ltd.		7,358		10,246
ADO Group, Ltd. (a)		3,904		74,175
Afcon Holdings, Ltd.		699		32,759

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Israel—(Continued)
Africa Israel Properties, Ltd. (a)		4,653	$	104,454
Africa Israel Residences, Ltd.		880		12,597
Airport City, Ltd. (a)		30,492		374,660
Allot Communications, Ltd. (a)		10,216		61,398
Alony Hetz Properties & Investments, Ltd.		8,335		77,826
Alrov Properties and Lodgings, Ltd.		3,141		95,188
Amot Investments, Ltd.		25,066		121,659
Arad, Ltd.		1,152		12,188
Arko Holdings, Ltd. (a)		99,131		46,755
Ashtrom Group, Ltd.		3,487		15,936
Ashtrom Properties, Ltd.		8,909		36,771
AudioCodes, Ltd.		6,872		68,229
Avgol Industries 1953, Ltd.		18,498		18,719
Azorim-Investment Development & Construction Co., Ltd. (a)		23,712		20,774
Bayside Land Corp.		205		87,072
Bet Shemesh Engines Holdings, Ltd.		1,262		29,000
Big Shopping Centers, Ltd.		1,031		57,848
BioLine RX, Ltd. (a)		16,296		7,233
Blue Square Real Estate, Ltd.		1,222		38,447
Brainsway, Ltd. (a)		2,193		12,608
Camtek, Ltd.		3,606		24,219
Cellcom Israel, Ltd. (a)		13,058		77,308
Ceragon Networks, Ltd. (a)		14,799		55,940
Clal Biotechnology Industries, Ltd. (a)		17,579		12,811
Clal Insurance Enterprises Holdings, Ltd. (a)		7,114		100,422
Cohen Development & Industrial Buildings, Ltd.		305		7,064
Compugen, Ltd. (a)		14,846		33,726
Danel Adir Yeoshua, Ltd.		1,023		49,802
Delek Automotive Systems, Ltd.		10,535		41,498
Delta-Galil Industries, Ltd.		4,030		99,760
Dexia Israel Bank, Ltd.		150		27,223
Direct Insurance Financial Investments, Ltd.		4,805		54,070
Dor Alon Energy in Israel, Ltd.		766		10,615
El Al Israel Airlines (a)		77,291		24,504
Electra Consumer Products 1970, Ltd.		1,236		13,974
Electra Real Estate, Ltd. (a)		4,280		12,424
Electra, Ltd.		652		156,753
Elron Electronic Industries, Ltd. (a)		7,585		16,880
Energix-Renewable Energies, Ltd. (a)		36,656		46,808
Enlight Renewable Energy, Ltd. (a)		95,911		45,243
Evogene, Ltd. (a)		5,090		10,588
First International Bank of Israel, Ltd.		8,385		175,703
FMS Enterprises Migun, Ltd.		910		24,098
Formula Systems 1985, Ltd.		2,591		96,527
Fox Wizel, Ltd.		2,272		51,607
Gilat Satellite Networks, Ltd. (a)		7,707		71,435
Hadera Paper, Ltd.		1,104		77,705
Hamlet Israel-Canada, Ltd.		1,610		28,465
Harel Insurance Investments & Financial Services, Ltd.		43,597		285,601
Hilan, Ltd.		3,869		90,906
IDI Insurance Co., Ltd.		1,637		84,012
Industrial Buildings Corp., Ltd. (a)		39,465		55,000
Inrom Construction Industries, Ltd.		12,422		36,174
Israel Canada T.R., Ltd.		12,271		8,281
Israel Land Development Co., Ltd. (The) (a)		3,950		27,223
Isras Investment Co., Ltd.		310		33,057
Issta Lines, Ltd.		550		7,833
Israel—(Continued)
Jerusalem Oil Exploration (a)		4,199		237,128
Kamada, Ltd. (a)		11,729		58,479
Kerur Holdings, Ltd. (a)		1,544		37,922
Klil Industries, Ltd.		175		10,890
Maabarot Products, Ltd.		3,435		38,935
Magic Software Enterprises, Ltd.		9,462		72,312
Matrix IT, Ltd.		10,787		119,674
Maytronics, Ltd.		12,073		69,064
Mediterranean Towers, Ltd.		731		1,239
Mega Or Holdings, Ltd.		4,941		51,761
Meitav Dash Investments, Ltd.		5,193		13,901
Melisron, Ltd.		4,351		181,604
Menora Mivtachim Holdings, Ltd.		11,310		120,451
Migdal Insurance & Financial Holding, Ltd.		55,471		47,106
Mivtach Shamir Holdings, Ltd.		1,401		21,261
Naphtha Israel Petroleum Corp., Ltd. (a)		14,775		94,429
Nawi Brothers, Ltd.		4,888		24,779
Neto ME Holdings, Ltd. (a)		788		65,179
Nova Measuring Instruments, Ltd. (a) (d)		8,789		199,012
NR Spuntech Industries, Ltd.		3,848		11,119
Oil Refineries, Ltd.		418,554		199,771
One Software Technologies, Ltd.		555		18,545
OPC Energy, Ltd.		3,627		18,534
Partner Communications Co., Ltd. (a)		24,190		118,499
Paz Oil Co., Ltd.		1,481		223,524
Perion Network, Ltd. (a)		1,082		2,737
Phoenix Holdings, Ltd. (The)		20,176		102,230
Plasson Industries, Ltd.		1,729		75,661
Rami Levi Chain Stores Hashikma Marketing, Ltd.		1,803		92,639
Redhill Biopharma, Ltd. (a)		52,754		29,017
Scope Metals Group, Ltd.		1,419		34,850
Shapir Engineering & Industry, Ltd.		15,962		49,220
Shikun & Binui, Ltd. (a)		73,332		124,661
Shufersal, Ltd.		28,920		189,445
Summit Real Estate Holdings, Ltd.		4,127		34,030
Suny Cellular Communication, Ltd. (a)		16,495		7,721
Tadiran Holdings, Ltd.		568		12,123
Union Bank of Israel (a)		7,545		30,258
YH Dimri Construction & Development, Ltd.		663		8,898
				6,340,409
Italy—4.0%
A/S Roma S.p.A. (a)		31,585		17,800
A2A S.p.A.		481,411		865,964
ACEA S.p.A.		23,394		322,134
Aeffe S.p.A. (a)		11,359		30,534
Amplifon S.p.A.		30,504		493,982
Anima Holding S.p.A.		58,335		215,385
Ansaldo STS S.p.A. (a)		17,665		256,939
Aquafil S.p.A.		3,537		36,401
Arnoldo Mondadori Editore S.p.A. (a)		63,913		125,099
Ascopiave S.p.A.		28,294		100,871
Astaldi S.p.A. (a) (e)		20,559		12,208
Autogrill S.p.A.		41,121		346,320
Avio S.p.A.		2,974		37,999
Azimut Holding S.p.A. (e)		39,680		434,799

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Italy—(Continued)
B&C Speakers S.p.A.		1,431	$	17,383
Banca Carige S.p.A. (a)		156,432		269
Banca Farmafactoring S.p.A.		23,945		124,377
Banca Finnat Euramerica S.p.A.		50,851		18,532
Banca Generali S.p.A.		18,858		390,914
Banca IFIS S.p.A.		7,714		135,998
Banca Mediolanum S.p.A.		51,915		302,930
Banca Popolare dell’Emilia Romagna SC (e)		202,667		781,569
Banca Popolare di Sondrio Scarl		173,614		522,783
Banca Profilo S.p.A.		117,883		24,025
Banca Sistema S.p.A.		9,271		15,255
Banco BPM S.p.A. (a) (e)		390,373		880,924
Banco di Desio e della Brianza S.p.A.		20,306		40,195
BasicNet S.p.A.		7,658		38,878
BE		29,207		29,460
Biesse S.p.A.		6,021		118,498
Brembo S.p.A.		45,165		459,238
Brunello Cucinelli S.p.A.		8,151		280,138
Buzzi Unicem S.p.A.		27,815		479,035
Cairo Communication S.p.A.		24,474		96,072
Cementir Holding S.p.A.		21,979		129,473
Cerved Group S.p.A.		48,374		396,674
CIR-Compagnie Industriali Riunite S.p.A.		157,057		166,910
Credito Emiliano S.p.A.		35,381		204,001
Credito Valtellinese S.p.A. (a)		2,927,424		246,667
d’Amico International Shipping S.A. (a)		60,320		8,500
Danieli & C Officine Meccaniche S.p.A.		4,846		84,828
Datalogic S.p.A.		8,028		188,017
De’Longhi S.p.A.		16,896		427,902
DeA Capital S.p.A.		18,071		25,876
DiaSorin S.p.A.		6,863		556,068
Digital Bros S.p.A.		1,166		5,623
Emak S.p.A.		16,360		23,430
Enav S.p.A.		45,852		222,879
ERG S.p.A.		21,603		407,543
Esprinet S.p.A.		14,507		58,744
Eurotech S.p.A. (a)		13,076		48,433
Falck Renewables S.p.A.		34,815		93,362
Fila S.p.A. (e)		4,557		70,482
Fincantieri S.p.A. (a)		93,136		98,121
FinecoBank Banca Fineco S.p.A.		46,546		468,396
FNM S.p.A.		55,327		31,448
Geox S.p.A. (e)		34,378		46,163
Gruppo Editoriale L’Espresso S.p.A. (a) (e)		52,528		20,849
Gruppo MutuiOnline S.p.A.		6,461		117,228
Hera S.p.A.		231,619		705,483
IMMSI S.p.A. (a)		100,436		46,547
Industria Macchine Automatiche S.p.A.		5,461		341,485
Infrastrutture Wireless Italiane S.p.A.		21,062		143,982
Intek Group S.p.A. (a)		80,757		28,696
Interpump Group S.p.A.		22,700		674,945
Iren S.p.A.		231,134		554,598
Italgas S.p.A.		119,302		681,945
Italmobiliare S.p.A.		3,185		66,954
IVS Group S.A.		1,749		22,164
Juventus Football Club S.p.A. (a) (e)		147,435		178,809
La Doria S.p.A.		3,877		35,154
Italy—(Continued)
Leonardo S.p.A.		39,767		350,035
Maire Tecnimont S.p.A.		35,567		131,402
MARR S.p.A.		13,428		316,997
Massimo Zanetti Beverage Group S.p.A.		1,925		12,673
Mediaset S.p.A. (a) (e)		192,042		606,016
Nice S.p.A.		9,890		39,555
Openjobmetis S.p.A. agenzia per il lavoro (a)		1,209		11,076
OVS S.p.A. (a) (e)		23,352		29,386
Parmalat S.p.A.		13,351		43,599
Piaggio & C S.p.A.		71,430		149,617
Prima Industrie S.p.A.		1,853		36,532
Prysmian S.p.A.		4,104		79,576
RAI Way S.p.A.		12,094		60,024
Reno de Medici S.p.A.		46,743		33,103
Reply S.p.A.		6,572		332,483
Retelit S.p.A.		36,769		57,417
Rizzoli Corriere Della Sera Mediagroup S.p.A. (a)		31,972		42,223
Sabaf S.p.A.		3,059		52,121
SAES Getters S.p.A.		1,416		29,456
Safilo Group S.p.A. (a)		12,212		9,797
Saipem S.p.A. (a)		186,651		695,991
Salini Impregilo S.p.A. (e)		70,140		113,831
Salvatore Ferragamo S.p.A.		16,352		331,879
Saras S.p.A.		134,526		260,168
Servizi Italia S.p.A.		1,701		6,117
Sesa S.p.A.		1,672		44,458
Societa Cattolica di Assicurazioni SC		61,974		503,614
Societa Iniziative Autostradali e Servizi S.p.A.		25,981		358,307
Sogefi S.p.A. (a)		24,822		40,719
SOL S.p.A.		11,001		137,070
Tamburi Investment Partners S.p.A.		25,760		169,176
Technogym S.p.A.		15,679		167,835
Tiscali S.p.A. (a) (e)		802,477		12,936
Tod’s S.p.A.		3,954		186,766
Trevi Finanziaria Industriale S.p.A. (a)		31,414		10,836
TXTe-solutions S.p.A.		980		9,197
Uni Land S.p.A. (a) (b) (c) (d)		4,937		0
Unieuro S.p.A. (a)		902		9,972
Unione di Banche Italiane S.p.A.		325,151		941,308
Unipol Gruppo Finanziario S.p.A.		126,457		509,950
UnipolSai Assicurazioni S.p.A.		127,672		288,691
Zignago Vetro S.p.A.		11,476		111,672
				23,014,868
Japan—24.3%
77 Bank, Ltd. (The)		12,800		220,643
A&A Material Corp.		1,200		9,726
A&D Co., Ltd.		3,000		17,665
A/S One Corp.		2,300		158,378
Abist Co., Ltd.		600		16,762
Achilles Corp.		6,500		109,733
Ad-sol Nissin Corp.		900		13,657
Adastria Co., Ltd.		9,240		156,799
ADEKA Corp.		34,600		500,052
Adtec Plasma Technology Co., Ltd.		600		4,321
Advan Co., Ltd.		6,700		55,698

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Advance Create Co., Ltd.		800	$	12,470
Advanex, Inc.		900		9,907
Advantage Risk Management Co., Ltd.		1,300		10,437
Adventure, Inc.		600		35,966
Aeon Delight Co., Ltd.		4,300		142,940
Aeon Fantasy Co., Ltd.		2,400		58,488
Aeon Hokkaido Corp.		2,600		18,502
Aeria, Inc.		2,200		9,411
Agro-Kanesho Co., Ltd.		1,600		32,537
Ahresty Corp.		9,200		52,416
Ai Holdings Corp. (e)		12,200		214,042
Aichi Bank, Ltd. (The)		2,600		88,960
Aichi Corp.		10,800		57,240
Aichi Steel Corp.		4,300		135,286
Aichi Tokei Denki Co., Ltd.		1,900		66,499
Aida Engineering, Ltd.		20,700		134,476
Aiful Corp. (a)		68,800		163,853
Aiphone Co., Ltd.		4,600		70,564
Airport Facilities Co., Ltd.		7,500		35,090
Aisan Industry Co., Ltd.		10,400		70,943
AIT Corp.		900		7,514
Aizawa Securities Co., Ltd.		13,800		83,982
Akatsuki, Inc.		500		22,836
Akebono Brake Industry Co., Ltd. (a) (e)		32,600		54,704
Akita Bank, Ltd. (The)		6,200		122,921
Albis Co., Ltd.		800		17,623
Alconix Corp.		6,400		62,487
Alinco, Inc.		5,800		50,304
Allied Telesis Holdings KK (a)		13,900		10,865
Alpen Co., Ltd. (e)		7,000		107,163
Alpha Corp.		2,200		23,215
Alpha Systems, Inc.		3,140		71,961
Alpine Electronics, Inc. (a) (d) (e)		16,600		219,879
Alps Logistics Co., Ltd.		6,000		45,959
Altech Corp.		5,200		78,387
Amano Corp.		19,600		376,155
Amiyaki Tei Co., Ltd.		1,100		36,883
Amuse, Inc.		3,600		77,155
Anabuki Kosan, Inc.		400		10,021
Anest Iwata Corp.		10,400		93,805
Anicom Holdings, Inc.		3,400		112,601
AOI Electronics Co., Ltd.		1,100		24,941
AOI TYO Holdings, Inc.		6,428		45,928
AOKI Holdings, Inc.		15,900		188,185
Aomori Bank, Ltd. (The)		6,900		174,248
Aoyama Trading Co., Ltd.		14,500		346,223
Aoyama Zaisan Networks Co., Ltd.		1,400		15,968
Apaman Co., Ltd.		2,100		13,415
Arakawa Chemical Industries, Ltd.		6,600		78,583
Arata Corp.		4,200		166,037
Araya Industrial Co., Ltd.		2,600		35,798
Arcland Sakamoto Co., Ltd.		10,600		129,354
Arcland Service Holdings Co., Ltd.		2,800		55,230
Arcs Co., Ltd.		13,364		299,493
Ardepro Co., Ltd. (a)		18,900		7,331
Arealink Co., Ltd.		1,400		14,731
Argo Graphics, Inc.		2,800		96,630
Japan—(Continued)
Arisawa Manufacturing Co., Ltd.		14,300		94,980
Arrk Corp. (a)		22,600		15,505
Artnature, Inc.		5,000		29,118
Asahi Broadcasting Corp.		2,400		15,763
Asahi Co., Ltd.		4,500		56,632
Asahi Diamond Industrial Co., Ltd.		21,200		116,989
Asahi Holdings, Inc.		9,000		183,989
Asahi Kogyosha Co., Ltd.		1,700		50,976
Asahi Net, Inc.		5,000		22,234
Asahi Printing Co., Ltd.		400		3,719
ASAHI YUKIZAI Corp.		5,000		65,867
Asahipen Corp.		400		6,409
Asanuma Corp.		2,400		59,531
Asax Co., Ltd.		5,400		27,058
Ashimori Industry Co., Ltd.		1,600		19,716
ASKA Pharmaceutical Co., Ltd.		7,500		75,248
Asukanet Co., Ltd.		1,300		15,130
Asunaro Aoki Construction Co., Ltd.		5,800		49,671
Ateam, Inc.		1,300		17,321
Atom Corp.		14,300		123,666
Atrae, Inc. (a)		700		15,063
Atsugi Co., Ltd.		6,100		52,990
Aucnet, Inc.		700		6,259
Autobacs Seven Co., Ltd.		22,700		377,724
Avex, Inc.		12,000		153,519
Awa Bank, Ltd. (The)		14,600		379,892
Axell Corp.		3,800		15,578
Axial Retailing, Inc.		5,100		170,522
Azia Co., Ltd.		1,500		14,791
Bando Chemical Industries, Ltd.		15,400		144,985
Bank of Iwate, Ltd. (The)		6,000		193,985
Bank of Kochi, Ltd. (The)		1,600		11,076
Bank of Nagoya, Ltd. (The)		5,400		161,917
Bank of Okinawa, Ltd. (The)		9,160		263,658
Bank of Saga, Ltd. (The)		6,100		97,911
Bank of the Ryukyus, Ltd.		15,800		162,636
Baroque Japan, Ltd.		1,100		9,276
BayCurrent Consulting, Inc.		2,900		60,097
Beenos, Inc.		1,400		15,599
Belc Co., Ltd.		2,800		131,245
Bell System24 Holdings, Inc.		6,100		71,006
Belluna Co., Ltd.		13,800		124,314
Bengo4.com, Inc. (a)		1,200		34,686
Billing System Corp.		500		18,415
Biofermin Pharmaceutical Co., Ltd.		500		11,487
BML, Inc.		7,600		194,052
Bookoff Group Holdings, Ltd.		4,700		32,237
Bourbon Corp.		600		10,395
BP Castrol KK		2,600		28,754
Br Holdings Corp.		4,000		11,541
BrainPad, Inc. (a)		1,100		53,945
Broadleaf Co., Ltd. (e)		20,400		98,485
BRONCO BILLY Co., Ltd.		2,400		59,424
Bull-Dog Sauce Co., Ltd.		600		11,015
Bunka Shutter Co., Ltd.		19,000		123,334
C Uyemura & Co., Ltd.		2,800		159,181
C.I. Takiron Corp.		18,000		95,365

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
CAC Holdings Corp.		6,200	$	52,903
Can Do Co., Ltd.		3,500		51,255
Canare Electric Co., Ltd.		800		12,349
Canon Electronics, Inc.		7,400		128,940
Capital Asset Planning, Inc.		400		8,460
Career Design Center Co., Ltd.		1,600		15,587
CareerIndex, Inc.		1,600		21,660
Carlit Holdings Co., Ltd.		7,300		48,163
Cawachi, Ltd.		5,700		93,735
Central Automotive Products, Ltd.		800		10,641
Central Glass Co., Ltd.		15,000		299,416
Central Security Patrols Co., Ltd.		1,600		71,483
Central Sports Co., Ltd.		1,600		50,648
Ceres, Inc.		1,100		16,790
Charm Care Corp.		1,600		17,299
Chiba Kogyo Bank, Ltd. (The)		16,000		52,539
Chikaranomoto Holdings Co., Ltd.		1,000		6,534
Chilled & Frozen Logistics Holdings Co., Ltd.		2,800		30,911
CHIMNEY Co., Ltd.		1,400		31,084
Chino Corp.		2,700		30,231
Chiyoda Co., Ltd.		5,800		93,132
Chiyoda Corp.		6,000		16,795
Chiyoda Integre Co., Ltd.		4,600		82,423
Chofu Seisakusho Co., Ltd.		5,700		107,807
Chori Co., Ltd.		5,000		75,738
Chubu Shiryo Co., Ltd.		7,900		87,366
Chudenko Corp.		8,600		182,663
Chuetsu Pulp & Paper Co., Ltd.		3,500		44,128
Chugai Mining Co., Ltd. (a)		68,200		9,382
Chugai Ro Co., Ltd.		2,900		53,934
Chugoku Bank, Ltd. (The)		2,200		18,479
Chugoku Marine Paints, Ltd.		22,000		180,081
Chukyo Bank, Ltd. (The)		3,900		75,740
Chuo Gyorui Co., Ltd.		200		5,063
Chuo Spring Co., Ltd.		1,400		42,349
Ci:z Holdings Co., Ltd.		4,600		247,022
Citizen Watch Co., Ltd.		47,700		236,674
CKD Corp.		17,300		144,915
Clarion Co., Ltd.		6,800		154,709
Cleanup Corp.		7,300		42,357
CMIC Holdings Co., Ltd.		3,900		60,774
CMK Corp.		18,200		100,665
Cocokara fine, Inc.		5,700		277,337
COLOPL, Inc.		11,000		75,944
Colowide Co., Ltd.		14,200		298,673
Computer Engineering & Consulting, Ltd.		9,600		158,503
Computer Institute of Japan, Ltd.		2,000		13,010
Comture Corp.		1,900		41,438
CONEXIO Corp.		4,600		57,159
COOKPAD, Inc. (a)		6,300		17,210
Corona Corp.		5,600		54,612
Cosel Co., Ltd.		9,900		84,334
Cosmo Energy Holdings Co., Ltd.		3,200		65,137
Cosmos Initia Co., Ltd.		3,500		17,980
Cota Co., Ltd.		1,600		21,134
Create Medic Co., Ltd.		1,800		16,466
Create Restaurants Holdings, Inc.		9,500		100,978
Japan—(Continued)
Create SD Holdings Co., Ltd.		6,000		142,907
Creek & River Co., Ltd.		1,300		11,146
Cresco, Ltd.		2,000		52,575
CTI Engineering Co., Ltd.		4,800		68,247
CTS Co., Ltd.		2,800		16,513
Cube System, Inc.		1,700		9,293
Cyberstep, Inc. (a)		1,200		10,848
Cybozu, Inc.		6,400		38,865
Dai Nippon Toryo Co., Ltd.		9,400		83,221
Dai-Dan Co., Ltd.		6,000		130,001
Dai-ichi Seiko Co., Ltd.		3,100		31,703
Daibiru Corp.		19,800		194,529
Daido Kogyo Co., Ltd.		2,000		15,816
Daido Metal Co., Ltd.		11,200		79,676
Daido Steel Co., Ltd.		2,100		81,887
Daidoh, Ltd.		10,800		29,878
Daihatsu Diesel Manufacturing Co., Ltd.		9,000		58,729
Daihen Corp.		7,200		143,498
Daiho Corp.		5,000		160,650
Daiichi Jitsugyo Co., Ltd.		2,800		89,501
Daiichi Kigenso Kagaku-Kogyo Co., Ltd.		5,000		36,255
Daiken Corp.		4,800		87,405
Daiken Medical Co., Ltd.		4,400		24,325
Daiki Aluminium Industry Co., Ltd.		9,000		46,167
Daiko Denshi Tsushin, Ltd.		1,300		6,304
Daikoku Denki Co., Ltd.		2,700		36,623
Daikokutenbussan Co., Ltd.		1,900		70,949
Daikyonishikawa Corp.		5,200		50,607
Dainichi Co., Ltd.		4,100		24,188
Dainichiseika Color & Chemicals Manufacturing Co., Ltd.		5,000		125,114
Daio Paper Corp.		15,800		181,633
Daiseki Co., Ltd.		10,700		220,066
Daiseki Eco. Solution Co., Ltd.		2,400		12,602
Daishi Hokuetsu Financial Group, Inc.		15,100		420,387
Daishinku Corp.		2,600		20,469
Daisue Construction Co., Ltd.		2,300		20,390
Daisyo Corp.		2,200		30,769
Daito Bank, Ltd. (The)		5,200		29,171
Daito Pharmaceutical Co., Ltd.		3,960		107,528
Daitron Co., Ltd.		800		8,904
Daiwa Industries, Ltd.		11,000		112,075
Daiwabo Holdings Co., Ltd.		6,100		285,426
Daiyu Lic Holdings Co., Ltd.		1,300		10,554
DCM Holdings Co., Ltd.		37,900		397,644
DD Holdings Co., Ltd.		600		11,022
Dear Life Co., Ltd.		4,700		18,089
Denki Kogyo Co., Ltd.		4,200		91,606
Densan System Co., Ltd.		1,000		20,855
Denyo Co., Ltd.		4,800		58,400
Descente, Ltd.		13,700		223,031
Dexerials Corp.		7,800		57,799
Digital Arts, Inc.		2,600		143,313
Digital Information Technologies Corp.		1,300		15,230
Dip Corp.		6,900		114,103
DKS Co., Ltd.		3,600		90,518
DMG Mori Co., Ltd. (e)		17,900		199,782
DMW Corp.		700		13,585

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Doshisha Co., Ltd.		8,200	$	131,238
Doutor Nichires Holdings Co., Ltd.		11,500		211,251
Dowa Holdings Co., Ltd.		5,900		176,094
Dream Incubator, Inc.		600		6,631
DSB Co., Ltd.		5,300		18,645
DTS Corp.		6,600		209,448
Duskin Co., Ltd.		13,700		299,404
DyDo Group Holdings, Inc.		2,700		141,990
Dynic Corp.		3,200		20,959
E-Guardian, Inc.		2,400		45,216
Eagle Industry Co., Ltd.		7,800		91,351
Earth Corp.		300		13,726
EAT&Co, Ltd.		1,400		19,223
Ebara Jitsugyo Co., Ltd.		2,500		41,292
Eco’s Co., Ltd.		800		14,757
EDION Corp.		28,900		283,971
EF-ON, Inc.		1,200		9,222
eGuarantee, Inc.		4,800		42,667
Ehime Bank, Ltd. (The)		11,400		112,250
Eidai Co., Ltd.		10,000		38,450
Eighteenth Bank, Ltd. (The)		7,000		156,839
Eiken Chemical Co., Ltd.		9,200		202,748
Eizo Corp.		6,300		232,411
Elan Corp.		1,200		14,857
Elecom Co., Ltd.		5,100		129,465
Elematec Corp.		4,000		70,344
EM Systems Co., Ltd.		3,600		33,184
Endo Lighting Corp.		2,600		16,847
Enigmo, Inc. (a)		1,300		24,213
Enplas Corp.		3,400		83,924
Enshu, Ltd. (a)		2,300		20,490
EPS Holdings, Inc.		7,900		119,280
eRex Co., Ltd.		6,100		31,449
ES-Con Japan, Ltd.		4,900		28,644
Escrow Agent Japan, Inc.		5,100		16,155
ESPEC Corp.		7,100		122,300
Excel Co., Ltd.		2,500		45,158
Exedy Corp.		11,600		283,324
Extreme Co., Ltd.		700		19,952
F-Tech, Inc.		3,600		30,241
F@N Communications, Inc.		9,600		47,195
Faith, Inc.		2,680		20,387
FALCO HOLDINGS Co., Ltd.		3,100		41,888
FCC Co., Ltd.		12,600		297,761
FDK Corp. (a) (e)		2,500		20,757
Feed One Co., Ltd.		41,380		67,520
Ferrotec Holdings Corp.		10,400		75,181
FFRI, Inc. (a)		1,000		24,718
FIDEA Holdings Co., Ltd.		62,510		76,577
Fields Corp.		6,000		41,956
Financial Products Group Co., Ltd.		20,000		206,792
FINDEX, Inc.		3,900		18,936
First Brothers Co., Ltd.		900		10,095
First Juken Co., Ltd.		3,400		36,915
First-corp, Inc.		1,600		10,401
Fixstars Corp.		2,700		24,428
Foster Electric Co., Ltd.		8,800		100,917
Japan—(Continued)
France Bed Holdings Co., Ltd.		9,300		75,967
Freebit Co., Ltd.		2,100		14,189
Freund Corp.		2,400		17,851
Fronteo, Inc. (a)		3,100		18,699
FTGroup Co., Ltd.		1,500		19,207
Fudo Tetra Corp.		6,030		93,684
Fuji Co., Ltd.		6,700		113,915
Fuji Corp.		12,100		141,357
Fuji Corp., Ltd.		8,600		64,311
Fuji Kyuko Co., Ltd.		6,500		190,183
Fuji Oil Co., Ltd.		21,100		56,940
Fuji Pharma Co., Ltd.		4,600		74,574
Fuji Seal International, Inc.		6,400		224,081
Fuji Soft, Inc.		7,300		274,512
Fujibo Holdings, Inc.		3,700		82,714
Fujicco Co., Ltd.		7,100		153,982
Fujikura Kasei Co., Ltd.		9,500		51,323
Fujikura Rubber, Ltd.		5,800		23,749
Fujikura, Ltd.		69,700		275,884
Fujimi, Inc.		3,700		70,669
Fujimori Kogyo Co., Ltd.		4,800		128,565
Fujio Food System Co., Ltd.		600		10,149
Fujisash Co., Ltd.		24,500		17,049
Fujishoji Co., Ltd.		1,300		11,143
Fujita Kanko, Inc.		800		20,129
Fujitec Co., Ltd.		19,500		207,657
Fujitsu Frontech, Ltd.		4,500		43,379
Fujitsu General, Ltd.		11,500		148,479
Fujiya Co., Ltd.		1,200		25,073
FuKoKu Co., Ltd.		5,100		40,286
Fukuda Corp.		1,600		58,979
Fukui Bank, Ltd. (The)		9,200		132,952
Fukui Computer Holdings, Inc.		1,300		16,232
Fukushima Bank, Ltd. (The) (a)		11,200		40,696
Fukushima Industries Corp.		4,200		135,376
Fukuyama Transporting Co., Ltd.		7,700		295,797
FULLCAST Holdings Co., Ltd.		4,300		70,836
Fumakilla, Ltd.		2,500		26,080
Funai Electric Co., Ltd. (a) (e)		7,900		38,226
Funai Soken Holdings, Inc.		10,770		162,549
Furukawa Battery Co., Ltd. (The)		5,000		30,169
Furukawa Co., Ltd.		10,500		119,100
Furukawa Electric Co., Ltd.		2,000		49,766
Furuno Electric Co., Ltd.		10,500		112,398
Furusato Industries, Ltd.		3,700		54,832
Furuya Metal Co., Ltd.		400		18,078
Fuso Chemical Co., Ltd.		4,000		71,233
Fuso Pharmaceutical Industries, Ltd.		2,600		60,810
Futaba Corp.		10,200		146,048
Futaba Industrial Co., Ltd.		19,600		97,815
Future Corp.		8,400		114,733
Fuyo General Lease Co., Ltd.		5,600		282,944
G-7 Holdings, Inc.		500		10,149
G-Tekt Corp.		7,700		101,455
Gakken Holdings Co., Ltd.		1,600		62,475
Gakkyusha Co., Ltd.		700		9,409
Gakujo Co., Ltd.		1,700		18,720

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Gecoss Corp.		4,600	$	42,744
Genki Sushi Co., Ltd.		1,600		64,750
Genky DrugStores Co., Ltd.		2,400		64,334
Geo Holdings Corp.		12,300		185,864
Giken, Ltd.		2,800		89,017
GLOBERIDE, Inc.		3,500		83,060
Glory, Ltd.		7,900		177,011
GMO Click Holdings, Inc.		1,800		9,223
GMO Cloud K.K.		700		19,448
GMO internet, Inc.		16,700		220,186
Godo Steel, Ltd.		4,100		59,298
Goldcrest Co., Ltd.		7,230		103,873
Golf Digest Online, Inc.		900		5,739
Grace Technology, Inc.		900		14,174
Grandy House Corp.		3,600		12,634
Gree, Inc.		26,400		104,116
GS Yuasa Corp.		12,400		252,001
GSI Creos Corp.		2,800		30,990
Gumi, Inc. (a)		2,900		14,383
Gun-Ei Chemical Industry Co., Ltd.		1,800		41,637
GungHo Online Entertainment, Inc. (a) (e)		41,700		76,409
Gunosy, Inc. (a)		2,000		50,608
Gunze, Ltd.		6,900		260,413
Gurunavi, Inc.		8,500		52,251
H-One Co., Ltd.		6,000		53,406
H2O Retailing Corp.		7,600		107,186
HABA Laboratories, Inc.		500		32,446
Hagihara Industries, Inc.		4,000		55,344
Hakudo Co., Ltd.		500		7,215
Hakuto Co., Ltd.		5,900		60,207
Hakuyosha Co., Ltd.		800		20,490
Hamakyorex Co., Ltd.		5,600		192,160
Hamee Corp.		1,800		16,501
Hanwa Co., Ltd.		12,800		332,176
Happinet Corp.		5,000		63,552
Hard Off Corp. Co., Ltd.		3,700		27,625
Harima Chemicals Group, Inc.		7,100		59,640
Haruyama Holdings, Inc.		5,400		40,500
Hazama Ando Corp.		54,490		362,400
Hearts United Group Co., Ltd.		2,600		32,937
Heiwa Real Estate Co., Ltd.		14,400		227,597
Heiwado Co., Ltd.		11,200		256,554
Helios Techno Holding Co., Ltd.		1,900		10,566
HI-LEX Corp.		7,700		152,324
Hibiya Engineering, Ltd.		7,800		130,918
Hiday Hidaka Corp.		5,815		116,186
Himaraya Co., Ltd.		2,600		21,699
Hinokiya Group Co., Ltd.		700		13,663
Hioki EE Corp.		2,300		74,230
Hiramatsu, Inc.		8,300		25,325
Hirano Tecseed Co., Ltd.		500		6,123
Hirata Corp.		1,700		76,650
Hirose Tusyo, Inc.		300		4,785
Hiroshima Gas Co., Ltd.		3,600		11,170
Hisaka Works, Ltd.		9,600		71,230
Hitachi Maxell, Ltd.		8,200		108,589
Hitachi Zosen Corp.		61,600		185,988
Japan—(Continued)
Hito Communications, Inc.		1,700		21,311
Hochiki Corp.		4,600		47,779
Hodogaya Chemical Co., Ltd.		1,800		33,167
Hogy Medical Co., Ltd.		7,100		202,706
Hokkaido Electric Power Co., Inc.		40,100		278,694
Hokkaido Gas Co., Ltd.		5,400		74,788
Hokkan Holdings, Ltd.		5,000		79,803
Hokko Chemical Industry Co., Ltd.		8,000		32,010
Hokkoku Bank, Ltd. (The)		10,100		323,440
Hokuetsu Corp.		47,900		216,503
Hokuetsu Industries Co., Ltd.		7,000		66,545
Hokuhoku Financial Group, Inc.		23,700		265,536
Hokuriku Electric Industry Co., Ltd.		2,800		23,843
Hokuriku Electric Power Co. (a)		28,000		244,203
Hokuriku Electrical Construction Co., Ltd.		3,000		25,233
Hokuriku Gas Co., Ltd.		1,000		27,822
Hokuto Corp.		7,100		124,975
Honda Tsushin Kogyo Co., Ltd.		1,200		5,278
Honeys Holdings Co., Ltd.		6,930		48,791
Honma Golf, Ltd.		27,000		31,047
Hoosiers Holdings Co., Ltd.		8,000		45,427
Horiba, Ltd.		3,100		125,391
Hosiden Corp.		20,000		132,476
Hosokawa Micron Corp.		2,200		83,044
Hotland Co., Ltd.		900		10,237
House Do Co., Ltd.		600		5,476
Howa Machinery, Ltd.		5,700		37,045
Hyakugo Bank, Ltd. (The)		88,000		312,380
Hyakujushi Bank, Ltd. (The)		9,800		231,200
I’rom Group Co., Ltd.		1,100		15,131
I-Net Corp.		3,520		43,799
I.K Co., Ltd.		900		4,705
Ibiden Co., Ltd.		27,300		381,569
IBJ Leasing Co., Ltd.		7,200		157,222
IBJ, Inc. (a)		3,500		22,180
Ichibanya Co., Ltd.		2,100		79,444
Ichigo, Inc.		56,600		162,898
Ichiken Co., Ltd.		2,400		45,114
Ichikoh Industries, Ltd.		9,000		44,759
ICHINEN HOLDINGS Co., Ltd.		7,400		78,033
Ichiyoshi Securities Co., Ltd.		12,600		91,745
Icom, Inc.		3,800		68,309
Idec Corp.		7,500		129,884
IDOM, Inc.		20,400		67,293
Ihara Science Corp.		900		13,213
Iino Kaiun Kaisha, Ltd.		32,200		117,021
IJT Technology Holdings Co., Ltd.		9,000		49,306
Ikegami Tsushinki Co., Ltd.		2,600		26,790
Imagica Group, Inc.		4,500		20,525
Imasen Electric Industrial		7,200		63,937
Imuraya Group Co., Ltd.		1,200		26,261
Inaba Denki Sangyo Co., Ltd.		8,100		304,417
Inaba Seisakusho Co., Ltd.		2,100		24,014
Inabata & Co., Ltd.		17,700		223,755
Inageya Co., Ltd.		9,700		125,526
Ines Corp.		9,500		97,901
Infocom Corp.		4,000		143,969

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Infomart Corp.		15,400	$	142,169
Information Development Co.		1,200		13,656
Information Services International-Dentsu, Ltd.		4,300		108,404
Innotech Corp.		8,200		69,306
Insource Co., Ltd.		500		8,257
Intage Holdings, Inc.		11,600		94,775
Intelligent Wave, Inc.		3,400		19,850
Inter Action Corp.		1,700		28,668
Internet Initiative Japan, Inc.		9,800		220,323
Inui Global Logistics Co., Ltd.		5,355		38,747
IR Japan Holdings, Ltd.		1,400		15,413
Iriso Electronics Co., Ltd.		5,000		182,921
Ise Chemicals Corp.		1,000		26,290
Iseki & Co., Ltd.		7,400		105,189
Ishihara Sangyo Kaisha, Ltd. (a)		12,200		118,603
Ishii Iron Works Co., Ltd.		900		14,061
Ishizuka Glass Co., Ltd.		500		8,766
Isolite Insulating Products Co., Ltd.		2,900		12,113
Istyle, Inc.		9,800		72,080
ITbook Holdings Co., Ltd. (a)		3,900		12,024
Itfor, Inc.		5,200		31,898
Itochu Enex Co., Ltd.		19,400		170,918
Itochu-Shokuhin Co., Ltd.		2,400		103,943
Itoki Corp.		15,600		84,480
Itokuro, Inc. (a)		800		22,616
IwaiCosmo Holdings, Inc.		7,900		84,533
Iwaki & Co., Ltd.		9,000		34,469
Iwasaki Electric Co., Ltd.		2,500		29,638
Iwatani Corp.		11,600		386,512
Iwatsuka Confectionery Co., Ltd.		500		17,085
Iyo Bank, Ltd. (The)		16,000		83,941
J Trust Co., Ltd.		6,000		22,433
J-Oil Mills, Inc.		4,000		139,605
JAC Recruitment Co., Ltd.		1,600		27,467
Jaccs Co., Ltd.		1,500		24,465
Jafco Co., Ltd.		6,400		202,560
Jalux, Inc.		2,400		55,265
Jamco Corp.		3,400		79,487
Janome Sewing Machine Co., Ltd.		7,099		30,035
Japan Asia Investment Co., Ltd. (a)		4,900		8,108
Japan Asset Marketing Co., Ltd. (a)		29,300		26,034
Japan Aviation Electronics Industry, Ltd.		8,000		91,784
Japan Best Rescue System Co., Ltd.		2,900		33,040
Japan Display, Inc. (a) (e)		81,900		54,180
Japan Elevator Service Holdings Co., Ltd.		2,400		36,502
Japan Foundation Engineering Co., Ltd.		10,200		29,040
Japan Investment Adviser Co., Ltd.		800		22,720
Japan Lifeline Co., Ltd.		12,700		161,394
Japan Material Co., Ltd.		11,900		117,101
Japan Meat Co., Ltd.		1,300		20,006
Japan Medical Dynamic Marketing, Inc.		3,000		30,193
Japan Oil Transportation Co., Ltd.		700		18,185
Japan Petroleum Exploration Co., Ltd.		8,200		147,401
Japan Property Management Center Co., Ltd.		2,000		15,437
Japan Pulp & Paper Co., Ltd.		3,700		141,125
Japan Securities Finance Co., Ltd.		5,400		26,969
Japan Steel Works, Ltd. (The)		13,000		207,454
Japan—(Continued)
Japan Transcity Corp.		12,000		47,597
Japan Wool Textile Co., Ltd. (The)		19,700		149,356
Jastec Co., Ltd.		5,100		41,506
JBCC Holdings, Inc.		7,000		100,118
JCU Corp.		6,400		81,925
Jeol, Ltd.		11,000		165,048
JIG-SAW, Inc. (a)		900		18,111
Jimoto Holdings, Inc.		67,900		77,725
JINS, Inc.		4,200		220,717
JK Holdings Co., Ltd.		5,600		29,196
JMS Co., Ltd.		7,500		37,872
Joban Kosan Co., Ltd.		1,700		24,788
Joshin Denki Co., Ltd.		7,000		152,926
Joyful Honda Co., Ltd.		1,200		15,034
JP-Holdings, Inc.		17,900		41,752
JSP Corp.		5,100		99,308
Juki Corp.		11,200		114,495
Juroku Bank, Ltd. (The)		12,200		253,480
Justsystems Corp.		9,700		185,947
JVC Kenwood Corp.		53,300		115,186
K&O Energy Group, Inc.		5,400		73,287
kabu.com Securities Co., Ltd.		47,800		163,410
Kadokawa Dwango (a)		12,508		132,178
Kaga Electronics Co., Ltd.		7,200		130,873
Kakiyasu Honten Co., Ltd.		3,800		80,166
Kamakura Shinsho, Ltd.		2,400		31,069
Kameda Seika Co., Ltd.		4,100		185,779
Kamei Corp.		8,700		99,046
Kanaden Corp.		7,200		75,858
Kanagawa Chuo Kotsu Co., Ltd.		2,400		83,011
Kanamic Network Co., Ltd.		800		12,686
Kanamoto Co., Ltd.		8,800		233,626
Kandenko Co., Ltd.		300		2,893
Kanematsu Corp.		29,800		360,577
Kanematsu Electronics, Ltd.		3,900		116,506
Kanemi Co., Ltd.		100		2,715
Kansai Mirai Financial Group, Inc. (a)		23,031		164,313
Kanto Denka Kogyo Co., Ltd.		15,000		107,562
Kappa Create Co., Ltd.		4,400		55,568
Kasai Kogyo Co., Ltd.		8,600		64,737
Katakura &Co-op Agri Corp.		1,600		15,547
Katakura Industries Co., Ltd.		9,500		96,194
Kato Sangyo Co., Ltd.		7,100		195,945
Kato Works Co., Ltd.		3,800		88,471
Kawada Technologies, Inc.		1,500		96,318
Kawai Musical Instruments Manufacturing Co., Ltd.		2,600		70,944
Kawasaki Kinkai Kisen Kaisha, Ltd.		700		19,837
Kawasaki Kisen Kaisha, Ltd. (a) (e)		12,200		149,982
Kawasumi Laboratories, Inc.		4,900		28,466
Keihanshin Building Co., Ltd.		14,500		108,238
Keihin Co.,Ltd./Minato-Ku Tokyo Japan		2,300		26,465
Keihin Corp.		15,600		259,539
Keiyo Bank, Ltd. (The)		44,500		287,450
Keiyo Co., Ltd. (e)		14,400		68,826
Kenedix, Inc.		41,200		177,903
Kenko Mayonnaise Co., Ltd.		3,200		56,262
KEY Coffee, Inc.		6,700		127,666

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
KFC Holdings Japan, Ltd.		4,000	$	71,726
KH Neochem Co., Ltd.		3,300		68,367
Ki-Star Real Estate Co., Ltd.		600		8,915
Kimoto Co., Ltd.		14,900		24,502
Kimura Chemical Plants Co., Ltd.		3,300		10,476
King Jim Co., Ltd.		5,800		44,448
Kinki Sharyo Co., Ltd. (The) (a)		1,200		21,699
Kintetsu Department Store Co., Ltd. (a)		1,900		59,901
Kintetsu World Express, Inc.		10,800		157,915
Kirindo Holdings Co., Ltd.		800		9,122
Kissei Pharmaceutical Co., Ltd.		8,100		206,153
Kita-Nippon Bank, Ltd. (The)		2,900		59,215
Kitagawa Iron Works Co., Ltd.		3,100		63,628
Kitano Construction Corp.		1,400		42,131
Kitanotatsujin Corp.		7,600		26,054
Kito Corp.		5,900		79,845
Kitz Corp.		31,200		241,343
Kiyo Bank, Ltd. (The)		25,000		354,164
KLab, Inc. (a)		10,600		80,948
KNT-CT Holdings Co., Ltd. (a)		3,300		33,360
Koa Corp.		10,200		118,598
Koatsu Gas Kogyo Co., Ltd.		11,100		87,084
Kobe Bussan Co., Ltd.		4,800		141,358
Kobe Electric Railway Co., Ltd. (a)		500		17,960
KobelcoEco-Solutions Co., Ltd.		1,200		16,335
Kohnan Shoji Co., Ltd.		10,400		254,013
Kohsoku Corp.		4,000		36,267
Koike Sanso Kogyo Co., Ltd.		700		13,209
Kojima Co., Ltd. (a)		12,000		51,850
Kokusai Co., Ltd.		3,400		23,665
Kokuyo Co., Ltd.		18,900		275,515
KOMAIHALTEC, Inc.		1,800		29,923
Komatsu Seiren Co., Ltd.		10,200		71,136
Komatsu Wall Industry Co., Ltd.		2,700		47,224
KOMEDA Holdings Co., Ltd.		11,100		218,307
Komeri Co., Ltd.		12,300		263,476
Komori Corp.		18,900		188,670
Konaka Co., Ltd.		7,300		29,173
Kondotec, Inc.		7,900		71,110
Konishi Co., Ltd.		9,900		149,458
Konoike Transport Co., Ltd.		3,200		46,371
Kosaido Co., Ltd.		3,700		12,971
Koshidaka Holdings Co., Ltd.		10,000		119,267
Kotobuki Spirits Co., Ltd.		6,000		229,101
Kourakuen Holdings Corp. (a)		2,900		69,502
Kozo Keikaku Engineering, Inc.		700		12,840
Krosaki Harima Corp.		1,900		113,972
KRS Corp.		2,200		41,347
KU Holdings Co., Ltd.		8,000		58,492
Kumagai Gumi Co., Ltd.		9,100		271,928
Kumiai Chemical Industry Co., Ltd.		21,195		124,551
Kura Corp.		3,300		162,910
Kurabo Industries, Ltd.		7,600		172,801
Kureha Corp.		5,200		285,864
Kurimoto, Ltd.		3,500		43,980
KYB Corp.		7,400		178,537
Kyodo Printing Co., Ltd.		3,000		66,498
Japan—(Continued)
Kyoei Steel, Ltd.		6,100		91,399
Kyokuto Boeki Kaisha, Ltd.		1,800		24,345
Kyokuto Kaihatsu Kogyo Co., Ltd.		11,400		145,391
Kyokuto Securities Co., Ltd.		7,600		80,779
Kyokuyo Co., Ltd.		3,500		92,400
KYORIN Holdings, Inc.		15,500		341,468
Kyoritsu Maintenance Co., Ltd.		6,018		262,136
Kyoritsu Printing Co., Ltd.		6,800		11,905
Kyosan Electric Manufacturing Co., Ltd.		16,000		60,848
Kyowa Electronic Instruments Co., Ltd.		8,000		26,534
Kyowa Leather Cloth Co., Ltd.		3,300		23,489
Kyushu Financial Group, Inc.		4,000		15,097
LAC Co., Ltd.		5,900		72,905
Lacto Japan Co., Ltd.		700		44,005
Lasertec Corp.		12,200		306,133
LEC, Inc.		8,800		129,315
Leopalace21 Corp.		82,400		324,183
Life Corp.		4,400		90,834
LIFULL Co., Ltd.		17,000		114,156
Like Co., Ltd.		2,100		23,712
Linical Co., Ltd.		1,700		19,675
Link And Motivation, Inc.		8,900		67,288
Lintec Corp.		10,300		221,070
Litalico, Inc. (a)		900		13,212
Look Holdings, Inc.		2,200		19,363
M&A Capital Partners Co., Ltd. (a)		1,200		40,842
m-up, Inc.		700		10,616
Macnica Fuji Electronics Holdings, Inc.		14,550		180,056
Macromill, Inc.		6,400		82,525
Maeda Kosen Co., Ltd.		5,700		138,234
Maeda Road Construction Co., Ltd.		16,000		329,656
Maezawa Kasei Industries Co., Ltd.		5,700		56,378
Maezawa Kyuso Industries Co., Ltd.		3,900		65,758
Makino Milling Machine Co., Ltd.		8,000		281,191
Mamezou Holdings Co., Ltd.		4,800		41,016
Mamiya-Op Co., Ltd.		1,900		15,204
Mandom Corp.		6,900		188,406
Mani, Inc.		5,700		214,536
MarkLines Co., Ltd.		1,600		17,663
Mars Engineering Corp.		3,600		72,021
Marubun Corp.		8,200		50,246
Marudai Food Co., Ltd.		7,600		119,326
Marufuji Sheet Piling Co., Ltd.		1,300		25,230
Maruha Nichiro Corp.		8,700		294,036
Maruka Machinery Co., Ltd.		900		15,353
Marumae Co., Ltd.		1,000		5,898
Marusan Securities Co., Ltd.		11,300		78,468
Maruwa Co., Ltd.		3,700		186,584
Maruwa Unyu Kikan Co., Ltd.		1,100		27,310
Maruyama Manufacturing Co., Inc.		1,500		17,278
Maruzen CHI Holdings Co., Ltd. (a)		11,900		34,785
Maruzen Showa Unyu Co., Ltd.		4,600		114,493
Marvelous, Inc.		9,500		67,393
Matching Service Japan Co., Ltd.		1,200		14,629
Matsuda Sangyo Co., Ltd.		5,900		78,620
Matsui Construction Co., Ltd.		7,800		52,195
Matsuya Foods Co., Ltd.		2,500		82,630

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Max Co., Ltd.		11,000	$	137,330
Maxvalu Nishinihon Co., Ltd.		2,400		39,001
Maxvalu Tokai Co., Ltd.		3,500		74,469
MCJ Co., Ltd.		14,000		85,189
MEC Co., Ltd.		5,800		55,833
Media Do Holdings Co., Ltd.		1,000		19,445
Medical Data Vision Co., Ltd. (a) (e)		3,800		31,277
Medical System Network Co., Ltd.		5,300		18,021
Megachips Corp.		3,800		79,592
Megmilk Snow Brand Co., Ltd.		8,000		207,200
Meidensha Corp.		11,600		147,202
Meiji Shipping Co., Ltd.		8,500		25,331
Meiko Electronics Co., Ltd.		7,500		122,031
Meiko Network Japan Co., Ltd.		7,200		59,040
Meisei Industrial Co., Ltd.		13,500		88,020
Meitec Corp.		7,700		310,511
Meito Sangyo Co., Ltd.		3,000		35,523
Meiwa Corp.		8,100		28,432
Meiwa Estate Co., Ltd.		5,200		26,631
Menicon Co., Ltd.		4,100		103,997
Mercuria Investment Co., Ltd.		2,100		13,074
METAWATER Co., Ltd.		1,300		34,967
Michinoku Bank, Ltd. (The)		5,700		88,998
Micronics Japan Co., Ltd.		1,400		8,923
Mie Kotsu Group Holdings, Inc.		4,000		21,733
Mikuni Corp.		3,000		13,978
Milbon Co., Ltd.		7,320		299,702
MIMAKI ENGINEERING Co., Ltd.		1,900		14,345
Mimasu Semiconductor Industry Co., Ltd.		6,800		81,542
Ministop Co., Ltd.		5,400		101,368
Miraca Holdings, Inc.		10,200		229,904
Miraial Co., Ltd.		2,900		23,603
Mirait Holdings Corp.		24,080		352,308
Miroku Jyoho Service Co., Ltd.		5,900		132,234
Misawa Homes Co., Ltd.		6,700		45,355
Mitani Corp.		6,900		347,231
Mitani Sekisan Co., Ltd.		4,100		96,266
Mito Securities Co., Ltd.		24,000		55,990
Mitsuba Corp.		12,300		69,686
Mitsubishi Logisnext Co., Ltd.		8,000		76,905
Mitsubishi Paper Mills, Ltd.		12,000		57,872
Mitsubishi Pencil Co., Ltd.		6,400		125,769
Mitsubishi Research Institute, Inc.		2,000		57,288
Mitsubishi Shokuhin Co., Ltd.		4,800		122,197
Mitsubishi Steel Manufacturing Co., Ltd.		5,900		85,771
Mitsuboshi Belting, Ltd.		8,500		163,838
Mitsui Engineering & Shipbuilding Co., Ltd. (a)		30,000		279,723
MitsuiHigh-Tec, Inc.		9,500		73,208
Mitsui Matsushima Co., Ltd.		5,200		63,963
Mitsui Mining & Smelting Co., Ltd.		11,600		237,655
Mitsui Sugar Co., Ltd.		6,100		154,431
Mitsui-Soko Holdings Co., Ltd. (a)		7,400		126,851
Mitsumura Printing Co., Ltd.		500		8,061
Mitsuuroko Group Holdings Co., Ltd.		12,900		83,778
Mixi, Inc.		5,000		105,542
Miyaji Engineering Group, Inc.		1,800		31,102
Miyazaki Bank, Ltd. (The)		6,000		157,438
Japan—(Continued)
Miyoshi Oil & Fat Co., Ltd.		2,800		26,575
Mizuno Corp.		6,600		139,718
Mochida Pharmaceutical Co., Ltd.		3,200		264,008
Modec, Inc.		3,000		61,775
Monex Group, Inc.		65,600		219,078
Money Partners Group Co., Ltd.		7,100		17,621
Monogatari Corp. (The)		1,700		136,218
MORESCO Corp.		2,500		33,462
Morinaga Milk Industry Co., Ltd.		10,400		293,087
Morita Holdings Corp.		11,200		184,331
Morozoff, Ltd.		900		40,974
Mory Industries, Inc.		2,800		61,042
Mr. Max Holdings, Ltd.		10,500		44,874
MTI, Ltd.		9,200		52,422
Mugen Estate Co., Ltd.		400		1,893
Murakami Corp.		3,000		62,181
Musashi Seimitsu Industry Co., Ltd.		15,800		222,483
Musashino Bank, Ltd. (The)		11,200		258,649
Mutoh Holdings Co., Ltd.		900		14,531
Mynet, Inc. (a)		1,000		15,953
N Field Co., Ltd.		1,300		11,347
NAC Co., Ltd.		3,600		33,748
Nachi-Fujikoshi Corp. (e)		6,000		206,732
Nafco Co., Ltd.		1,400		19,659
Nagaileben Co., Ltd.		4,600		98,069
Nagano Bank, Ltd. (The)		3,500		53,004
Nagano Keiki Co., Ltd.		4,200		28,881
Nagase & Co., Ltd.		10,300		141,352
Nagatanien Holdings Co., Ltd.		4,000		86,585
Nagawa Co., Ltd.		2,800		140,439
Nakabayashi Co., Ltd.		5,500		28,144
Nakamuraya Co., Ltd.		1,600		61,186
Nakanishi, Inc.		8,000		135,805
Nakano Corp.		4,000		18,276
Nakayama Steel Works, Ltd.		6,300		27,265
Nakayamafuku Co., Ltd.		2,000		8,932
Namura Shipbuilding Co., Ltd.		18,956		81,901
Nanto Bank, Ltd. (The)		9,200		179,193
Narasaki Sangyo Co., Ltd.		800		11,897
Natori Co., Ltd.		2,600		39,463
NEC Capital Solutions, Ltd.		3,800		53,242
NEC Networks & System Integration Corp.		7,800		174,316
NET One Systems Co., Ltd.		17,300		307,776
Neturen Co., Ltd.		9,800		74,554
New Japan Chemical Co., Ltd. (a)		9,900		13,345
Nextage Co., Ltd.		5,900		58,783
Nexyz Group Corp.		1,300		21,617
Nice Holdings, Inc.		3,100		24,880
Nichi-iko Pharmaceutical Co., Ltd.		13,200		194,746
Nichia Steel Works, Ltd.		13,000		31,631
Nichias Corp.		16,500		285,045
Nichiban Co., Ltd.		4,000		69,228
Nichicon Corp.		20,100		144,917
Nichiden Corp.		5,200		75,398
Nichiha Corp.		9,000		227,901
NichiiGakkan Co., Ltd.		11,800		110,219
Nichimo Co., Ltd.		1,600		23,807

See accompanying notes to financial statements.

BHFTII-24

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Nichireki Co., Ltd.		9,000	$	86,021
Nihon Chouzai Co., Ltd.		1,660		48,270
Nihon Dempa Kogyo Co., Ltd. (a)		7,600		26,317
Nihon Eslead Corp.		2,700		35,819
Nihon Flush Co., Ltd.		800		12,709
Nihon House Holdings Co., Ltd.		15,000		56,827
Nihon Kagaku Sangyo Co., Ltd.		3,000		27,377
Nihon Nohyaku Co., Ltd. (e)		14,000		64,500
Nihon Parkerizing Co., Ltd.		24,800		286,362
Nihon Plast Co., Ltd.		2,500		16,391
Nihon Tokushu Toryo Co., Ltd.		2,200		26,144
Nihon Yamamura Glass Co., Ltd.		3,800		53,916
Nikkato Corp.		300		2,374
Nikkiso Co., Ltd.		18,600		154,570
Nikko Co., Ltd.		1,800		38,407
Nikkon Holdings Co., Ltd.		17,400		415,052
Nippon Air Conditioning Services Co., Ltd.		9,600		63,303
Nippon Beet Sugar Manufacturing Co., Ltd.		4,500		73,863
Nippon Carbide Industries Co., Inc.		2,300		36,774
Nippon Carbon Co., Ltd. (e)		1,700		61,541
Nippon Ceramic Co., Ltd.		4,600		97,534
NipponChemi-Con Corp.		5,900		102,335
Nippon Chemical Industrial Co., Ltd.		3,000		59,623
Nippon Chemiphar Co., Ltd.		800		21,170
Nippon Coke & Engineering Co., Ltd.		71,000		59,084
Nippon Commercial Development Co., Ltd.		2,500		32,473
Nippon Computer Dynamics Co., Ltd.		1,700		15,732
Nippon Concrete Industries Co., Ltd.		14,000		32,432
Nippon Denko Co., Ltd.		43,865		86,099
Nippon Densetsu Kogyo Co., Ltd.		12,500		247,080
Nippon Felt Co., Ltd.		8,600		35,442
Nippon Filcon Co., Ltd.		5,200		22,616
Nippon Fine Chemical Co., Ltd.		4,300		40,147
Nippon Flour Mills Co., Ltd.		22,500		375,568
Nippon Gas Co., Ltd.		8,400		307,020
Nippon Hume Corp.		8,200		60,447
Nippon Kanzai Co., Ltd.		4,800		83,301
Nippon Kinzoku Co., Ltd.		1,900		19,051
Nippon Kodoshi Corp.		1,600		23,925
Nippon Koei Co., Ltd.		5,000		111,769
Nippon Koshuha Steel Co., Ltd.		3,100		14,961
Nippon Light Metal Holdings Co., Ltd.		198,000		399,122
Nippon Paper Industries Co., Ltd.		18,500		330,334
Nippon Parking Development Co., Ltd.		65,100		84,757
Nippon Pillar Packing Co., Ltd.		6,500		71,965
Nippon Piston Ring Co., Ltd.		3,200		54,586
Nippon Rietec Co., Ltd.		5,800		77,739
Nippon Road Co., Ltd. (The)		2,700		141,954
Nippon Seiki Co., Ltd.		15,000		256,824
Nippon Seisen Co., Ltd.		1,200		36,358
Nippon Sharyo, Ltd. (a)		2,600		52,391
Nippon Sheet Glass Co., Ltd.		33,000		248,725
Nippon Signal Co., Ltd.		18,700		151,306
Nippon Soda Co., Ltd.		9,200		223,077
Nippon Steel & Sumikin Bussan Corp.		5,196		215,876
Nippon Suisan Kaisha, Ltd.		55,500		309,348
Nippon Systemware Co., Ltd.		1,300		21,512
Japan—(Continued)
Nippon Thompson Co., Ltd.		23,200		102,600
Nippon Valqua Industries, Ltd.		6,000		122,031
Nippon Yakin Kogyo Co., Ltd.		54,000		115,202
Nipro Corp.		17,400		212,450
Nishi-Nippon Financial Holdings, Inc.		25,200		221,206
Nishi-Nippon Railroad Co., Ltd.		12,200		305,497
Nishikawa Rubber Co., Ltd.		1,200		20,786
Nishimatsu Construction Co., Ltd.		19,400		437,833
Nishimatsuya Chain Co., Ltd.		8,800		71,718
Nishio Rent All Co., Ltd.		4,400		131,398
Nissan Shatai Co., Ltd.		1,300		11,456
Nissan Tokyo Sales Holdings Co., Ltd.		11,000		30,889
Nissei ASB Machine Co., Ltd.		2,100		67,595
Nissei Corp.		3,700		39,330
Nissei Plastic Industrial Co., Ltd.		6,000		49,693
Nissha Co., Ltd.		7,200		85,009
Nisshin Fudosan Co.		12,300		50,590
Nisshin Oillio Group, Ltd. (The)		10,200		290,285
Nisshin Steel Co., Ltd. (a) (d)		6,196		75,958
Nisshinbo Holdings, Inc.		41,320		314,731
Nissin Corp.		6,000		98,189
Nissin Electric Co., Ltd.		14,800		107,798
Nissin Kogyo Co., Ltd.		15,200		194,630
Nissui Pharmaceutical Co., Ltd.		5,100		53,332
Nitta Corp.		6,800		200,045
Nitta Gelatin, Inc.		4,500		26,888
Nittan Valve Co., Ltd.		6,300		16,899
Nittetsu Mining Co., Ltd.		2,200		93,560
Nitto Boseki Co., Ltd.		9,800		161,493
Nitto FC Co., Ltd.		4,500		30,145
Nitto Fuji Flour Milling Co., Ltd.		400		20,383
Nitto Kogyo Corp.		9,000		142,876
Nitto Kohki Co., Ltd.		4,100		79,438
Nitto Seiko Co., Ltd.		12,500		60,440
Nittoc Construction Co., Ltd. (e)		11,050		65,278
Nittoku Engineering Co., Ltd.		5,200		94,793
NJS Co., Ltd.		3,300		47,914
Noevir Holdings Co., Ltd.		3,600		155,681
Nohmi Bosai, Ltd.		7,000		116,394
Nojima Corp.		5,000	��	100,132
Nomura Co., Ltd.		12,000		274,673
Noritake Co., Ltd.		4,200		171,979
Noritsu Koki Co., Ltd.		4,000		54,078
Noritz Corp.		11,400		162,740
North Pacific Bank, Ltd.		122,400		325,851
NS Tool Co., Ltd.		1,300		26,738
NS United Kaiun Kaisha, Ltd.		4,100		111,214
NSD Co., Ltd.		10,670		207,149
Nuflare Technology, Inc.		800		36,021
OAK Capital Corp.		15,500		17,909
Oat Agrio Co., Ltd.		200		3,465
Obara Group, Inc.		3,500		124,017
Odelic Co., Ltd.		1,000		34,161
Oenon Holdings, Inc.		21,000		66,179
Ogaki Kyoritsu Bank, Ltd. (The)		12,500		249,349
Ohashi Technica, Inc.		4,600		48,875
Ohsho Food Service Corp.		3,600		236,604

See accompanying notes to financial statements.

BHFTII-25

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Oiles Corp.		8,000	$	129,204
Oita Bank, Ltd. (The)		5,700		173,819
Okabe Co., Ltd.		14,000		111,231
Okada Aiyon Corp.		1,900		24,367
Okamoto Industries, Inc.		3,200		167,718
Okamoto Machine Tool Works, Ltd.		1,400		28,420
Okamura Corp.		21,800		278,549
Okasan Securities Group, Inc.		29,000		127,747
Okaya Electric Industries Co., Ltd.		5,800		18,404
Oki Electric Industry Co., Ltd.		22,700		267,230
Okinawa Cellular Telephone Co.		4,400		144,066
Okinawa Electric Power Co., Inc. (The)		16,883		327,712
OKK Corp.		3,100		21,635
OKUMA Corp.		6,600		313,621
Okumura Corp.		11,400		330,247
Okura Industrial Co., Ltd.		3,000		50,304
Okuwa Co., Ltd.		10,000		101,296
Olympic Group Corp.		4,900		27,600
ONO Sokki Co., Ltd.		4,200		21,208
Onoken Co., Ltd.		6,500		95,244
Onward Holdings Co., Ltd.		49,000		262,021
Ootoya Holdings Co., Ltd.		600		11,913
Open Door, Inc. (a)		1,300		30,176
Optex Group Co., Ltd.		9,400		147,007
Organo Corp.		2,800		66,177
Origin Electric Co., Ltd.		3,400		51,295
Oro Co., Ltd.		100		3,777
Osaka Organic Chemical Industry, Ltd.		5,900		58,630
Osaka Soda Co., Ltd.		5,000		111,625
Osaka Steel Co., Ltd.		5,900		98,264
OSAKA Titanium Technologies Co., Ltd. (e)		4,100		61,811
Osaki Electric Co., Ltd.		11,000		66,882
OSG Corp.		13,300		261,257
OSJB Holdings Corp.		11,600		30,378
Otsuka Kagu, Ltd. (a) (e)		5,500		15,458
OUG Holdings, Inc.		700		15,408
Outsourcing, Inc. (e)		15,500		150,752
Oyo Corp.		7,400		74,543
Pacific Industrial Co., Ltd.		16,700		221,222
Pacific Metals Co., Ltd. (e)		6,100		149,133
Pack Corp. (The)		4,600		127,048
Pal Group Holdings Co., Ltd.		3,800		93,460
Paramount Bed Holdings Co., Ltd.		6,000		248,293
Parco Co., Ltd.		8,100		82,023
Paris Miki Holdings, Inc.		10,600		40,834
Pasco Corp. (a)		1,200		7,759
Pasona Group, Inc.		6,200		64,110
PC Depot Corp.		1,900		7,540
PCI Holdings, Inc.		900		15,855
Penta-Ocean Construction Co., Ltd.		64,600		354,977
Pepper Food Service Co., Ltd. (e)		2,700		70,442
Phil Co., Inc. (a)		500		16,465
PIA Corp.		700		24,106
Pilot Corp.		1,900		91,568
Piolax, Inc.		10,500		208,648
Pioneer Corp. (a) (e)		117,700		68,459
Plenus Co., Ltd.		7,800		134,757
Japan—(Continued)
Poletowin Pitcrew Holdings, Inc.		5,800		49,265
Press Kogyo Co., Ltd.		37,000		181,243
Pressance Corp.		10,400		123,051
Prestige International, Inc.		13,400		145,958
Prima Meat Packers, Ltd.		9,600		172,612
Pro-Ship, Inc.		700		14,562
Pronexus, Inc.		6,700		62,613
Proto Corp.		4,400		56,158
PS Mitsubishi Construction Co., Ltd.		8,800		47,632
Punch Industry Co., Ltd.		2,700		11,952
Qol Co., Ltd.		3,400		51,286
Quick Co., Ltd.		1,600		18,433
Raccoon Co., Ltd.		2,300		14,591
Raito Kogyo Co., Ltd.		16,900		226,640
Rakus Co., Ltd.		2,900		45,348
Rasa Industries, Ltd.		2,600		30,414
Raysum Co., Ltd.		3,000		26,221
RECOMM Co., Ltd.		14,500		22,829
Relia, Inc.		6,600		53,954
Remixpoint, Inc.		6,300		23,212
Renaissance, Inc.		2,800		52,270
RENOVA, Inc. (a)		4,800		34,545
Renown, Inc. (a)		29,200		24,874
Resort Solution Co., Ltd.		400		13,969
Resorttrust, Inc.		14,500		214,067
Retail Partners Co., Ltd.		1,300		13,196
Rheon Automatic Machinery Co., Ltd.		5,000		62,000
Rhythm Watch Co., Ltd.		2,500		43,205
Riberesute Corp.		4,300		30,675
Ricoh Leasing Co., Ltd.		5,600		167,918
Ride On Express Holdings Co., Ltd.		600		7,637
Right On Co., Ltd.		5,900		45,715
Riken Corp.		3,500		160,731
Riken Keiki Co., Ltd.		6,000		111,211
Riken Technos Corp.		15,000		61,904
Riken Vitamin Co., Ltd.		2,700		87,084
Ringer Hut Co., Ltd.		4,900		101,993
Rion Co., Ltd.		2,200		34,727
Riso Kagaku Corp.		9,458		145,110
Riso Kyoiku Co., Ltd.		34,770		145,577
Rock Field Co., Ltd.		6,600		99,142
Rokko Butter Co., Ltd.		3,600		69,542
Roland DG Corp.		3,000		57,895
Rorze Corp.		1,900		23,863
Round One Corp.		22,000		227,409
Royal Holdings Co., Ltd.		8,300		191,420
Rozetta Corp. (a)		200		3,156
RS Technologies Co., Ltd.		700		17,940
Ryobi, Ltd.		9,400		227,341
Ryoden Corp.		4,500		57,759
Ryosan Co., Ltd.		10,800		286,136
Ryoyo Electro Corp.		7,800		109,213
S Foods, Inc.		4,100		153,622
S&B Foods, Inc.		1,200		45,247
S-Pool, Inc.		700		9,580
Sac’s Bar Holdings, Inc.		6,850		69,531
Sagami Rubber Industries Co., Ltd.		1,000		18,072

See accompanying notes to financial statements.

BHFTII-26

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Saibu Gas Co., Ltd.		12,200	$	283,073
Saizeriya Co., Ltd.		9,200		158,028
Sakai Chemical Industry Co., Ltd.		6,000		124,328
Sakai Heavy Industries, Ltd.		1,400		29,118
Sakai Moving Service Co., Ltd.		2,600		141,701
Sakai Ovex Co., Ltd.		1,600		26,759
Sakata INX Corp.		11,800		129,849
Sakura Internet, Inc.		4,400		16,973
Sala Corp.		12,900		69,872
SAMTY Co., Ltd.		2,600		29,792
San Holdings, Inc.		1,400		28,645
San ju San Financial Group, Inc.		7,870		122,501
San-A Co., Ltd.		5,700		216,553
San-Ai Oil Co., Ltd.		20,000		198,502
San-In Godo Bank, Ltd. (The)		59,000		410,278
Sanden Holdings Corp. (a)		8,400		57,313
Sanei Architecture Planning Co., Ltd.		3,500		43,426
Sangetsu Corp.		17,200		310,285
Sanix, Inc. (a)		7,800		13,240
Sanken Electric Co., Ltd.		7,400		137,172
Sanki Engineering Co., Ltd.		17,900		184,354
Sanko Metal Industrial Co., Ltd.		1,000		24,873
Sankyo Frontier Co., Ltd.		1,000		33,048
Sankyo Seiko Co., Ltd.		13,400		50,380
Sankyo Tateyama, Inc.		9,600		102,073
Sanoh Industrial Co., Ltd.		10,100		50,248
Sanshin Electronics Co., Ltd.		8,500		152,463
Sanyo Chemical Industries, Ltd.		4,200		195,084
Sanyo Denki Co., Ltd.		1,800		58,927
Sanyo Electric Railway Co., Ltd.		4,000		82,507
Sanyo Housing Nagoya Co., Ltd.		3,000		25,713
Sanyo Industries, Ltd.		1,300		22,216
Sanyo Shokai, Ltd.		5,100		83,897
Sanyo Special Steel Co., Ltd.		8,600		180,753
Sapporo Holdings, Ltd.		13,200		274,024
Sata Construction Co., Ltd.		2,600		9,175
Sato Holdings Corp.		6,900		162,976
Sato Shoji Corp.		6,500		52,367
Satori Electric Co., Ltd.		5,500		43,403
Sawada Holdings Co., Ltd.		10,300		86,483
Sawai Pharmaceutical Co., Ltd.		2,000		94,792
Saxa Holdings, Inc.		2,400		37,524
SBS Holdings, Inc.		6,900		88,952
Scala, Inc.		2,300		15,685
Scroll Corp.		13,100		46,403
Secom Joshinetsu Co., Ltd.		900		26,231
Seed Co., Ltd.		1,700		19,846
Seika Corp.		4,200		58,403
Seikagaku Corp.		700		7,898
Seikitokyu Kogyo Co., Ltd. (a)		12,500		68,692
Seiko Holdings Corp.		8,800		168,041
Seiren Co., Ltd.		19,100		313,799
Sekisui Jushi Corp.		10,200		178,225
Sekisui Plastics Co., Ltd.		10,300		87,248
Senko Group Holdings Co., Ltd.		31,000		233,976
Senshu Electric Co., Ltd.		2,400		60,594
Senshu Ikeda Holdings, Inc.		84,000		230,526
Japan—(Continued)
Senshukai Co., Ltd. (a)		11,000		26,206
SFP Holdings Co., Ltd.		700		9,936
Shibaura Electronics Co., Ltd.		2,800		88,826
Shibaura Mechatronics Corp.		900		27,970
Shibusawa Warehouse Co., Ltd. (The)		4,200		61,614
Shibuya Corp.		4,800		155,243
Shidax Corp.		9,600		26,301
SHIFT, Inc. (a)		1,300		42,925
Shiga Bank, Ltd. (The)		17,800		415,352
Shikibo, Ltd.		4,700		42,507
Shikoku Bank, Ltd. (The)		14,000		150,228
Shikoku Chemicals Corp.		13,000		121,666
Shima Seiki Manufacturing, Ltd.		4,600		132,153
Shimachu Co., Ltd.		19,600		530,624
Shimane Bank, Ltd. (The)		2,500		15,428
Shimizu Bank, Ltd. (The)		3,400		50,158
Shimojima Co., Ltd.		6,300		56,738
Shin Nippon Air Technologies Co., Ltd.		4,600		74,667
Shin Nippon Biomedical Laboratories, Ltd. (a)		2,500		15,152
Shin-Etsu Polymer Co., Ltd.		16,900		104,257
Shin-Keisei Electric Railway Co., Ltd.		2,900		55,185
Shinagawa Refractories Co., Ltd.		2,000		68,969
Shindengen Electric Manufacturing Co., Ltd.		2,800		96,317
Shinkawa, Ltd. (a)		5,300		18,495
Shinko Electric Industries Co., Ltd.		27,600		174,056
Shinko Plantech Co., Ltd.		16,100		169,736
Shinko Shoji Co., Ltd.		7,700		123,725
Shinko Wire Co., Ltd.		1,200		10,314
Shinmaywa Industries, Ltd.		34,000		417,150
Shinnihon Corp.		10,200		96,479
Shinoken Group Co., Ltd. (e)		7,100		43,561
Shinsho Corp.		1,400		30,936
Shinwa Co., Ltd.		3,900		73,992
Ship Healthcare Holdings, Inc.		9,000		334,095
Shizuki Electric Co., Inc.		8,000		45,863
Shizuoka Gas Co., Ltd.		21,300		164,944
Shobunsha Publications, Inc.		4,800		18,635
Shoei Co., Ltd.		2,600		87,762
Shoei Foods Corp.		3,400		83,081
Shofu, Inc.		3,900		38,432
Shoko Co., Ltd. (a)		1,900		10,779
Showa Aircraft Industry Co., Ltd.		4,000		46,116
Showa Corp.		17,600		206,387
Showa Sangyo Co., Ltd.		6,600		179,597
SIGMAXYZ, Inc.		1,200		8,446
Siix Corp. (e)		9,600		123,703
Sinanen Holdings Co., Ltd.		2,900		63,395
Sinfonia Technology Co., Ltd.		8,400		102,814
Sinko Industries, Ltd.		6,400		86,077
Sintokogio, Ltd.		16,800		136,715
SKY Perfect JSAT Holdings, Inc.		29,800		126,719
SMK Corp.		2,300		45,377
SMS Co., Ltd.		16,100		255,728
Snow Peak, Inc.		900		10,098
SNT Corp.		15,600		49,384
Soda Nikka Co., Ltd.		7,000		32,643
Sodick Co., Ltd.		16,800		106,261

See accompanying notes to financial statements.

BHFTII-27

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Soft99 Corp.		5,100	$	42,489
Softbank Technology Corp.		3,200		51,619
Softbrain Co., Ltd.		3,500		13,866
Softcreate Holdings Corp.		700		8,384
Software Service, Inc.		1,200		88,000
Sogo Medical Holdings Co., Ltd.		4,800		90,614
Solasto Corp.		8,400		84,721
Soliton Systems KK		600		3,846
Sotoh Co., Ltd.		3,100		26,539
Sourcenext Corp. (e)		11,800		59,047
Space Co., Ltd.		5,060		55,636
Space Value Holdings Co., Ltd.		9,000		77,394
Sparx Group Co., Ltd.		35,900		61,007
SPK Corp.		1,700		35,175
SRA Holdings		3,100		73,457
Srg Takamiya Co., Ltd.		5,200		36,073
SRS Holdings Co., Ltd.		2,700		24,346
St. Marc Holdings Co., Ltd.		5,100		113,212
Star Mica Co., Ltd.		2,400		33,333
Star Micronics Co., Ltd.		4,400		59,196
Starts Corp., Inc.		6,300		139,305
Starzen Co., Ltd.		2,500		85,881
Stella Chemifa Corp.		3,600		83,368
Step Co., Ltd.		4,100		48,414
Strike Co., Ltd.		1,300		19,053
Studio Alice Co., Ltd.		2,900		60,928
Subaru Enterprise Co., Ltd.		100		4,864
Sugimoto & Co., Ltd.		3,800		60,676
Sumida Corp.		6,300		71,566
Suminoe Textile Co., Ltd.		2,300		50,389
Sumitomo Densetsu Co., Ltd.		5,400		88,965
Sumitomo Mitsui Construction Co., Ltd.		52,060		315,546
Sumitomo Osaka Cement Co., Ltd.		12,500		512,419
Sumitomo Precision Products Co., Ltd.		1,200		32,364
Sumitomo Riko Co., Ltd.		15,300		126,492
Sumitomo Seika Chemicals Co., Ltd.		3,200		123,714
Sumitomo Warehouse Co., Ltd. (The)		26,500		324,380
Sun Frontier Fudousan Co., Ltd.		7,600		74,262
Sun-Wa Technos Corp.		3,900		36,367
Suncall Corp.		8,300		43,634
Sushiro Global Holdings, Ltd.		2,900		157,806
SWCC Showa Holdings Co., Ltd.		7,600		42,094
Systena Corp.		20,000		230,427
Syuppin Co., Ltd.		2,600		16,947
T Hasegawa Co., Ltd. (e)		8,400		118,849
T RAD Co., Ltd.		2,900		60,655
T&K Toka Co., Ltd.		8,600		79,278
T-Gaia Corp.		6,500		122,418
Tachi-S Co., Ltd.		10,300		134,237
Tachibana Eletech Co., Ltd.		5,640		79,375
Tadano, Ltd.		22,800		204,507
Taihei Dengyo Kaisha, Ltd.		6,000		134,605
Taiheiyo Kouhatsu, Inc.		2,100		14,450
Taiho Kogyo Co., Ltd.		6,400		56,082
Taikisha, Ltd.		9,100		240,158
Taiko Bank, Ltd. (The)		3,100		51,026
Taisei Lamick Co., Ltd.		2,200		58,375
Japan—(Continued)
Taiyo Holdings Co., Ltd.		5,300		148,607
Takachiho Koheki Co., Ltd.		400		3,499
Takamatsu Construction Group Co., Ltd.		5,400		136,306
Takano Co., Ltd.		4,600		34,239
Takaoka Toko Co., Ltd.		4,365		54,458
Takara Leben Co., Ltd.		28,600		78,179
Takara Printing Co., Ltd.		1,300		19,495
Takara Standard Co., Ltd.		14,400		217,180
Takasago International Corp.		5,400		166,636
Takasago Thermal Engineering Co., Ltd.		16,800		271,705
Takashima & Co., Ltd.		2,500		39,141
Take And Give Needs Co., Ltd.		4,010		62,245
Takeei Corp.		8,200		47,517
Takeuchi Manufacturing Co., Ltd.		10,000		152,536
Takihyo Co., Ltd.		2,000		30,933
Takisawa Machine Tool Co., Ltd.		2,200		27,210
Takuma Co., Ltd.		25,000		311,463
Tama Home Co., Ltd.		5,900		54,479
Tamron Co., Ltd.		6,000		85,468
Tamura Corp.		26,000		124,917
Tanseisha Co., Ltd.		11,750		117,216
Tateru, Inc. (e)		3,600		9,782
Tatsuta Electric Wire and Cable Co., Ltd.		17,000		74,879
Tayca Corp.		6,000		89,158
Tazmo Co., Ltd.		900		5,414
TBK Co., Ltd.		8,000		29,426
TDC Soft, Inc.		2,400		17,717
Teac Corp. (a)		4,000		6,768
TechMatrix Corp.		2,900		43,999
TECHNO ASSOCIE Co., Ltd.		300		3,141
Techno Medica Co., Ltd.		2,400		45,647
Techno Ryowa, Ltd.		4,800		37,365
TechnoPro Holdings, Inc.		3,400		138,881
Tecnos Japan, Inc.		2,000		12,454
Teikoku Electric Manufacturing Co., Ltd.		6,800		80,367
TeikokuSen-I Co., Ltd.		6,900		135,103
Teikoku Tsushin Kogyo Co., Ltd.		3,000		31,705
Tenma Corp.		6,200		103,394
Tenpos Holdings Co., Ltd.		700		12,387
Teraoka Seisakusho Co., Ltd.		200		927
Terilogy Co., Ltd. (a)		1,600		15,585
Tigers Polymer Corp.		2,200		12,263
TKC Corp.		6,700		236,510
Toa Corp.		9,600		86,653
Toa Corp.		5,800		69,008
Toa Oil Co., Ltd.		3,200		44,785
TOA ROAD Corp.		1,800		50,743
Toabo Corp. (a)		3,400		14,289
Toagosei Co., Ltd.		37,000		411,059
Tobishima Corp.		5,560		70,991
TOC Co., Ltd.		15,800		104,846
Tocalo Co., Ltd.		19,200		147,191
Tochigi Bank, Ltd. (The)		38,200		86,751
Toda Kogyo Corp.		1,100		22,118
Toei Animation Co., Ltd.		4,300		159,226
Toei Co., Ltd.		2,500		295,469
Toell Co., Ltd.		1,400		8,435

See accompanying notes to financial statements.

BHFTII-28

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Toenec Corp.		3,200	$	83,884
Toho Bank, Ltd. (The)		83,000		235,461
Toho Co., Ltd.		2,700		53,495
Toho Holdings Co., Ltd.		12,600		306,769
Toho Titanium Co., Ltd.		4,500		41,701
Toho Zinc Co., Ltd.		5,000		151,817
Tohoku Bank, Ltd. (The)		4,700		48,074
Tohokushinsha Film Corp.		4,800		25,588
Tohto Suisan Co., Ltd.		1,400		25,521
Tokai Corp.		7,800		200,000
TOKAI Holdings Corp.		23,700		189,117
Tokai Lease Co., Ltd.		1,600		25,121
Tokai Rika Co., Ltd.		8,800		144,877
Tokai Tokyo Financial Holdings, Inc.		45,600		196,558
Token Corp.		2,460		144,871
Tokushu Tokai Paper Co., Ltd.		3,300		123,155
Tokuyama Corp.		12,600		276,189
Tokyo Base Co., Ltd. (a)		2,200		10,749
Tokyo Dome Corp.		31,000		262,812
Tokyo Electron Device, Ltd.		2,400		37,398
Tokyo Energy & Systems, Inc.		8,000		70,661
Tokyo Individualized Educational Institute, Inc.		1,400		13,075
Tokyo Keiki, Inc.		4,200		35,371
Tokyo Ohka Kogyo Co., Ltd.		13,100		348,274
Tokyo Rakutenchi Co., Ltd.		1,300		56,624
Tokyo Rope Manufacturing Co., Ltd.		4,600		39,201
Tokyo Sangyo Co., Ltd.		12,000		54,342
Tokyo Seimitsu Co., Ltd.		13,800		351,578
Tokyo Steel Manufacturing Co., Ltd.		36,800		297,058
Tokyo Tekko Co., Ltd.		3,400		34,683
Tokyo Theatres Co., Inc.		2,900		32,147
Tokyo TY Financial Group, Inc.		9,724		151,242
Tokyotokeiba Co., Ltd. (e)		3,100		76,484
Tokyu Construction Co., Ltd.		2,900		26,245
Tokyu Recreation Co., Ltd.		1,200		51,233
Toli Corp.		20,000		45,572
Tomato Bank, Ltd.		4,200		41,893
Tomen Devices Corp.		1,500		31,083
Tomoe Corp.		12,500		39,262
Tomoe Engineering Co., Ltd.		2,100		46,255
Tomoegawa Co., Ltd.		2,400		21,468
Tomoku Co., Ltd.		5,400		82,837
TOMONY Holdings, Inc.		56,900		209,830
Tomy Co., Ltd.		22,400		222,637
Tonami Holdings Co., Ltd.		2,200		112,825
Topcon Corp.		19,200		251,910
Toppan Forms Co., Ltd.		19,800		154,848
Topre Corp.		11,900		235,256
Topy Industries, Ltd.		6,800		138,829
Toridolll Holdings Corp. (e)		6,900		114,416
Torigoe Co., Ltd. (The)		7,100		51,682
Torii Pharmaceutical Co., Ltd.		3,600		79,695
Torikizoku Co., Ltd.		900		14,759
Torishima Pump Manufacturing Co., Ltd.		7,700		64,763
Tosei Corp.		13,200		99,669
Toshiba Machine Co., Ltd. (e)		8,400		149,391
Toshiba Plant Systems & Services Corp.		9,300		172,142
Japan—(Continued)
Toshiba TEC Corp.		3,600		83,679
Tosho Co., Ltd.		4,800		148,819
Tosho Printing Co., Ltd.		7,000		43,002
Totetsu Kogyo Co., Ltd.		8,400		230,829
Tottori Bank, Ltd. (The)		3,700		47,671
Toukei Computer Co., Ltd.		1,400		39,440
Tow Co., Ltd.		3,600		23,254
Towa Bank, Ltd. (The)		11,500		77,600
Towa Corp.		8,000		42,106
Towa Pharmaceutical Co., Ltd.		2,800		197,138
Toyo Construction Co., Ltd.		25,499		87,227
Toyo Corp.		9,600		70,977
Toyo Denki Seizo KK		3,200		35,297
Toyo Engineering Corp. (a) (e)		7,600		43,840
Toyo Ink SC Holdings Co., Ltd. (e)		15,200		336,816
Toyo Kanetsu KK		3,800		77,418
Toyo Machinery & Metal Co., Ltd.		6,000		29,288
Toyo Securities Co., Ltd.		23,000		35,881
Toyo Sugar Refining Co., Ltd.		900		8,484
Toyo Tanso Co., Ltd. (e)		4,600		90,601
Toyo Tire & Rubber Co., Ltd.		12,100		150,501
Toyo Wharf & Warehouse Co., Ltd.		2,500		32,513
Toyobo Co., Ltd.		33,200		455,530
TPR Co., Ltd.		7,300		147,363
Trancom Co., Ltd.		2,300		118,839
Transaction Co., Ltd.		1,400		8,125
Tri Chemical Laboratories, Inc.		1,000		35,372
Trusco Nakayama Corp.		10,900		285,716
Trust Tech, Inc.		3,000		74,762
TSI Holdings Co., Ltd.		28,205		182,478
Tsubaki Nakashima Co., Ltd.		3,700		54,053
Tsubakimoto Chain Co.		9,000		293,722
Tsubakimoto Kogyo Co., Ltd.		1,600		44,814
Tsudakoma Corp.		1,600		24,942
Tsugami Corp.		17,000		98,361
Tsukada Global Holdings, Inc.		7,200		38,015
Tsukamoto Corp. Co., Ltd.		2,100		19,107
Tsukishima Kikai Co., Ltd.		8,600		99,693
Tsukuba Bank, Ltd.		34,500		68,035
Tsukui Corp.		18,800		141,876
Tsurumi Manufacturing Co., Ltd.		6,100		106,744
Tsutsumi Jewelry Co., Ltd.		3,200		53,803
TV Asahi Holdings Corp.		600		10,701
TV Tokyo Holdings Corp.		3,700		78,866
TYK Corp.		6,000		20,066
U-Shin, Ltd. (a)		8,400		74,397
UACJ Corp.		10,685		207,861
Uchida Yoko Co., Ltd.		4,200		100,538
Ueki Corp.		1,100		22,776
UKC Holdings Corp.		5,000		83,075
Ulvac, Inc.		8,700		250,058
UMC Electronics Co., Ltd.		700		11,228
Umenohana Co., Ltd.		600		13,061
Uniden Holdings Corp.		2,500		44,677
Union Tool Co.		3,400		90,162
Unipres Corp.		13,900		234,582
United Arrows, Ltd.		6,000		191,691

See accompanying notes to financial statements.

BHFTII-29

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares			Value
Japan—(Continued)
United Super Markets Holdings, Inc.		20,700		$	226,061
UNITED, Inc.		2,200			29,176
Unitika, Ltd. (a)		15,600			65,544
Unizo Holdings Co., Ltd.		6,000			112,201
Usen-Next Holdings Co., Ltd. (a)		2,700			22,605
Ushio, Inc.		39,000			412,438
UT Group Co., Ltd. (a)		7,600			131,540
Utoc Corp.		5,100			22,045
Uzabase, Inc. (a)		1,200			17,966
V Technology Co., Ltd.		1,000			114,405
V-Cube, Inc. (a)		2,100			7,053
Valor Holdings Co., Ltd.		11,800			285,795
ValueCommerce Co., Ltd.		3,200			35,278
Vector, Inc.		4,800			63,234
VeriServe Corp.		500			21,227
VIA Holdings, Inc. (a)		1,600			9,723
Village Vanguard Co., Ltd.		2,300			19,495
VINX Corp.		1,000			11,910
Vision, Inc. (a)		1,400			47,890
Vital KSK Holdings, Inc.		14,200			145,459
Vitec Holdings Co., Ltd.		3,700			60,769
Voyage Group, Inc.		1,500			14,368
VT Holdings Co., Ltd.		24,300			91,162
Wacoal Holdings Corp.		13,400			346,011
Wacom Co., Ltd.		23,300			97,504
Wakachiku Construction Co., Ltd.		4,600			64,985
Wakamoto Pharmaceutical Co., Ltd.		9,000			23,283
Wakita & Co., Ltd.		15,300	��		154,751
Warabeya Nichiyo Holdings Co., Ltd.		5,000			88,026
Waseda Academy Co., Ltd.		700			12,425
Watahan & Co., Ltd.		1,600			32,705
WATAMI Co., Ltd.		7,600			90,507
WDB Holdings Co., Ltd.		1,700			36,520
Weathernews, Inc.		2,100			54,020
West Holdings Corp.		7,200			82,641
Will Group, Inc.		2,200			16,828
WIN-Partners Co., Ltd.		2,500			21,738
WirelessGate, Inc.		1,000			3,627
Wood One Co., Ltd.		2,600			24,600
World Holdings Co., Ltd.		1,200			23,234
Wowow, Inc.		2,200			60,413
Xebio Holdings Co., Ltd.		8,700			99,740
Y.A.C. Holdings Co., Ltd.		3,900			20,836
YA-MAN, Ltd.		4,400			55,712
Yachiyo Industry Co., Ltd.		3,900			23,581
Yahagi Construction Co., Ltd.		10,900			69,499
Yaizu Suisankagaku Industry Co., Ltd.		4,400			40,539
Yakuodo Co., Ltd.		1,600			37,742
YAMABIKO Corp.		12,800			117,992
YAMADA Consulting Group Co., Ltd.		1,600			24,353
Yamagata Bank, Ltd. (The)		10,400			198,935
Yamaichi Electronics Co., Ltd.		8,200			86,804
Yamanashi Chuo Bank, Ltd. (The)		11,800			151,041
Yamatane Corp.		3,400			51,857
Yamato Corp.		6,600			29,341
Yamato International, Inc.		6,700			24,748
Yamato Kogyo Co., Ltd.		10,500			244,717
Japan—(Continued)
Yamaya Corp.		1,150			23,135
Yamazawa Co., Ltd.		1,000			15,891
Yamazen Corp.		19,500			181,539
Yaoko Co., Ltd.		3,700			203,228
Yashima Denki Co., Ltd.		7,500			50,203
Yasuda Logistics Corp.		7,400			52,869
Yasunaga Corp.		1,700			20,633
Yellow Hat, Ltd.		5,800			139,247
Yodogawa Steel Works, Ltd.		7,600			151,882
Yokogawa Bridge Holdings Corp.		12,800			192,251
Yokohama Reito Co., Ltd.		16,800			139,322
Yokowo Co., Ltd.		5,200			67,281
Yomeishu Seizo Co., Ltd.		3,000			61,104
Yomiuri Land Co., Ltd.		1,300			44,908
Yondenko Corp.		1,600			37,830
Yondoshi Holdings, Inc.		4,600			91,443
Yorozu Corp.		7,900			98,711
Yoshinoya Holdings Co., Ltd.		4,900			81,025
Yossix Co., Ltd.		400			10,211
Yuasa Funashoku Co., Ltd.		1,300			41,939
Yuasa Trading Co., Ltd.		5,800			165,469
Yuken Kogyo Co., Ltd.		1,700			28,869
Yuki Gosei Kogyo Co., Ltd.		6,000			10,519
Yume No. Machi Souzou Iinkai Co., Ltd.		3,500			41,252
Yumeshin Holdings Co., Ltd.		10,100			72,389
Yurtec Corp.		12,000			92,765
Yushiro Chemical Industry Co., Ltd.		3,700			40,009
Yutaka Giken Co., Ltd.		600			9,774
Zappallas, Inc. (a)		4,900			16,096
Zenrin Co., Ltd.		10,950			230,905
ZIGExN Co., Ltd. (a)		8,400			39,194
Zojirushi Corp.		9,800			86,642
Zuiko Corp.		1,000			23,564
Zuken, Inc.		5,400			73,944
					138,564,896
Jersey, Channel Islands—0.1%
Centamin plc		342,133			476,928
Jordan—0.1%
Hikma Pharmaceuticals plc		21,469			466,759
Kazakhstan—0.1%
KAZ Minerals plc		42,164			285,960
Liechtenstein—0.1%
Liechtensteinische Landesbank AG		2,973			194,017
VP Bank AG		803			115,492
					309,509
Luxembourg—0.1%
APERAM S.A.		21,182			556,155
L’Occitane International S.A.		68,750			124,985
					681,140

See accompanying notes to financial statements.

BHFTII-30

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Macau—0.0%
Macau Legend Development, Ltd.		359,000	$	62,166
Malaysia—0.0%
Nam Cheong, Ltd. (a)		321,000		1,412
Malta—0.1%
Kindred Group plc		49,604		457,928
Monaco—0.1%
Endeavour Mining Corp. (a) (e)		16,215		265,341
Netherlands—2.9%
Aalberts Industries NV		34,547		1,143,800
Accell Group		11,127		240,219
Altice Europe NV - Class A (a) (e)		57,865		111,718
AMG Advanced Metallurgical Group NV		11,371		363,833
Amsterdam Commodities NV		6,535		130,320
Arcadis NV (e)		35,066		426,283
Argenx SE (a)		4,113		397,780
ASM International NV		19,662		809,246
Atrium European Real Estate, Ltd. (a)		66,764		246,846
Basic-Fit NV (a)		6,680		198,039
BE Semiconductor Industries NV (e)		37,120		779,257
Beter Bed Holding NV		5,373		22,068
BinckBank NV		28,201		196,757
Boskalis Westminster		23,702		586,699
Brack Capital Properties NV (a)		716		68,374
Brunel International NV		9,034		112,420
Corbion NV		20,382		570,108
Euronext NV		16,910		971,157
Flow Traders		9,083		290,119
ForFarmers NV		4,418		40,638
Fugro NV (a) (e)		22,630		194,312
Funcom NV (a)		17,843		24,723
Gemalto NV (a)		19,133		1,110,351
GrandVision NV		5,364		117,614
Heijmans NV (a)		11,179		101,951
Hunter Douglas NV		2,423		161,112
IMCD Group NV		10,589		676,238
Intertrust NV		14,607		245,268
KAS Bank NV		6,580		44,418
Kendrion NV		4,048		96,747
Koninklijke BAM Groep NV (e)		112,237		321,005
Koninklijke Vopak NV		13,904		629,857
Lucas Bols B.V. (a) (d)		1,325		23,214
Nederland Apparatenfabriek		2,241		105,758
New World Resources plc - A Shares (a) (b)		11,898		7
OCI NV (a) (e)		16,061		326,004
Ordina NV		44,115		71,402
PostNL NV		180,576		411,241
Rhi Magnesita NV (d) (e)		6,294		311,126
SBM Offshore NV		72,035		1,066,453
Shop Apotheke Europe NV (a)		2,106		91,073
SIF Holding NV (e)		1,259		16,742
Signify NV		23,840		559,588
Sligro Food Group NV		10,629		423,374
SNS REAAL NV (a) (b) (c)		105,329		0
Netherlands—(Continued)
Takeaway.com NV (a)		2,305		154,916
TKH Group NV		13,932		650,047
TomTom NV (a)		51,405		462,865
Van Lanschot Kempen NV		2,558		57,905
Wessanen (e)		31,675		288,950
				16,449,942
New Zealand—0.8%
Abano Healthcare Group, Ltd.		880		3,818
Air New Zealand, Ltd.		109,511		228,058
Briscoe Group, Ltd.		13,123		29,770
Chorus, Ltd.		129,598		421,368
Ebos Group, Ltd.		22,764		306,974
Eroad, Ltd. (a)		4,808		8,113
Freightways, Ltd.		38,693		191,032
Genesis Energy, Ltd.		71,444		124,885
Gentrack Group, Ltd.		7,810		26,379
Hallenstein Glasson Holdings, Ltd.		19,012		53,361
Heartland Group Holdings, Ltd.		72,313		66,980
Infratil, Ltd.		173,171		423,811
Investore Property, Ltd.		15,456		15,856
Kathmandu Holdings, Ltd.		24,348		44,649
Mainfreight, Ltd.		18,914		390,284
Methven, Ltd.		19,898		20,572
Metlifecare, Ltd.		34,148		123,186
Metro Performance Glass, Ltd.		8,816		3,308
Michael Hill International, Ltd.		82,929		36,111
New Zealand Refining Co., Ltd. (The)		27,432		43,307
NZME, Ltd.		71,247		23,327
NZX, Ltd.		83,876		56,817
Pacific Edge, Ltd. (a)		17,353		3,941
PGG Wrightson, Ltd.		58,545		20,037
Port of Tauranga, Ltd.		40,648		136,508
Pushpay Holdings, Ltd. (a)		3,934		8,332
Restaurant Brands New Zealand, Ltd.		33,397		186,565
Rubicon, Ltd. (a)		9,922		1,395
Sanford, Ltd.		314		1,390
Scales Corp., Ltd.		16,784		50,629
Skellerup Holdings, Ltd.		39,167		53,164
SKY Network Television, Ltd.		114,579		142,031
SKYCITY Entertainment Group, Ltd.		173,489		412,747
Summerset Group Holdings, Ltd.		32,970		141,133
Synlait Milk, Ltd. (a)		8,918		53,517
Tourism Holdings, Ltd.		21,653		74,913
TOWER, Ltd. (a)		59,836		29,922
Trade Me Group, Ltd.		106,241		453,819
Trustpower, Ltd.		13,980		57,677
Vector, Ltd.		15,347		34,320
Warehouse Group, Ltd. (The)		39,693		54,618
Z Energy, Ltd.		25,432		93,489
				4,652,113
Norway—0.9%
ABG Sundal Collier Holding ASA		134,443		70,740
AF Gruppen ASA		1,628		24,907
Akastor ASA (a)		47,184		70,947

See accompanying notes to financial statements.

BHFTII-31

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Norway—(Continued)
Aker Solutions ASA (a)		37,475	$	172,452
American Shipping Co. ASA (a)		19,821		76,179
Archer, Ltd. (a)		19,287		9,616
Atea ASA (a)		19,449		250,185
Austevoll Seafood ASA		22,546		278,189
Avance Gas Holding, Ltd. (a)		14,826		21,377
Axactor SE (a)		33,599		72,912
B2Holding ASA		20,790		29,354
Bionor Pharma ASA		3,359		14,931
Bonheur ASA		10,311		111,766
Borregaard ASA		26,596		230,271
BW Offshore, Ltd. (a)		33,722		124,726
Data Respons ASA		8,529		22,130
DNO ASA		152,532		222,436
DOF ASA (a)		47,311		17,559
Europris ASA (a)		8,613		22,945
Frontline, Ltd. (a)		24,306		137,181
Grieg Seafood ASA		11,731		137,926
Hexagon Composites ASA		28,187		79,453
Hoegh LNG Holdings, Ltd.		13,626		60,046
IDEX Corp. (a) (e)		53,185		18,801
Itera ASA		17,553		17,033
Kongsberg Automotive ASA (a)		176,177		155,348
Kongsberg Gruppen ASA		8,787		119,403
Kvaerner ASA (a)		60,872		84,456
Magnora ASA		16,466		12,346
NEL ASA (a)		221,285		117,791
Next Biometrics Group (a)		1,748		5,636
Nordic Nanovector ASA (a)		11,170		65,227
Nordic Semiconductor ASA (a) (e)		36,041		120,265
Norway Royal Salmon ASA		3,880		80,280
Norwegian Air Shuttle ASA (a)		8,756		174,221
Norwegian Finans Holding ASA (a)		19,332		150,558
Norwegian Property ASA		46,727		57,244
Ocean Yield ASA		12,183		83,185
Odfjell Drilling, Ltd. (a)		15,318		36,838
Odfjell SE - A Shares		1,949		6,644
Olav Thon Eiendomsselskap ASA		1,135		18,394
Otello Corp. ASA (a)		21,316		32,613
Panoro Energy ASA (a) (e)		16,444		22,750
PetroleumGeo-Services ASA (a)		73,446		100,803
PhotoCure ASA (a) (e)		5,477		30,373
ProSafe SE (a)		16,437		25,344
Protector Forsikring ASA (a)		13,480		74,717
Q-Free ASA (a)		24,256		21,560
Sbanken ASA		17,156		148,735
Scatec Solar ASA		26,893		228,384
Selvaag Bolig ASA		7,900		36,932
Solstad Offshore ASA (a) (e)		53,910		10,814
Spectrum ASA		10,674		45,239
Stolt-Nielsen, Ltd.		7,397		87,334
Treasure ASA		21,003		28,131
Veidekke ASA		28,524		320,341
Wilh Wilhelmsen Holding ASA - Class A		4,777		88,992
XXL ASA		17,225		52,321
				4,937,281
Peru—0.0%
Hochschild Mining plc		74,658		148,006
Philippines—0.0%
Del Monte Pacific, Ltd. (a)		77,636		7,113
Portugal—0.4%
Altri SGPS S.A.		27,747		183,836
Banco Comercial Portugues S.A. - Class R (a)		2,143,248		561,508
Banco Espirito Santo S.A. (a) (b) (c)		89,078		0
CTT-Correios de Portugal S.A.		34,069		114,756
Mota-Engil SGPS S.A. (a) (e)		40,942		75,130
Navigator Co. S.A. (The)		71,289		294,051
NOS SGPS S.A.		73,113		442,516
Novabase SGPS S.A.		7,827		18,128
REN - Redes Energeticas Nacionais SGPS S.A.		122,322		340,933
Semapa-Sociedade de Investimento e Gestao		4,163		62,521
Sonae SGPS S.A.		280,308		259,803
Teixeira Duarte S.A. (a)		59,382		9,175
				2,362,357
Russia—0.0%
Evraz plc		13,430		82,262
Petropavlovsk plc (a)		192,556		15,506
				97,768
Singapore—1.1%
Abterra, Ltd. (a) (b) (d)		51,720		1,112
Accordia Golf Trust		74,500		27,612
AEM Holdings, Ltd.		46,900		28,073
Ascendas India Trust		171,500		135,941
ASL Marine Holdings, Ltd. (a)		52,500		2,273
Avarga, Ltd.		46,000		6,513
Baker Technology, Ltd. (a)		33,200		10,360
Banyan Tree Holdings, Ltd.		97,700		40,926
Best World International, Ltd.		80,000		154,525
Bonvests Holdings, Ltd.		18,000		16,508
Boustead Projects, Ltd.		24,607		14,789
Boustead Singapore, Ltd.		82,025		48,105
BreadTalk Group, Ltd.		54,200		32,609
Bukit Sembawang Estates, Ltd.		69,100		286,443
BW LPG, Ltd. (a)		25,142		75,710
Centurion Corp., Ltd.		38,000		11,547
China Aviation Oil Singapore Corp., Ltd.		94,800		73,796
Chip Eng Seng Corp., Ltd.		157,000		75,706
Chuan Hup Holdings, Ltd.		125,000		25,221
CITIC Envirotech, Ltd.		207,500		57,904
CNQC International Holdings, Ltd.		82,500		18,234
COSCO Shipping International Singapore Co., Ltd. (a)		272,500		65,560
Creative Technology, Ltd. (a)		16,300		45,406
CSE Global, Ltd.		197,000		54,631
CW Group Holdings, Ltd. (b) (c) (d)		106,000		2,346
Delfi, Ltd.		66,000		63,417
Dyna-Mac Holdings, Ltd. (a)		98,000		8,148
Elec & Eltek International Co., Ltd.		23,000		29,900
Ezion Holdings, Ltd. (a)		753,729		25,489
Ezra Holdings, Ltd. (a) (b) (c) (d)		1,000,703		7,599

See accompanying notes to financial statements.

BHFTII-32

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Singapore—(Continued)
Far East Orchard, Ltd.		74,044	$	65,188
First Resources, Ltd.		86,700		97,719
Food Empire Holdings, Ltd.		54,000		20,301
Fragrance Group, Ltd.		752,800		74,880
Gallant Venture, Ltd. (a)		126,000		12,283
Geo Energy Resources, Ltd.		155,000		19,050
GK Goh Holdings, Ltd.		12,000		7,968
GL, Ltd.		188,000		101,415
Golden Agri-Resources, Ltd.		988,100		177,119
Golden Energy & Resources, Ltd.		69,000		11,134
GuocoLand, Ltd.		35,500		46,747
Halcyon Agri Corp., Ltd.		188,713		53,946
Hanwell Holdings, Ltd.		19,000		2,411
Haw Par Corp., Ltd.		19,600		172,691
Hi-P International, Ltd.		50,200		32,293
Hiap Hoe, Ltd.		58,000		37,023
Ho Bee Land, Ltd.		67,200		116,842
Hong Fok Corp., Ltd.		146,740		73,095
Hong Leong Asia, Ltd. (a)		82,000		29,366
Hong Leong Finance, Ltd.		13,300		24,754
Hotel Grand Central, Ltd.		25,900		23,734
Hour Glass, Ltd. (The)		129,000		59,076
Hwa Hong Corp., Ltd.		138,000		29,363
Hyflux, Ltd. (a) (b) (c) (d)		179,500		3,051
iFAST Corp., Ltd.		25,500		20,016
IGG, Inc.		287,000		389,626
Indofood Agri Resources, Ltd.		152,000		21,226
Japfa, Ltd.		89,700		47,837
k1 Ventures, Ltd. (b) (c)		80,800		368
Kenon Holdings, Ltd.		2,312		34,713
Keppel Infrastructure Trust		549,659		195,139
Keppel Telecommunications & Transportation, Ltd.		44,000		60,047
Koh Brothers Group, Ltd.		97,000		15,301
KSH Holdings, Ltd.		25,700		9,442
Lian Beng Group, Ltd.		116,900		39,718
Low Keng Huat Singapore, Ltd.		122,600		42,277
Lum Chang Holdings, Ltd.		115,000		27,818
M1, Ltd.		89,500		137,143
Metro Holdings, Ltd.		141,600		104,848
Mewah International, Inc.		110,000		17,756
Midas Holdings, Ltd. (a) (b) (c) (d)		452,000		11,939
mm2 Asia, Ltd. (a)		76,600		17,731
NSL, Ltd.		15,000		12,326
Overseas Union Enterprise, Ltd.		119,200		124,950
Oxley Holdings, Ltd.		142,164		30,267
Pan-United Corp., Ltd.		53,750		9,460
Penguin International, Ltd.		64,333		14,130
Q&M Dental Group Singapore, Ltd.		41,800		15,332
QAF, Ltd.		74,167		31,797
Raffles Education Corp., Ltd. (a)		500,206		41,624
Raffles Medical Group, Ltd.		151,385		121,815
RHT Health Trust		84,400		45,214
Rickmers Maritime (a) (b) (c)		110,000		0
Riverstone Holdings, Ltd.		59,300		49,552
Roxy-Pacific Holdings, Ltd.		94,325		26,910
SBS Transit, Ltd.		40,500		79,629
Sembcorp Marine, Ltd.		77,300		86,882
Singapore—(Continued)
Sheng Siong Group, Ltd.		133,900		104,168
SHS Holdings, Ltd.		47,000		6,483
SIA Engineering Co., Ltd.		51,000		84,975
SIIC Environment Holdings, Ltd.		167,400		33,771
Sinarmas Land, Ltd.		618,500		113,410
Sing Holdings, Ltd.		82,000		23,056
Singapore Post, Ltd.		314,800		210,790
Singapore Reinsurance Corp., Ltd.		1,000		209
Stamford Land Corp., Ltd.		278,000		99,887
StarHub, Ltd.		107,000		137,001
Sunningdale Tech, Ltd.		41,100		43,165
Swiber Holdings, Ltd. (a) (b) (c) (d)		117,749		1,762
Tuan Sing Holdings, Ltd.		169,000		44,435
UMS Holdings, Ltd.		116,250		48,156
United Engineers, Ltd.		138,000		256,201
United Industrial Corp., Ltd.		13,600		27,249
United Overseas Insurance, Ltd.		4,000		19,516
UOB-Kay Hian Holdings, Ltd.		136,495		116,951
Vibrant Group, Ltd. (a)		47,600		4,994
Vicom, Ltd.		2,000		8,805
Wee Hur Holdings, Ltd.		85,000		13,037
Wheelock Properties Singapore, Ltd. (b) (d)		66,800		102,924
Wing Tai Holdings, Ltd.		159,621		225,685
XP Power, Ltd.		4,116		110,386
Yeo Hiap Seng, Ltd.		19,712		12,627
Yongnam Holdings, Ltd. (a)		241,875		33,566
				6,503,894
South Africa—0.0%
Caledonia Mining Corp. plc		1,300		6,704
Petra Diamonds, Ltd. (a)		279,686		133,666
				140,370
Spain—2.6%
Acciona S.A.		7,805		659,057
Acerinox S.A.		70,013		694,893
Alantra Partners S.A.		4,852		77,020
Almirall S.A.		20,705		315,342
Amper S.A. (a) (e)		224,339		60,866
Applus Services S.A.		33,014		365,310
Atresmedia Corp. de Medios de Comunicacion S.A.		21,362		106,176
Azkoyen S.A.		1,608		12,037
Baron de Ley (a)		1,039		129,743
Bolsas y Mercados Espanoles SHMSF S.A.		27,936		777,004
Caja de Ahorros del Mediterraneo (a) (b) (c) (d)		14,621		0
Cellnex Telecom S.A. (a)		33,924		866,593
Cia de Distribucion Integral Logista Holdings S.A.		9,084		227,054
Cie Automotive S.A.		17,266		424,350
Construcciones y Auxiliar de Ferrocarriles S.A.		5,880		242,989
Distribuidora Internacional de Alimentacion S.A. (e)		184,598		96,959
Duro Felguera S.A. (a) (e)		925,200		12,122
Ebro Foods S.A.		25,801		514,471
eDreams ODIGEO S.A. (a)		14,588		39,703
Elecnor S.A.		11,262		169,986
Enagas S.A.		50,570		1,365,521
Ence Energia y Celulosa S.A		61,968		389,299

See accompanying notes to financial statements.

BHFTII-33

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Spain—(Continued)
Ercros S.A. (e)		60,314	$	213,486
Euskaltel S.A.		9,150		73,299
Faes Farma S.A.		131,897		446,810
Fluidra S.A. (a)		16,366		183,607
Fomento de Construcciones y Contratas S.A. (a)		4,419		59,156
Global Dominion Access S.A. (a)		22,896		112,494
Grupo Catalana Occidente S.A.		20,412		761,540
Grupo Empresarial San Jose S.A. (a)		8,320		43,744
Grupo Ezentis S.A. (a) (e)		78,251		42,371
Iberpapel Gestion S.A.		1,128		43,272
Indra Sistemas S.A. (a)		42,149		397,294
Laboratorios Farmaceuticos Rovi S.A.		3,511		70,115
Liberbank S.A. (a)		273,963		136,675
Masmovil Ibercom S.A. (a)		2,894		64,449
Mediaset Espana Comunicacion S.A.		49,361		311,395
Melia Hotels International S.A.		24,250		228,166
Miquel y Costas & Miquel S.A.		11,154		215,907
Obrascon Huarte Lain S.A. (e)		35,775		26,777
Papeles y Cartones de Europa S.A.		22,293		428,583
Parques Reunidos Servicios Centrales S.A. Unipersonal		153		1,888
Pharma Mar S.A. (a)		72,263		89,896
Prim S.A.		3,013		36,108
Promotora de Informaciones S.A. - Class A (a)		87,762		175,924
Prosegur Cia de Seguridad S.A.		54,905		278,208
Quabit Inmobiliaria S.A. (a)		21,835		32,362
Realia Business S.A. (a)		143,011		148,989
Sacyr S.A. (e)		115,740		229,032
Solaria Energia y Medio Ambiente S.A. (a)		19,439		87,374
Talgo S.A. (a)		15,339		93,822
Tecnicas Reunidas S.A. (e)		11,115		271,170
Telepizza Group S.A.		5,237		35,322
Tubacex S.A. (a)		28,250		80,885
Tubos Reunidos S.A. (a)		21,752		3,534
Vidrala S.A.		7,634		644,728
Viscofan S.A.		14,797		815,675
Vocento S.A. (a)		18,128		22,723
Zardoya Otis S.A.		32,950		234,628
				14,687,903
Sweden—3.0%
Acando AB		32,705		107,830
AddLife AB		8,064		186,061
AddNode Group AB		7,307		85,182
AddTech AB - B Shares		21,786		388,494
AF AB - B Shares		19,518		354,122
Ahlsell AB		11,855		69,594
Ahlstrom-Munksjo Oyj (e)		17,418		241,738
Alimak Group AB		8,296		103,091
Arise AB (a)		4,852		9,309
Arjo AB - B Shares		32,933		105,758
Atrium Ljungberg AB - B Shares		6,009		103,178
Attendo AB		20,278		180,397
Avanza Bank Holding AB		7,660		366,971
BE Group AB (a)		1,962		8,003
Beijer Alma AB		15,250		223,564
Beijer Electronics Group AB (a)		7,843		32,019
Sweden—(Continued)
Beijer Ref AB		20,376		334,680
Bergman & Beving AB - B Shares		12,796		122,182
Besqab AB		1,061		11,753
Betsson AB (a)		30,653		252,980
Bilia AB - A Shares		34,008		318,372
BillerudKorsnas AB		11,161		133,181
BioGaia AB - B Shares		6,083		217,687
Biotage AB		18,332		226,364
Bjorn Borg AB (a)		9,936		21,769
Bonava AB		928		11,396
Bonava AB - B Shares		15,671		202,253
Bravida Holding AB		36,168		249,864
Bufab AB		7,973		77,347
Bulten AB		3,161		31,509
Bure Equity AB		17,448		214,074
Byggmax Group AB		18,326		66,075
Catena AB		5,959		148,456
Clas Ohlson AB - B Shares		13,900		121,157
Cloetta AB - B Shares		92,493		254,249
Coor Service Management Holding AB		4,997		39,757
Corem Property Group AB - B Shares		12,248		14,777
Dios Fastigheter AB		35,250		224,354
Dometic Group AB		22,651		141,028
Doro AB (a)		3,391		13,049
Duni AB		14,094		156,334
Dustin Group AB		18,741		155,323
Eastnine AB		7,088		74,405
Elanders AB - B Shares		1,453		14,276
Enea AB (a)		4,082		46,873
eWork Group AB		2,864		26,733
Fabege AB		5,274		70,212
Fagerhult AB (e)		13,852		119,234
FastPartner AB		5,698		38,738
Fingerprint Cards AB - Class B (a)		28,890		33,084
Getinge AB - B Shares		10,655		96,640
Granges AB		19,836		180,675
Gunnebo AB		12,816		32,459
Haldex AB		16,480		128,658
Heba Fastighets AB		944		13,576
Hembla AB (a)		1,637		27,385
Hemfosa Fastigheter AB		35,677		281,874
HIQ International AB (a)		11,690		62,558
HMS Networks AB		6,144		85,370
Hoist Finance AB		3,999		19,546
Holmen AB - B Shares		22,293		441,317
Humana AB		5,221		35,341
Indutrade AB		10,177		236,631
Inwido AB		5,704		35,746
ITAB Shop Concept AB - Class B		1,944		3,300
JM AB (e)		23,748		462,711
KappAhl AB		29,980		58,697
Klovern AB - B Shares		158,702		184,200
Know It AB		9,489		164,239
Kungsleden AB		56,456		400,992
Lagercrantz Group AB - B Shares		19,997		194,642
Lindab International AB		21,316		153,128
Loomis AB - Class B		18,371		594,441

See accompanying notes to financial statements.

BHFTII-34

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Sweden—(Continued)
Medivir AB - B Shares (a)		10,470	$	28,246
Mekonomen AB		9,225		95,132
Momentum Group AB - Class B		12,796		117,154
MQ Holding AB		9,112		10,362
Mycronic AB		25,742		344,661
NCC AB - B Shares		1,433		22,351
Nederman Holding AB		4,695		47,794
Net Insight AB - Class B (a)		74,697		22,609
NetEnt AB (a)		45,991		189,449
New Wave Group AB - B Shares		15,773		84,304
Nobia AB		40,224		223,187
Nobina AB		28,840		195,170
Nolato AB - B Shares		9,452		392,486
Nordic Waterproofing Holding		1,577		12,684
NP3 Fastigheter AB		9,288		64,024
Nyfosa AB (a)		35,677		172,106
OEM International AB - B Shares		2,810		60,386
Opus Group AB (e)		92,554		50,052
Orexo AB (a)		3,585		23,768
Pandox AB		2,349		39,038
Peab AB		52,083		426,729
Platzer Fastigheter Holding AB - Class B		8,865		59,815
Pricer AB - B Shares		32,212		33,825
Proact IT Group AB		2,832		52,139
Qliro Group AB (a)		24,348		25,264
Ratos AB - B Shares		45,770		120,570
RaySearch Laboratories AB (a)		8,231		89,774
Recipharm AB - B Shares (a)		10,924		139,946
Rottneros AB		26,936		25,169
Sagax AB - Class B		14,540		212,458
SAS AB (a)		71,824		169,070
Scandi Standard AB		15,006		104,897
Scandic Hotels Group AB		14,577		128,686
Sectra AB - B Shares (a)		5,545		118,130
Semcon AB		5,540		29,642
Sensys Gatso Group AB (a)		269,456		55,654
SkiStar AB		9,076		211,800
Sweco AB - B Shares		14,540		323,687
Systemair AB		5,455		59,575
Thule Group AB		29,592		542,895
Troax Group AB		3,823		110,199
VBG Group AB - B Shares		746		10,704
Victoria Park AB - B Shares		5,633		22,994
Vitrolife AB		14,622		242,252
Wallenstam AB - B Shares		36,614		339,351
Wihlborgs Fastigheter AB		53,876		624,249
				17,117,399
Switzerland—5.1%
Allreal Holding AG (a)		3,866		601,881
Alpiq Holding AG (a)		156		12,151
ALSO Holding AG (a)		1,366		154,546
APG SGA S.A.		468		157,327
Arbonia AG (a) (e)		10,560		115,832
Aryzta AG (a) (e)		188,450		209,292
Ascom Holding AG (e)		12,379		171,456
Switzerland—(Continued)
Autoneum Holding AG		1,187		178,251
Bachem Holding AG - Class B		176		20,400
Banque Cantonale de Geneve		750		146,522
Banque Cantonale Vaudoise		443		334,395
Belimo Holding AG		131		525,823
Bell Food Group AG		880		273,213
Bellevue Group AG (a)		3,322		67,082
Berner Kantonalbank AG		1,950		386,313
BFW Liegenschaften AG (a)		528		22,889
BKW AG		4,798		335,762
Bobst Group S.A.		3,743		259,467
Bossard Holding AG - Class A (e)		2,139		306,113
Bucher Industries AG		2,604		702,521
Burckhardt Compression Holding AG		769		180,760
Burkhalter Holding AG		1,291		102,661
Calida Holding AG (a)		2,002		61,796
Carlo Gavazzi Holding AG		48		11,949
Cembra Money Bank AG		7,813		620,169
Cham Group AG (a)		113		47,591
Cicor Technologies, Ltd. (a)		644		25,851
Cie Financiere Tradition S.A.		579		60,198
Coltene Holding AG		1,308		112,126
Conzzeta AG		325		253,799
Daetwyler Holding AG		2,353		299,488
DKSH Holding AG		6,626		458,088
dormakaba Holding AG (a)		840		506,069
Dufry AG (a) (e)		5,836		554,266
EDAG Engineering Group AG (a)		2,461		44,716
EFG International AG (a)		20,307		119,165
Emmi AG		773		536,638
Energiedienst Holding AG		3,530		105,951
Evolva Holding S.A. (a)		36,339		8,489
Feintool International Holding AG (a)		588		44,970
Fenix Outdoor International AG		1,091		105,670
Ferrexpo plc		89,833		222,005
Flughafen Zurich AG		4,540		749,801
Forbo Holding AG		313		439,189
GAM Holding AG (a)		68,723		271,611
Georg Fischer AG		1,225		977,274
Gurit Holding AG		164		144,965
Helvetia Holding AG		2,220		1,299,456
Hiag Immobilien Holding AG (a)		1,150		136,419
Highlight Communications AG (a)		7,829		45,392
HOCHDORF Holding AG (a)		174		18,038
Huber & Suhner AG		5,559		372,229
Implenia AG		6,413		215,657
Inficon Holding AG (a)		600		304,438
Interroll Holding AG		226		333,479
Intershop Holding AG		416		206,609
IWG plc		206,169		548,037
Jungfraubahn Holding AG		85		10,848
Kardex AG (a)		2,247		258,592
Komax Holding AG		1,292		301,692
Kudelski S.A. (a) (e)		13,221		76,047
LEM Holding S.A.		246		262,423
Logitech International S.A.		27,277		861,858
Luzerner Kantonalbank AG		1,452		680,313

See accompanying notes to financial statements.

BHFTII-35

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Switzerland—(Continued)
MCH Group AG (a)		831	$	16,869
Meier Tobler Group AG (e)		872		13,306
Metall Zug AG - B Shares		66		167,753
Mikron Holding AG (a)		474		3,259
Mobilezone Holding AG		11,899		132,640
Mobimo Holding AG		2,761		656,824
OC Oerlikon Corp. AG (a)		57,156		643,770
Orascom Development Holding AG (a)		5,250		79,551
Orell Fuessli Holding AG		428		38,687
Oriflame Holding AG		4,601		103,213
Orior AG		2,240		181,870
Panalpina Welttransport Holding AG		2,930		389,913
Phoenix Mecano AG		274		140,175
Plazza AG - Class A		292		66,241
PSP Swiss Property AG		10,638		1,047,403
Resurs Holding AB		20,779		128,035
Rieter Holding AG		1,344		176,331
Romande Energie Holding S.A.		111		133,306
Schaffner Holding AG (a)		238		62,588
Schmolz & Bickenbach AG (a)		161,565		88,639
Schweiter Technologies AG		381		337,580
SFS Group AG (a) (e)		3,820		297,761
Siegfried Holding AG (a)		1,571		536,422
St. Galler Kantonalbank AG		1,123		515,377
Sulzer AG		4,412		349,332
Sunrise Communications Group AG (a)		9,217		811,635
Swiss Prime Site AG (a)		1,578		127,849
Swissquote Group Holding S.A.		3,968		183,919
Tamedia AG		904		97,147
Tecan Group AG		470		91,096
U-Blox Holding AG (a) (e)		2,262		182,270
Valiant Holding AG		5,102		561,642
Valora Holding AG (a)		1,467		321,707
VAT Group AG (a)		5,378		473,575
Vaudoise Assurances Holding S.A.		423		208,554
Vetropack Holding AG		88		179,822
Von Roll Holding AG (a)		7,038		9,452
Vontobel Holding AG		9,780		502,971
VZ Holding AG		691		186,201
Walliser Kantonalbank		1,160		133,395
Warteck Invest AG (a)		25		48,556
Ypsomed Holding AG (a)		1,361		160,934
Zehnder Group AG		3,984		136,136
Zug Estates Holding AG - B Shares		83		141,512
Zuger Kantonalbank AG		59		341,948
				29,185,184
Turkey—0.0%
Global Ports Holding plc		994		5,019
United Arab Emirates—0.0%
Lamprell plc (a)		100,553		77,467
United Kingdom—15.6%
4imprint Group plc		7,338		173,664
888 Holdings plc		86,183		191,615
A.G. Barr plc		37,633		378,326
United Kingdom—(Continued)
AA plc		196,019		187,136
Acacia Mining plc (a) (e)		56,954		133,010
Advanced Medical Solutions Group plc		3,307		11,534
Afren plc (a) (b) (c) (d)		251,096		0
Aggreko plc		57,711		539,343
Air Partner plc		4,960		5,422
Anglo Pacific Group plc		35,633		67,308
Anglo-Eastern Plantations plc		4,252		30,681
Arrow Global Group plc		32,174		72,136
Ascential plc		3,642		17,460
Ashmore Group plc		106,400		493,297
ASOS plc (a)		2,250		64,934
Auto Trader Group plc		283,026		1,633,475
AVEVA Group plc		14,847		456,270
Avon Rubber plc		11,857		188,699
B&M European Value Retail S.A.		254,558		913,403
Babcock International Group plc (e)		50,927		317,638
Balfour Beatty plc		232,244		734,923
BBA Aviation plc		400,738		1,111,366
Beazley plc		163,368		1,043,797
Bellway plc		40,651		1,298,197
Berkeley Group Holdings plc		2,138		94,831
Bloomsbury Publishing plc		25,349		65,125
Bodycote plc		84,979		787,721
boohoo Group plc (a)		77,276		158,300
Bovis Homes Group plc		60,601		665,910
Braemar Shipping Services plc		7,120		18,344
Brewin Dolphin Holdings plc		101,304		414,305
Britvic plc		83,065		843,398
BTG plc (a)		65,897		696,992
Cairn Energy plc (a)		234,247		447,014
Capita plc (a)		25,195		35,805
Capital & Counties Properties plc		195,683		574,266
Carclo plc (a)		16,990		17,277
Card Factory plc		94,418		208,056
CareTech Holdings plc		6,777		29,533
Carr’s Group plc		15,540		29,757
Castings plc		2,870		13,884
Centaur Media plc		92,526		52,669
Charles Taylor plc		8,688		24,117
Chemring Group plc		123,138		252,753
Chesnara plc		58,648		258,246
Cineworld Group plc		352,995		1,181,386
City of London Investment Group plc		4,786		23,131
Clarkson plc		6,420		155,224
Close Brothers Group plc		58,401		1,068,181
CLS Holdings plc		51,405		137,557
CMC Markets plc		42,124		56,487
Cobham plc (a)		641,178		795,945
Computacenter plc		29,696		379,766
Concentric AB		16,079		217,122
Connect Group plc		113,763		62,043
Consort Medical plc		22,450		268,468
ConvaTec Group plc		76,101		134,419
Costain Group plc		28,320		113,835
Countryside Properties plc		63,705		246,188
Countrywide plc (a)		6,402		698

See accompanying notes to financial statements.

BHFTII-36

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
United Kingdom—(Continued)
Cranswick plc		19,204	$	642,204
Crest Nicholson Holdings plc		50,272		209,591
CYBG plc		50,512		115,876
Daejan Holdings plc		2,053		146,883
Daily Mail & General Trust plc - Class A		91,328		667,983
Dairy Crest Group plc		54,853		294,735
Dart Group plc		1,819		17,900
De La Rue plc		32,774		175,836
Debenhams plc (e)		426,182		27,973
Devro plc		61,396		125,022
DFS Furniture plc		21,089		48,757
Dialight plc (a)		5,140		26,082
Dialog Semiconductor plc (a)		22,851		594,037
Dignity plc		19,579		173,769
Diploma plc		39,240		602,752
DiscoverIE Group plc		17,866		82,624
Dixons Carphone plc (e)		114,662		175,057
Domino’s Pizza Group plc		156,562		463,659
Drax Group plc		137,597		626,789
Dunelm Group plc (e)		31,911		219,564
EI Group plc (a)		245,184		565,405
EKF Diagnostics Holdings plc (a)		33,004		11,505
Eland Oil & Gas plc (a)		7,992		10,779
Electrocomponents plc		145,293		934,396
Elementis plc		202,330		467,411
EMIS Group plc		5,569		64,781
EnQuest plc (a)		832,061		230,954
Equiniti Group plc		32,382		88,979
Essentra plc (e)		78,989		344,731
Euromoney Institutional Investor plc		14,736		216,127
Faroe Petroleum plc (a)		11,296		21,129
FDM Group Holdings plc		8,510		80,409
Fevertree Drinks plc		5,284		147,076
Findel plc (a)		17,439		47,414
Firstgroup plc (a)		412,049		437,375
FLEX LNG, Ltd. (a)		21,214		30,219
Forterra plc		15,356		43,712
Foxtons Group plc		60,218		40,836
Fuller Smith & Turner plc - Class A		7,667		86,894
FW Thorpe plc		6,310		20,495
G4S plc		23,040		57,661
Galliford Try plc		49,848		394,622
Games Workshop Group plc		11,160		430,745
Gamma Communications plc		1,155		10,748
Gem Diamonds, Ltd. (a)		35,552		50,194
Genel Energy plc (a)		6,470		14,609
Genus plc (e)		5,966		163,076
Georgia Capital plc (a)		7,105		92,468
Go-Ahead Group plc		15,177		295,087
Gocompare.Com Group plc		86,389		75,179
Gooch & Housego plc		2,212		33,546
Goodwin plc		188		6,032
Grafton Group plc		88,160		720,350
Grainger plc		148,363		396,667
Greene King plc		121,167		815,474
Greggs plc		34,690		559,810
United Kingdom—(Continued)
Gulf Keystone Petroleum, Ltd. (a)		51,724		119,002
Gym Group plc (The)		41,701		145,279
Halfords Group plc		89,687		291,230
Hastings Group Holdings plc		8,134		19,300
Hays plc		461,035		817,898
Headlam Group plc		43,642		227,911
Helical plc (e)		47,664		193,654
Henry Boot plc		8,542		26,110
Hill & Smith Holdings plc (e)		29,060		443,590
Hilton Food Group plc (e)		6,141		70,610
Hiscox, Ltd.		72,988		1,503,565
Hollywood Bowl Group plc		18,722		55,487
HomeServe plc		84,090		923,793
Horizon Discovery Group plc (a)		4,675		10,400
Howden Joinery Group plc		199,363		1,102,595
Hunting plc		52,837		320,715
Huntsworth plc		78,751		108,113
Hurricane Energy plc (a)		42,947		24,102
Ibstock plc		75,741		191,243
IDOX plc		30,485		10,665
IG Group Holdings plc		127,101		921,573
IGas Energy plc (a)		9,108		11,137
IMI plc		81,384		976,239
Inchcape plc		161,511		1,130,351
Indivior plc (a)		173,858		247,372
Inmarsat plc		94,184		452,900
Intermediate Capital Group plc (e)		77,325		917,416
International Personal Finance plc		79,366		207,214
Interserve plc (a)		69,361		9,417
iomart Group plc		2,899		12,152
IP Group plc (a)		139,902		192,559
ITE Group plc (e)		227,697		183,622
J.D. Wetherspoon plc		28,929		410,411
Jackpotjoy plc (a)		21,152		171,767
James Fisher & Sons plc		20,005		440,810
Jardine Lloyd Thompson Group plc		42,639		1,027,894
JD Sports Fashion plc		118,756		526,182
John Laing Group plc		21,966		92,649
John Menzies plc		26,664		173,859
John Wood Group plc		141,076		903,271
Johnson Service Group plc		14,270		21,226
Jupiter Fund Management plc		117,655		442,608
Just Group plc		10,076		11,724
Kainos Group plc		13,053		66,555
Kcom Group plc		172,562		160,407
Keller Group plc		25,571		159,552
Kier Group plc (e)		50,507		262,693
Lancashire Holdings, Ltd.		67,933		522,116
Liontrust Asset Management plc		1,332		9,857
Lonmin plc (a)		12,029		6,915
Lookers plc		131,372		154,281
Low & Bonar plc		37,972		6,755
LSL Property Services plc		24,253		67,747
M&C Saatchi plc		3,407		12,621
Majestic Wine plc		6,853		21,535
Man Group plc		598,620		1,009,782
Marshalls plc		65,853		389,183

See accompanying notes to financial statements.

BHFTII-37

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
United Kingdom—(Continued)
Marston’s plc (e)		258,409	$	309,092
McBride plc (a)		63,975		101,684
McColl’s Retail Group plc		12,767		9,023
Mears Group plc		41,542		172,613
Meggitt plc		199,705		1,194,677
Merlin Entertainments plc		178,163		721,055
Metro Bank plc (a)		2,816		60,755
Millennium & Copthorne Hotels plc		54,328		323,491
Mitchells & Butlers plc (a)		70,418		230,681
Mitie Group plc		119,662		168,928
MJ Gleeson plc		12,062		98,838
Moneysupermarket.com Group plc		163,514		572,525
Morgan Advanced Materials plc		105,477		353,569
Morgan Sindall Group plc		17,569		235,889
Morses Club plc		6,380		12,809
Mothercare plc (a) (e)		102,238		20,840
Motorpoint group plc		14,323		36,762
N Brown Group plc		73,957		88,433
National Express Group plc		203,273		967,238
NCC Group plc		76,130		169,818
Non-Standard Finance plc		18,000		15,103
Norcros plc		4,097		9,896
Northgate plc		48,315		233,862
Ocado Group plc (a)		96,504		967,456
On the Beach Group plc		36,264		155,336
OneSavings Bank plc		34,833		154,912
Ophir Energy plc (a)		165,965		75,340
Oxford Instruments plc		15,893		184,098
Pagegroup plc		105,272		602,268
Pan African Resources plc (a)		108,313		11,946
Paragon Banking Group plc		72,439		355,204
PayPoint plc		23,440		241,151
Pendragon plc		345,188		98,993
Pennon Group plc		139,688		1,231,792
Petrofac, Ltd.		76,214		462,328
Pets at Home Group plc		57,751		84,996
Phoenix Group Holdings plc		140,310		1,007,579
Photo-Me International plc		89,030		100,988
Playtech plc		58,243		284,656
Polypipe Group plc		62,496		260,055
Porvair plc		8,570		45,151
Premier Asset Management Group plc		4,232		9,666
Premier Foods plc (a) (e)		334,879		140,234
Premier Oil plc (a) (e)		245,706		208,459
Provident Financial plc (a)		19,528		143,132
PZ Cussons plc		102,110		276,060
QinetiQ Group plc		183,469		670,699
Quilter plc (e)		106,008		159,052
Rank Group plc		35,576		62,485
Rathbone Brothers plc		14,708		437,271
REA Holdings plc (a)		1,120		3,483
Redde plc		10,004		21,618
Redrow plc		98,104		612,451
Renew Holdings plc		3,253		14,027
Renewi plc		221,260		92,773
Renishaw plc		12,189		658,804
Renold plc (a)		64,766		23,966
United Kingdom—(Continued)
Restaurant Group plc (The)		166,434		302,516
Revolution Bars Group plc		5,460		6,896
Ricardo plc		13,452		106,972
Rightmove plc		253,202		1,391,326
River & Mercantile Group plc		112		324
RM plc		43,283		111,601
Robert Walters plc		16,356		114,706
Rotork plc		262,065		828,553
RPC Group plc		140,988		1,167,493
RPS Group plc		100,537		173,797
S&U plc		343		9,291
Saga plc		127,724		168,165
Savills plc		62,765		563,981
Scapa Group plc		11,870		46,311
SDL plc		33,826		205,884
Secure Trust Bank plc		458		6,940
Senior plc		166,890		401,808
Severfield plc		100,890		90,330
SIG plc		252,797		351,883
Sirius Minerals plc (a)		241,946		63,831
Soco International plc		50,968		44,178
Softcat plc		34,705		259,110
Spectris plc		34,553		1,000,353
Speedy Hire plc		205,988		156,315
Spirax-Sarco Engineering plc		4,014		319,596
Spire Healthcare Group plc		6,876		9,511
Spirent Communications plc		217,958		328,203
Sportech plc (a)		20,264		10,275
Sports Direct International plc (a)		32,908		99,302
SSP Group plc		135,930		1,119,758
St. Ives plc		58,134		71,408
St. Modwen Properties plc		86,555		436,164
Stagecoach Group plc		163,409		275,532
Stallergenes Greer plc (a)		569		18,430
SThree plc		37,574		137,047
Stobart Group, Ltd. (e)		80,421		147,581
Stock Spirits Group plc		23,736		62,832
STV Group plc		2,636		11,898
Superdry plc		18,185		108,437
Synthomer plc		88,503		401,685
TalkTalk Telecom Group plc		151,305		219,517
Tate & Lyle plc		153,810		1,291,299
Ted Baker plc		8,726		171,771
Telecom Plus plc		20,692		377,697
Telit Communications plc (a)		33,381		55,423
Thomas Cook Group plc		438,591		170,607
Topps Tiles plc		61,961		49,471
TP ICAP plc (e)		203,445		778,118
Travis Perkins plc		67,481		915,632
Trifast plc		15,629		37,399
Trinity Mirror plc		157,693		132,544
TT electronics plc		79,682		199,007
U & I Group plc		54,856		145,589
Ultra Electronics Holdings plc (e)		27,882		460,428
Urban & Civic plc		5,854		19,503
Vectura Group plc (a)		245,376		218,536
Vertu Motors plc		35,216		15,828

See accompanying notes to financial statements.

BHFTII-38

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
United Kingdom—(Continued)
Vesuvius plc		95,731	$	615,213
Victrex plc		29,970		874,118
Vitec Group plc (The)		10,351		157,271
Volex plc (a) (e)		20,438		22,776
Volution Group plc		17,979		32,823
Vp plc		4,147		52,038
Watkin Jones plc		4,237		11,077
Weir Group plc (The)		247		4,061
WH Smith plc		35,182		768,498
William Hill plc		315,264		620,828
Wincanton plc		44,811		138,792
Xaar plc		18,088		33,378
				88,661,464
United States—0.3%
Alacer Gold Corp. (a)		102,778		189,716
Argonaut Gold, Inc. (a)		57,325		65,505
Burford Capital, Ltd.		7,120		149,546
Energy Fuels, Inc. (a) (e)		19,715		55,887
Golden Star Resources, Ltd. (a) (e)		28,192		89,623
HJ Capital International Holdings Co., Ltd. (a)		520,000		6,113
PureTech Health plc (a)		20,489		44,717
REC Silicon ASA (a)		643,607		44,294
Reliance Worldwide Corp., Ltd.		87,245		273,824
Sims Metal Management, Ltd.		81,887		579,030
Tahoe Resources, Inc. (a)		78,950		287,417
				1,785,672
Total Common Stocks (Cost $567,943,254)				566,866,920
Preferred Stocks—0.2%
Germany—0.2%
Biotest AG		3,990		107,456
Draegerwerk AG & Co. KGaA		2,309		123,195
FUCHS Petrolub SE		912		37,595
Jungheinrich AG		13,710		357,766
Sixt SE		4,402		241,897
Sto SE & Co. KGaA		190		17,882
Villeroy & Boch AG		505		7,473
Total Preferred Stocks (Cost $975,587)				893,264
Rights—0.0%
Australia—0.0%
Centrebet International, Ltd. (Litigation Units)		9,600		0
Austria—0.0%
Intercell AG, Expires 05/16/13 (a) (b) (c)		24,163		0
Hong Kong—0.0%
Fortune Oil CVR		575,627		0
Spain—0.0%
Faes Farma S.A., Expires 12/28/18 (a)		131,897		15,474
United Kingdom—0.0%
Ladbrokes Coral Group		312,983		43,204
Total Rights (Cost $15,138)				58,678
Warrant—0.0%
Canada—0.0%
Tervita Corp., Expires 07/19/20 (a) (e)		733		121
Singapore—0.0%
Ezion Holdings, Ltd., Expires 04/16/23 (a)		309,737		0
Total Warrants (Cost $1)				121
Short-Term Investment—0.4%
Repurchase Agreement—0.4%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $2,127,077; collateralized by U.S. Treasury Note at 2.125%, maturing 11/30/23, with a market value of $2,172,784.		2,126,935		2,126,935
Total Short-Term Investments (Cost $2,126,935)				2,126,935
Securities Lending Reinvestments (f)—4.1%
Certificates of Deposit—0.3%
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (g)		500,000		500,199
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (g)		500,000		499,953
Wells Fargo Bank N.A. 2.730%, 3M LIBOR + 0.210%, 10/25/19 (g)		500,000		500,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (g)		500,000		499,997
				2,000,149
Repurchase Agreements—3.6%
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.660%, due on 01/07/19 with a maturity value of $1,000,517; collateralized by U.S. Treasury Obligations with rates ranging from 0.625% - 3.125%, maturity dates ranging from 02/15/42 - 02/15/46, and various Common Stock with an aggregate market value of $1,054,286.		1,000,000		1,000,000

See accompanying notes to financial statements.

BHFTII-39

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (f)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd.
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $500,069; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $510,000.		500,000	$	500,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $700,097; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $714,000.		700,000		700,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $400,061; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $408,000.		400,000		400,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $4,746,575; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $4,840,646.		4,745,731		4,745,731
Merrill Lynch, Pierce, Fenner & Smith, Inc.
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $302,254; collateralized by various Common Stock with an aggregate market value of $330,000.		300,000		300,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,007,513; collateralized by various Common Stock with an aggregate market value of $1,100,000.		1,000,000		1,000,000
NBC Global Finance, Ltd.
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,400,199; collateralized by various Common Stock with an aggregate market value of $1,558,497.		1,400,000		1,400,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,000,142; collateralized by various Common Stock with an aggregate market value of $1,113,212.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $2,000,284; collateralized by various Common Stock with an aggregate market value of $2,226,425.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $500,252; collateralized by various Common Stock with an aggregate market value of $556,661.		500,000		500,000
Nomura Securities International, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $2,000,328; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 6.500%, maturity dates ranging from 02/15/19 - 08/15/48, and an aggregate market value of $2,040,000.		2,000,000		2,000,000
Repurchase Agreements—(Continued)
Societe Generale
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $950,134; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,040,702.		950,000		950,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $900,127; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $985,928.		900,000		900,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $2,000,281; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $2,190,952.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $600,299; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $657,286.		600,000		600,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $225,112; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $246,482.		225,000		225,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $300,149; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $328,643.		300,000		300,000
				20,520,731
Time Deposit—0.2%
Royal Bank of Canada 2.420%, 01/02/19		1,000,000		1,000,000
Total Securities Lending Reinvestments (Cost $23,520,731)				23,520,880
Total Investments—104.1% (Cost $594,581,646)				593,466,798
Other assets and liabilities (net)—(4.1)%				(23,116,910	)
Net Assets—100.0%			$	570,349,888

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent 0.1% of net assets.

See accompanying notes to financial statements.

BHFTII-40

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

(c)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(d)	Illiquid security. As of December 31, 2018, these securities represent 0.2% of net assets.
(e)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $24,454,716 and the collateral received consisted of cash in the amount of $23,520,731 andnon-cash collateral with a value of $3,150,420. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third- party custodian, and cannot be sold or repledged by the Portfolio. As such, this non-cash collateral is excluded from the Statement of Assets and Liabilities.
(f)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(g)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

Ten Largest Industries as of December 31, 2018 (Unaudited)	% of Net Assets
Machinery		6.3
Real Estate Management & Development		4.8
Metals & Mining		4.7
Banks		4.1
Hotels, Restaurants & Leisure		3.6
Food Products		3.6
Capital Markets		3.4
Construction & Engineering		3.1
Chemicals		3.1
Electronic Equipment, Instruments & Components		3.0

Glossary of Abbreviations

Other Abbreviations

(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Australia	$	943,589	$	37,065,122	$	69,744	$	38,078,455
Austria		—		7,113,805		0		7,113,805
Belgium		1,513,838		8,153,566		—		9,667,404
Canada		45,452,033		443,599		25,917		45,921,549
China		158,507		1,180,826		—		1,339,333
Colombia		30,137		—		—		30,137
Denmark		—		13,124,869		—		13,124,869
Finland		—		15,958,761		—		15,958,761
France		3,700		22,394,447		—		22,398,147
Georgia		—		147,416		—		147,416
Germany		—		34,944,974		—		34,944,974
Ghana		—		1,040,565		—		1,040,565
Greenland		—		1,425		—		1,425
Guernsey, Channel Islands		—		60,422		—		60,422
Hong Kong		816,237		15,903,761		58,622		16,778,620
Ireland		—		2,476,639		—		2,476,639
Isle of Man		—		38,131		—		38,131

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2			Level 3		Total
Israel	$	—	$	6,340,409		$	—	$	6,340,409
Italy		—		23,014,868			0		23,014,868
Japan		—		138,564,896			—		138,564,896
Jersey, Channel Islands		—		476,928			—		476,928
Jordan		—		466,759			—		466,759
Kazakhstan		—		285,960			—		285,960
Liechtenstein		—		309,509			—		309,509
Luxembourg		—		681,140			—		681,140
Macau		—		62,166			—		62,166
Malaysia		—		1,412			—		1,412
Malta		—		457,928			—		457,928
Monaco		265,341		—			—		265,341
Netherlands		—		16,449,942			0		16,449,942
New Zealand		66,980		4,585,133			—		4,652,113
Norway		137,181		4,800,100			—		4,937,281
Peru		—		148,006			—		148,006
Philippines		—		7,113			—		7,113
Portugal		—		2,362,357			0		2,362,357
Russia		—		97,768			—		97,768
Singapore		230,420		6,246,409			27,065		6,503,894
South Africa		6,704		133,666			—		140,370
Spain		—		14,687,903			0		14,687,903
Sweden		172,106		16,945,293			—		17,117,399
Switzerland		—		29,185,184			—		29,185,184
Turkey		—		5,019			—		5,019
United Arab Emirates		—		77,467			—		77,467
United Kingdom		1,011,062		87,650,402			0		88,661,464
United States		688,148		1,097,524			—		1,785,672
Total Common Stocks		51,495,983		515,189,589			181,348		566,866,920
Total Preferred Stocks*		—		893,264			—		893,264
Rights
Australia		—		0			—		0
Austria		—		—			0		0
Hong Kong		—		—			0		0
Spain		15,474		—			—		15,474
United Kingdom		—		43,204			—		43,204
Total Rights		15,474		43,204			0		58,678
Warrant
Canada		121		—			—		121
Singapore		—		0			—		0
Total Warrants		121		0			—		121
Total Short-Term Investment*		—		2,126,935			—		2,126,935
Total Securities Lending Reinvestments*		—		23,520,880			—		23,520,880
Total Investments	$	51,511,578	$	541,773,872		$	181,348	$	593,466,798
Collateral for Securities Loaned (Liability)	$	—	$	(23,520,731	)	$	—	$	(23,520,731	)

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2018 is not presented.

Transfers from Level 3 to Level 2 in the amount of $385,181 were due to the resumption of trading activity which resulted in the availability of significant observable inputs. Transfers from Level 1 and Level 2 to Level 3 in the amount of $369,977 were due to trading halts on the securities’ respective exchanges which resulted in the lack of observable inputs.

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	593,466,798
Cash denominated in foreign currencies (c)		859,917
Receivable for:
Investments sold		395,166
Fund shares sold		694
Dividends and interest		1,500,368
Prepaid expenses		1,845
Total Assets		596,224,788
Liabilities
Collateral for securities loaned		23,520,731
Payables for:
Investments purchased		1,282,579
Fund shares redeemed		52,991
Accrued Expenses:
Management fees		392,793
Distribution and service fees		16,026
Deferred trustees’ fees		111,916
Other expenses		497,864
Total Liabilities		25,874,900
Net Assets	$	570,349,888
Net Assets Consist of:
Paid in surplus	$	515,735,725
Distributable earnings (Accumulated losses)		54,614,163
Net Assets	$	570,349,888
Net Assets
Class A	$	495,660,570
Class B		74,689,318
Capital Shares Outstanding*
Class A		44,759,437
Class B		6,794,135
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	11.07
Class B		10.99

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $594,581,646.
(b)	Includes securities loaned at value of $24,454,716.
(c)	Identified cost of cash denominated in foreign currencies was $856,704.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	16,878,636
Interest		11,531
Securities lending income		564,748
Total investment income		17,454,915
Expenses
Management fees		5,510,899
Administration fees		29,492
Custodian and accounting fees		420,127
Distribution and service fees—Class B		220,923
Audit and tax services		71,100
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		32,354
Insurance		4,554
Miscellaneous		174,031
Total expenses		6,542,531
Less management fee waiver		(50,000	)
Net expenses		6,492,531
Net Investment Income		10,962,384
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		58,586,966
Foreign currency transactions		(183,982	)
Net realized gain		58,402,984
Net change in unrealized depreciation on:
Investments		(213,525,563	)
Foreign currency transactions		(32,476	)
Net change in unrealized depreciation		(213,558,039	)
Net realized and unrealized loss		(155,155,055	)
Net Decrease in Net Assets From Operations	$	(144,192,671	)

(a) Net of foreign withholding taxes of $1,567,002.

See accompanying notes to financial statements.

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Brighthouse/Dimensional International Small Company Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	10,962,384		$	10,892,070
Net realized gain		58,402,984			49,275,275
Net change in unrealized appreciation (depreciation)		(213,558,039	)		129,906,303
Increase (decrease) in net assets from operations		(144,192,671	)		190,073,648
From Distributions to Shareholders (a)
Class A		(57,475,651	)		(42,951,170	)
Class B		(8,473,897	)		(5,508,775	)
Total distributions		(65,949,548	)		(48,459,945	)
Increase (decrease) in net assets from capital share transactions		39,417,154			(62,478,294	)
Total increase (decrease) in net assets		(170,725,065	)		79,135,409
Net Assets
Beginning of period		741,074,953			661,939,544
End of period	$	570,349,888		$	741,074,953	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,060,226		$	14,397,420			4,079		$	54,040
Reinvestments		4,087,884			57,475,651			3,181,569			42,951,170
Redemptions		(2,666,574	)		(41,240,441	)		(7,480,223	)		(105,916,766	)
Net increase (decrease)		2,481,536		$	30,632,630			(4,294,575	)	$	(62,911,556	)
Class B
Sales		1,316,690		$	18,323,356			948,526		$	13,377,371
Reinvestments		606,145			8,473,897			410,184			5,508,775
Redemptions		(1,271,511	)		(18,012,729	)		(1,322,091	)		(18,452,884	)
Net increase		651,324		$	8,784,524			36,619		$	433,262
Increase (decrease) derived from capital shares transactions				$	39,417,154					$	(62,478,294	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(13,999,221	)	$	(28,951,949	)
Class B		(1,667,583	)		(3,841,192	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $5,119,950 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-44

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	15.32		$	12.57		$	12.97		$	14.84		$	16.83
Income (Loss) from Investment Operations
Net investment income (a)		0.23			0.22			0.28	(b)		0.25			0.26
Net realized and unrealized gain (loss)		(3.05	)		3.52			0.44			0.78			(1.28	)
Total income (loss) from investment operations		(2.82	)		3.74			0.72			1.03			(1.02	)
Less Distributions
Distributions from net investment income		(0.40	)		(0.32	)		(0.29	)		(0.31	)		(0.38	)
Distributions from net realized capital gains		(1.03	)		(0.67	)		(0.83	)		(2.59	)		(0.59	)
Total distributions		(1.43	)		(0.99	)		(1.12	)		(2.90	)		(0.97	)
Net Asset Value, End of Period	$	11.07		$	15.32		$	12.57		$	12.97		$	14.84
Total Return (%) (c)		(20.37	)		30.82			6.00	(d)		6.08			(6.50	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.93			0.92			0.93			0.95			0.98
Net ratio of expenses to average net assets (%) (e)		0.92			0.91			0.92			0.94			0.97
Ratio of net investment income to average net assets (%)		1.64			1.56			2.26	(b)		1.78			1.58
Portfolio turnover rate (%)		16			5			8			12			10
Net assets, end of period (in millions)	$	495.7		$	647.6		$	585.6		$	604.2		$	606.4
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	15.22		$	12.50		$	12.89		$	14.77		$	16.75
Income (Loss) from Investment Operations
Net investment income (a)		0.19			0.18			0.25	(b)		0.21			0.21
Net realized and unrealized gain (loss)		(3.02	)		3.50			0.44			0.77			(1.26	)
Total income (loss) from investment operations		(2.83	)		3.68			0.69			0.98			(1.05	)
Less Distributions
Distributions from net investment income		(0.37	)		(0.29	)		(0.25	)		(0.27	)		(0.34	)
Distributions from net realized capital gains		(1.03	)		(0.67	)		(0.83	)		(2.59	)		(0.59	)
Total distributions		(1.40	)		(0.96	)		(1.08	)		(2.86	)		(0.93	)
Net Asset Value, End of Period	$	10.99		$	15.22		$	12.50		$	12.89		$	14.77
Total Return (%) (c)		(20.56	)		30.45			5.83	(d)		5.76			(6.69	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.18			1.17			1.18			1.20			1.23
Net ratio of expenses to average net assets (%) (e)		1.17			1.16			1.17			1.19			1.22
Ratio of net investment income to average net assets (%)		1.39			1.29			2.01	(b)		1.50			1.32
Portfolio turnover rate (%)		16			5			8			12			10
Net assets, end of period (in millions)	$	74.7		$	93.5		$	76.3		$	81.2		$	74.5

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to $0.02 per share and 0.14% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the impact of thenon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which enhanced the performance of the Portfolio. Excluding this item, total return would have been 5.91% for Class A and 5.66% for Class B.
(e)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-45

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse/Dimensional International Small Company Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-46

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its

BHFTII-47

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $2,126,935. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $20,520,731. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk: The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

BHFTII-48

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk:The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$ 0	$	109,226,065	$	0	$	125,669,110

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31,  2018	% per annum			Average Daily Net Assets
$5,510,899		0.850	%	Of the first $100 million
		0.800	%	On amounts in excess of $100 million

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Dimensional Fund Advisors LP (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

BHFTII-49

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waivers - Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.050%		Of the first $100 million

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	603,738,257
Gross unrealized appreciation		133,542,746
Gross unrealized depreciation		(143,814,205	)
Net unrealized appreciation (depreciation)	$	(10,271,459	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$19,890,152	$	18,121,381	$	46,059,396	$	30,338,564	$	65,949,548	$	48,459,945

BHFTII-50

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$8,253,264	$	56,747,079	$	(10,274,264	)	$	—	$	54,726,079

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-51

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse/Dimensional International Small Company Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Dimensional International Small Company Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Dimensional International Small Company Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-52

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-53

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-54

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-55

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-56

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-57

Brighthouse Funds Trust II

Brighthouse/Dimensional International Small Company Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse/Dimensional International Small Company Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Dimensional Fund Advisors LP regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five-year periods ended June 30, 2018. The Board also took into account that the Portfolio underperformed its benchmark, the MSCI Worldex-U.S. Small Cap Index, for theone-, three-, and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, Expense Universe median,Sub-advised Expense Universe median. The Board also noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also considered that the Portfolio’s contractualsub-advisory fees were above the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-58

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Managed by Wellington Management Company LLP

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Brighthouse/Wellington Balanced Portfolio returned-3.76%,-4.01%, and-3.88%, respectively. The Portfolio’s benchmarks, the Standard & Poor’s (“S&P”) 500 Index¹ and the Bloomberg Barclays U.S. Aggregate Bond Index², returned-4.38% and 0.01%, respectively. The Blended Index³, a blend of the S&P 500 Index (60%) and the Bloomberg Barclays U.S. Aggregate Bond Index (40%) returned-2.35%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities posted negative results over the trailing twelve-month period ended December 31, 2018. The Federal Reserve (the “Fed”) raised its benchmark interest rate by 25 basis points four times during the year, in line with expectations and potentially signaling a more dovish path heading into 2019. Bullish sentiment was exceptionally strong to start the year, as better-than-expected corporate profits helped drive U.S. equities higher. Signs of inflation entered the market in February and led to heightened levels of volatility, a theme that continued for the remainder of the period. By the summer of 2018, talk of tariffs and trade wars had progressed to implementation and raised concerns in an otherwise strong economy. Nonetheless, positive sentiment persisted, fueled by robust earnings growth, fiscal stimulus, the announcement of a preliminary trade deal between the U.S. and Mexico, and expectations for stronger U.S. economic growth relative to other regions of the world. This changed in the final months of 2018, when concerns surrounding slowing global growth, rich valuations, rising central bank benchmark interest rates, and capricious U.S. and China trade tensions were at the forefront of investors’ minds. Equity returns in October and December were sharply negative, with the latter representing the largest U.S. equity market monthly decline seen this decade, culminating the first year of negative U.S. equity returns since 2008.

Returns varied by market capitalization. During the period,large-cap stocks, as measured by the S&P 500 Index, outperformedmid- andsmall-cap stocks, as measured by the S&P MidCap 400 Index and Russell 2000 Index.

Global fixed income markets were not immune to the downturn and generated negative total returns during the year, driven by higher U.S. and select emerging markets government bond yields and corporate spread widening. Sharp currency declines in Turkey and Argentina over the summer sparked emerging markets contagion fears before policymakers intervened with various stabilization measures. The U.S. dollar and other safe-haven currencies such as the Japanese yen rallied versus most currencies as elevated U.S.-China trade uncertainty and global equity market weakness led to safe-haven flows. The prospect of fewer Fed rate hikes in 2019 amid a deteriorating global economic outlook contributed to a decline in U.S. yields late in the period, but they still finished higher for the year.

Absolute returns were positive for most securitized sectors but negative for corporate sectors during the year. On an excess return basis, most major spread sectors posted negative returns over the period, with greater underperformance across lower-rated sectors.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio underperformed its custom benchmark, consisting of 60% S&P 500 Index / 40% Bloomberg Barclays U.S. Aggregate Bond Index, for the period ended December 31, 2018.

The equity portion of the Portfolio underperformed its benchmark, the S&P 500 Index, for the twelve-month period ended December 31, 2018. Weak stock selection within the Health Care, Consumer Staples and Energy sectors detracted most from relative performance and was partially offset by stronger stock selection within the Communication Services, Industrials and Information Technology (“IT”) sectors.

Among the equity Portfolio’s largest individual relative detractors were positions innon-benchmark held British-American Tobacco (Consumer Staples), an overweight to Coty (Consumer Staples), and anout-of-benchmark position in Flex (IT).

The Portfolio’s top relative equity contributors over the period included overweight positions in Advanced Micro Devices (IT), Boston Scientific (Health Care), and NRG Energy (Utilities).

The fixed income portion of the Portfolio underperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, for the 2018 calendar year. Allocations to High Yield and Bank Loans detracted from relative performance over the period. The Portfolio implemented a short duration posture late in the period, which had a negative impact on relative results as rates fell amid a globalflight-to-quality during the fourth quarter. Additionally, the Portfolio was positioned for rising inflation expectations (i.e. long U.S. Treasury Inflation-Protected Securities (“TIPS”) vs. nominal Treasuries) which detracted as TIPS underperformed duration-equivalent nominal U.S. Treasuries during the period.

The Portfolio’s sector allocation contributed positively to relative performance. Allocations to structured finance sectors, including Commercial Mortgage-Backed Securities (“CMBS”),Non-Agency Residential Mortgage-Backed Securities (“RMBS”), and positioning within Agency Mortgage-Backed Securities (“MBS”) all contributed positively to returns. Investment Grade Credit positioning was within Industrials.

During the period, the fixed income portion of the Portfolio used Treasury futures, swaps, and options to manage duration and yield curve positioning. The Portfolio also used currency forwards, futures, and options to implementnon-U.S. rate and currency positions. Credit Default Swaps (“CDS”) were used to manage credit exposure and Investment Grade and High Yield CDS index positions were

BHFTII-1

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Managed by Wellington Management Company LLP

Portfolio Manager Commentary*—(Continued)

used as a source of liquidity and to manage overall portfolio risk. These positions performed as expected during the period. The High Yield sector underperformed many other fixed income sectors during the period. However, the Portfolio’s short positions implemented through credit derivatives were additive to relative performance while the Investment Grade CDS positions also had a small positive impact on relative performance.

As a reminder, the equity portion of the Portfolio was managed in an industry-neutral structure relative to the benchmark, which ensured stock selection was the primary driver of performance. On an absolute basis, the Portfolio ended the period with the most exposure to the IT, Health Care, and Financials sectors.

At period end, the Global Industry Analysts remained focused on fundamental stock research. In the IT sector, the team focused on companies exposed to 5G infrastructure as potential areas for growth and avoided the smartphone supply chain generally and the iPhone chain specifically and expressed their view through an underweight to Apple. Within the Consumer Discretionary and Consumer Staples sectors, our analysts evaluated and prepared for the impact of tariffs, which we believed could have wide-ranging impacts within the retail industry. The best ideas of our analysts resided in severalsub-industries, includingoff-price retailers (TJX Companies), strong global brands (Nike & Coca-Cola), and franchised restaurants (McDonald’s), which happen to be the more defensive areas of the universe and were a prudent place to invest given the challenges of predicting the probability of future tariffs (size and scope). Within Industrials, our analysts were focused on companies with low volatility, low beta, and minimal exposure to China and foreign exchange markets. High quality aerospace and defense companies Boeing and Lockheed Martin exemplified this approach and continued to be our largest active weights in the sector.

At the end of the year, the fixed income portion of the Portfolio had a short duration posture. The Portfolio remained positioned for an increase in inflation expectations as inflation expectations have declined meaningfully in the period and breakeven rates were attractive. The Portfolio was underweight Investment Grade Credit and favored Structured Finance, which included an overweight to CMBS and an allocation toNon-Agency MBS and Collateralized Loan Obligations. Further, the Portfolio was overweight to Agency MBS Pass-Throughs and continued to maintain allocations to Bank Loans,BB-rated High Yield, and emerging market debt.

At the end of the period, the Portfolio’s asset allocation breakdown was approximately a 61% allocation to equity and a 39% allocation to fixed income and remained unchanged from the beginning of the period.

Mary Pryshlak

Jonathan White

Mark Mandel

Joseph F. Marvan

Robert D. Burn

Campe Goodman

Portfolio Managers

Wellington Management Company LLP

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX, THE BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX AND THE BLENDED INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse/Wellington Balanced Portfolio
Class A		-3.76		6.10		9.30
Class B		-4.01		5.83		9.02
Class E		-3.88		5.94		9.13
S&P 500 Index		-4.38		8.50		13.12
Bloomberg Barclays U.S. Aggregate Bond Index		0.01		2.52		3.48
Blended Index		-2.35		6.24		9.43

¹ The Standard & Poor’s (S&P) 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-weighted index (stock price times number of shares outstanding) with each stock’s weight in the Index proportionate to its market value.

² The Bloomberg Barclays U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

³ The Blended Index is a composite index consisting of 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Equity Sectors

	% of Net Assets
Information Technology		9.9
Health Care		8.8
Financials		7.0
Consumer Discretionary		6.6
Industrials		5.9

Top Fixed Income Sectors

	% of Net Assets
U.S. Treasury & Government Agencies		26.3
Corporate Bonds & Notes		12.0
Asset-Backed Securities		8.7
Mortgage-Backed Securities		4.6
Floating Rate Loans		0.9

Top Equity Holdings

	% of Net Assets
Amazon.com, Inc.		2.3
Microsoft Corp.		2.0
Alphabet, Inc.		1.8
Bank of America Corp.		1.7
UnitedHealth Group, Inc.		1.4

Top Fixed Income Issuers

	% of Net Assets
Fannie Mae 30 Yr. Pool		11.8
Ginnie Mae II 30 Yr. Pool		3.1
Freddie Mac 30 Yr. Gold Pool		2.6
U.S. Treasury Bonds		1.6
Fannie Mae 15 Yr. Pool		1.2

BHFTII-3

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse/Wellington Balanced Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.50	%	$	1,000.00	$	948.40	$	2.46
	Hypothetical*		0.50	%	$	1,000.00	$	1,022.69	$	2.55
Class B (a)	Actual		0.75	%	$	1,000.00	$	947.00	$	3.68
	Hypothetical*		0.75	%	$	1,000.00	$	1,021.43	$	3.82
Class E (a)	Actual		0.65	%	$	1,000.00	$	947.70	$	3.19
	Hypothetical*		0.65	%	$	1,000.00	$	1,021.93	$	3.31

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—57.8% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—2.3%
Boeing Co. (The)		32,164	$	10,372,890
General Dynamics Corp.		26,735		4,203,009
Harris Corp.		26,458		3,562,570
Lockheed Martin Corp.		25,067		6,563,543
Moog, Inc. - Class A		22,396		1,735,242
				26,437,254
Air Freight & Logistics—0.0%
FedEx Corp.		2,375		383,159
Airlines—0.2%
JetBlue Airways Corp. (a)		127,281		2,044,133
Banks—2.0%
Bank of America Corp.		762,489		18,787,729
SVB Financial Group (a)		8,937		1,697,315
Zions Bancorp N.A.		46,117		1,878,807
				22,363,851
Beverages—1.2%
Coca-Cola Co. (The)		224,641		10,636,751
Monster Beverage Corp. (a)		58,352		2,872,086
				13,508,837
Biotechnology—0.9%
Aduro Biotech, Inc. (a)		26,606		70,240
Alnylam Pharmaceuticals, Inc. (a) (b)		3,611		263,278
Aptinyx, Inc. (a)		7,196		119,022
Arcus Biosciences, Inc. (a)		11,888		128,034
Audentes Therapeutics, Inc. (a)		9,048		192,903
Biogen, Inc. (a)		2,841		854,914
Biohaven Pharmaceutical Holding Co., Ltd. (a)		29,543		1,092,500
Bluebird Bio, Inc. (a) (b)		6,215		616,528
Calithera Biosciences, Inc. (a)		14,741		59,111
Celgene Corp. (a)		2,831		181,439
Coherus Biosciences, Inc. (a) (b)		38,405		347,565
CytomX Therapeutics, Inc. (a)		12,500		188,750
Forty Seven, Inc. (a) (b)		25,145		395,279
G1 Therapeutics, Inc. (a)		9,009		172,522
Global Blood Therapeutics, Inc. (a) (b)		9,639		395,681
GlycoMimetics, Inc. (a) (b)		40,306		381,698
Heron Therapeutics, Inc. (a) (b)		7,966		206,638
Incyte Corp. (a)		6,954		442,205
Ironwood Pharmaceuticals, Inc. (a)		35,699		369,842
Jounce Therapeutics, Inc. (a)		8,043		27,105
Karyopharm Therapeutics, Inc. (a) (b)		29,147		273,107
Loxo Oncology, Inc. (a)		5,079		711,416
Momenta Pharmaceuticals, Inc. (a)		17,000		187,680
Neon Therapeutics, Inc. (a) (b)		6,879		34,601
Ra Pharmaceuticals, Inc. (a)		20,912		380,598
Radius Health, Inc. (a) (b)		12,031		198,391
Regeneron Pharmaceuticals, Inc. (a)		893		333,536
Rigel Pharmaceuticals, Inc. (a)		41,463		95,365
Seattle Genetics, Inc. (a)		16,178		916,646
Spark Therapeutics, Inc. (a) (b)		4,000		156,560
Biotechnology—(Continued)
Syndax Pharmaceuticals, Inc. (a) (b)		26,685		118,748
TESARO, Inc. (a) (b)		3,793		281,630
Trevena, Inc. (a) (b)		63,243		27,195
				10,220,727
Capital Markets—1.7%
Blucora, Inc. (a)		112,761		3,003,953
FactSet Research Systems, Inc.		16,504		3,302,946
Hamilton Lane, Inc. - Class A		45,374		1,678,838
Northern Trust Corp.		27,717		2,316,864
Raymond James Financial, Inc.		26,501		1,971,939
TD Ameritrade Holding Corp.		137,420		6,728,083
				19,002,623
Chemicals—1.2%
Cabot Corp.		37,575		1,613,470
Celanese Corp.		19,278		1,734,442
DowDuPont, Inc.		49,128		2,627,365
FMC Corp. (b)		24,222		1,791,459
Linde plc		17,692		2,760,660
PPG Industries, Inc.		33,903		3,465,904
				13,993,300
Commercial Services & Supplies—0.4%
Waste Management, Inc.		51,813		4,610,839
Construction & Engineering—0.1%
Granite Construction, Inc. (b)		16,259		654,912
Construction Materials—0.1%
Martin Marietta Materials, Inc. (b)		828		142,309
Vulcan Materials Co.		5,584		551,699
				694,008
Consumer Finance—0.5%
American Express Co.		38,986		3,716,145
OneMain Holdings, Inc. (a)		70,300		1,707,587
				5,423,732
Containers & Packaging—0.6%
Ardagh Group S.A.		46,000		509,680
Ball Corp.		83,602		3,844,020
International Paper Co.		52,334		2,112,200
				6,465,900
Diversified Consumer Services—0.0%
Houghton Mifflin Harcourt Co. (a)		46,900		415,534
Diversified Financial Services—0.4%
AXA Equitable Holdings, Inc.		95,700		1,591,491
Voya Financial, Inc.		65,214		2,617,690
				4,209,181

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Diversified Telecommunication Services—1.2%
Verizon Communications, Inc.		234,446	$	13,180,554
Electric Utilities—1.5%
Avangrid, Inc. (b)		56,587		2,834,443
Edison International		70,339		3,993,145
Exelon Corp.		93,499		4,216,805
NextEra Energy, Inc.		31,514		5,477,763
PG&E Corp. (a)		14,854		352,783
				16,874,939
Electrical Equipment—0.3%
AMETEK, Inc.		20,710		1,402,067
Eaton Corp. plc		29,596		2,032,061
				3,434,128
Electronic Equipment, Instruments & Components—0.2%
Flex, Ltd. (a)		374,866		2,852,730
Energy Equipment & Services—0.4%
Baker Hughes a GE Co.		89,106		1,915,779
Halliburton Co.		84,964		2,258,343
				4,174,122
Entertainment—0.7%
Cinemark Holdings, Inc. (b)		21,080		754,664
Liberty Media Corp.-Liberty Formula One - Class C (a)		42,980		1,319,486
Netflix, Inc. (a) (b)		7,174		1,920,193
Spotify Technology S.A. (a)		4,603		522,441
Twenty-First Century Fox, Inc. - Class A		19,178		922,845
Viacom, Inc. - Class B		40,160		1,032,112
Walt Disney Co. (The) (b)		12,591		1,380,603
				7,852,344
Equity Real Estate Investment Trusts—1.9%
Alexandria Real Estate Equities, Inc.		22,007		2,536,087
American Tower Corp.		57,910		9,160,783
Camden Property Trust		32,997		2,905,386
Equinix, Inc.		6,643		2,342,056
Public Storage		9,163		1,854,683
Simon Property Group, Inc.		18,152		3,049,354
				21,848,349
Food & Staples Retailing—0.3%
Performance Food Group Co. (a)		31,066		1,002,500
U.S. Foods Holding Corp. (a)		66,831		2,114,533
				3,117,033
Food Products—1.1%
Archer-Daniels-Midland Co.		41,290		1,691,651
Freshpet, Inc. (a)		31,918		1,026,483
Hormel Foods Corp.		28,216		1,204,259
Hostess Brands, Inc. (a)		145,846		1,595,555
McCormick & Co., Inc.		15,658		2,180,220
Food Products—(Continued)
Post Holdings, Inc. (a) (b)		56,464		5,032,636
				12,730,804
Health Care Equipment & Supplies—2.7%
Abbott Laboratories		85,821		6,207,433
Baxter International, Inc.		41,477		2,730,016
Boston Scientific Corp. (a)		227,042		8,023,664
Danaher Corp.		41,869		4,317,531
Medtronic plc		105,554		9,601,192
				30,879,836
Health Care Providers & Services—1.7%
HCA Healthcare, Inc.		27,470		3,418,642
UnitedHealth Group, Inc.		64,911		16,170,628
				19,589,270
Hotels, Restaurants & Leisure—1.1%
Aramark		22,270		645,162
Hyatt Hotels Corp. - Class A		43,998		2,974,265
McDonald’s Corp.		44,739		7,944,304
MGM Resorts International		45,959		1,114,965
				12,678,696
Household Durables—0.2%
Installed Building Products, Inc. (a)		43,936		1,480,204
iRobot Corp. (a) (b)		10,816		905,732
				2,385,936
Independent Power and Renewable Electricity Producers—0.4%
NRG Energy, Inc.		111,012		4,396,075
Industrial Conglomerates—0.5%
3M Co.		18,091		3,447,059
General Electric Co.		264,913		2,005,392
				5,452,451
Insurance—2.4%
Allstate Corp. (The)		9,894		817,541
American International Group, Inc.		115,794		4,563,441
Assurant, Inc.		29,741		2,660,035
Assured Guaranty, Ltd.		109,945		4,208,695
Athene Holding, Ltd. - Class A (a)		78,713		3,135,139
Hartford Financial Services Group, Inc. (The)		80,726		3,588,271
Marsh & McLennan Cos., Inc.		61,352		4,892,822
Prudential Financial, Inc.		33,080		2,697,674
Trupanion, Inc. (a) (b)		46,748		1,190,204
				27,753,822
Interactive Media & Services—2.6%
Alphabet, Inc. - Class A (a)		19,920		20,815,603
Facebook, Inc. - Class A (a)		65,688		8,611,040
				29,426,643

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Internet & Direct Marketing Retail—3.3%
Amazon.com, Inc. (a)		17,685	$	26,562,340
Booking Holdings, Inc. (a)		1,890		3,255,374
Etsy, Inc. (a) (b)		7,892		375,422
Expedia Group, Inc.		39,396		4,437,959
Wayfair, Inc. - Class A (a)		35,902		3,234,052
				37,865,147
IT Services—2.7%
FleetCor Technologies, Inc. (a)		16,202		3,009,035
Genpact, Ltd.		62,449		1,685,499
Global Payments, Inc.		43,731		4,509,978
GoDaddy, Inc. - Class A (a)		57,489		3,772,428
PayPal Holdings, Inc. (a)		46,404		3,902,112
Total System Services, Inc.		11,643		946,460
VeriSign, Inc. (a)		20,842		3,090,660
Visa, Inc. - Class A		65,437		8,633,758
WEX, Inc. (a)		11,099		1,554,526
				31,104,456
Life Sciences Tools & Services—0.6%
Thermo Fisher Scientific, Inc.		30,093		6,734,512
Machinery—0.9%
AGCO Corp.		6,104		339,810
Caterpillar, Inc.		17,015		2,162,096
Deere & Co.		14,708		2,193,992
Fortive Corp.		25,572		1,730,202
Greenbrier Cos., Inc. (The)		19,126		756,242
Illinois Tool Works, Inc. (b)		14,493		1,836,118
Pentair plc		33,571		1,268,312
				10,286,772
Marine—0.1%
Kirby Corp. (a) (b)		13,035		878,038
Media—1.4%
Charter Communications, Inc. - Class A (a)		14,635		4,170,536
Comcast Corp. - Class A		305,138		10,389,949
Interpublic Group of Cos., Inc. (The)		55,723		1,149,565
New York Times Co. (The) - Class A		25,771		574,436
				16,284,486
Metals & Mining—0.1%
Alcoa Corp. (a)		18,634		495,292
Carpenter Technology Corp.		4,796		170,785
Freeport-McMoRan, Inc.		22,659		233,614
Southern Copper Corp.		5,391		165,881
Steel Dynamics, Inc.		14,222		427,229
				1,492,801
Multi-Utilities—0.5%
Sempra Energy (b)		53,552		5,793,791
Oil, Gas & Consumable Fuels—2.8%
Chevron Corp.		49,852		5,423,399
Concho Resources, Inc. (a)		13,966		1,435,565
Diamondback Energy, Inc.		8,541		791,751
Encana Corp.		202,346		1,169,560
Exxon Mobil Corp.		189,255		12,905,299
Kosmos Energy, Ltd. (a)		128,705		523,829
Marathon Petroleum Corp.		61,830		3,648,588
Noble Energy, Inc. (b)		30,838		578,521
ONEOK, Inc.		26,518		1,430,646
Paragon Offshore Finance Co. - Class A (a) (c)		162		172
Paragon Offshore Finance Co. - Class B (a) (c)		81		2,835
Templar Energy LLC (a) (c) (d) (e)		2,426		0
TransCanada Corp. (b)		100,636		3,592,705
				31,502,870
Personal Products—0.5%
Coty, Inc. - Class A (a) (b)		221,310		1,451,794
Unilever NV		69,005		3,712,469
				5,164,263
Pharmaceuticals—2.8%
Aerie Pharmaceuticals, Inc. (a)		13,052		471,177
Allergan plc		51,040		6,822,007
Amneal Pharmaceuticals, Inc. (a) (b)		66,842		904,372
Assembly Biosciences, Inc. (a)		7,799		176,413
AstraZeneca plc (ADR) (b)		152,132		5,777,973
Bristol-Myers Squibb Co.		158,844		8,256,711
Clearside Biomedical, Inc. (a) (b)		10,600		11,342
Dermira, Inc. (a)		60,417		434,398
Elanco Animal Health, Inc. (a) (b)		14,500		457,185
Kala Pharmaceuticals, Inc. (a)		17,700		86,553
Medicines Co. (The) (a) (b)		6,600		126,324
Mylan NV (a)		105,149		2,881,083
MyoKardia, Inc. (a)		13,634		666,157
Nektar Therapeutics (a)		32,680		1,074,192
Otonomy, Inc. (a)		28,096		51,978
Revance Therapeutics, Inc. (a) (b)		20,027		403,144
Teva Pharmaceutical Industries, Ltd. (ADR)		189,403		2,920,594
Tricida, Inc. (a)		16,500		389,070
				31,910,673
Professional Services—0.6%
Equifax, Inc.		9,139		851,115
IHS Markit, Ltd. (a)		72,509		3,478,257
TransUnion		19,163		1,088,458
TriNet Group, Inc. (a)		30,226		1,267,981
				6,685,811
Road & Rail—0.4%
Norfolk Southern Corp.		17,636		2,637,287
Union Pacific Corp.		16,650		2,301,530
				4,938,817
Semiconductors & Semiconductor Equipment—1.8%
Advanced Micro Devices, Inc. (a)		156,796		2,894,454
Broadcom, Inc.		2,657		675,622
Intel Corp.		96,680		4,537,192

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Semiconductors & Semiconductor Equipment—(Continued)
KLA-Tencor Corp.		12,751	$	1,141,087
Marvell Technology Group, Ltd.		55,762		902,787
Micron Technology, Inc. (a)		60,170		1,909,194
NVIDIA Corp.		9,832		1,312,572
Teradyne, Inc.		61,654		1,934,703
Texas Instruments, Inc.		37,033		3,499,618
Xilinx, Inc.		23,558		2,006,435
				20,813,664
Software—3.8%
Adobe, Inc. (a)		9,329		2,110,593
Atlassian Corp. plc - Class A (a)		2,044		181,875
Autodesk, Inc. (a)		7,506		965,347
Ceridian HCM Holding, Inc. (a) (b)		12,604		434,712
Guidewire Software, Inc. (a) (b)		13,976		1,121,294
Microsoft Corp.		228,922		23,251,608
PTC, Inc. (a) (b)		7,544		625,398
Salesforce.com, Inc. (a) (b)		32,560		4,459,743
ServiceNow, Inc. (a)		6,344		1,129,549
Splunk, Inc. (a)		5,893		617,881
SS&C Technologies Holdings, Inc.		130,541		5,888,704
Workday, Inc. - Class A (a)		13,467		2,150,411
				42,937,115
Specialty Retail—1.2%
Lowe’s Cos., Inc.		43,185		3,988,567
National Vision Holdings, Inc. (a)		111,077		3,129,039
Ross Stores, Inc.		15,986		1,330,035
TJX Cos., Inc. (The)		107,258		4,798,723
				13,246,364
Technology Hardware, Storage & Peripherals—1.3%
Apple, Inc.		90,706		14,307,964
Textiles, Apparel & Luxury Goods—0.8%
NIKE, Inc. - Class B		59,630		4,420,968
Tapestry, Inc.		41,742		1,408,793
Under Armour, Inc. - Class A (a) (b)		78,779		1,392,025
Under Armour, Inc. - Class C (a)		101,461		1,640,624
				8,862,410
Thrifts & Mortgage Finance—0.1%
MGIC Investment Corp. (a)		114,804		1,200,850
Tobacco—1.2%
Altria Group, Inc.		154,773		7,644,239
British American Tobacco plc (ADR)		188,877		6,017,621
				13,661,860
Trading Companies & Distributors—0.1%
Air Lease Corp.		14,100		425,961
Triton International, Ltd. (b)		36,323		1,128,556
				1,554,517
Total Common Stocks (Cost $646,587,790)				656,282,903
U.S. Treasury & Government Agencies—26.3%
Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—23.6%
Fannie Mae 15 Yr. Pool 3.000%, 07/01/28		1,420,700		1,422,108
3.000%, 02/01/31		178,351		178,089
3.500%, 07/01/28		212,906		215,971
3.500%, TBA (f)		9,515,000		9,631,059
4.000%, 04/01/26		35,879		36,753
4.000%, 02/01/29		846,889		866,946
4.500%, 06/01/24		183,996		189,507
4.500%, 02/01/25		43,304		44,519
4.500%, 04/01/25		7,212		7,424
4.500%, 07/01/25		36,621		37,662
4.500%, 06/01/26		789,522		812,679
5.000%, TBA (f)		500,000		507,897
Fannie Mae 20 Yr. Pool 3.000%, 03/01/37		857,906		849,618
Fannie Mae 30 Yr. Pool 3.000%, 02/01/43		720,431		709,434
3.000%, 03/01/43		935,119		920,384
3.000%, 04/01/43		859,575		845,952
3.000%, 05/01/43		2,349,586		2,312,813
3.000%, 06/01/43		277,830		273,372
3.000%, 04/01/47		8,479,661		8,279,297
3.500%, 03/01/43		48,045		48,435
3.500%, 05/01/43		86,945		87,476
3.500%, 07/01/43		216,592		218,221
3.500%, 08/01/43		408,186		411,279
3.500%, 10/01/44		373,963		375,840
3.500%, 02/01/45		457,798		459,672
3.500%, 09/01/46		872,762		875,298
3.500%, 10/01/46		382,245		383,356
3.500%, 11/01/46		254,729		255,666
3.500%, 09/01/47		346,658		346,961
3.500%, 12/01/47		190,121		190,306
3.500%, 01/01/48		1,338,993		1,339,438
3.500%, 02/01/48		281,101		281,705
3.500%, TBA (f)		50,462,000		50,469,010
4.000%, 10/01/40		785,485		807,894
4.000%, 11/01/40		363,179		373,559
4.000%, 12/01/40		259,244		266,653
4.000%, 02/01/41		125,126		128,781
4.000%, 03/01/41		293,753		302,151
4.000%, 08/01/42		162,399		167,041
4.000%, 09/01/42		253,153		260,388
4.000%, 03/01/45		44,465		45,417
4.000%, 07/01/45		229,392		235,683
4.000%, 05/01/46		127,054		129,650
4.000%, 06/01/46		302,880		309,117
4.000%, 04/01/47		318,063		326,261
4.000%, 09/01/48		977,695		997,172
4.000%, TBA (f)		45,160,000		46,050,014
4.500%, 10/01/40		712,390		746,534
4.500%, 09/01/41		85,975		89,898
4.500%, 10/01/41		308,079		322,829
4.500%, 08/01/42		107,582		112,141
4.500%, 09/01/43		1,737,643		1,811,843
4.500%, 10/01/43		213,815		222,339

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 4.500%, 12/01/43		187,411	$	195,239
4.500%, 01/01/44		550,858		576,298
5.000%, 04/01/33		3,086		3,279
5.000%, 07/01/33		9,412		9,989
5.000%, 09/01/33		155,499		165,161
5.000%, 11/01/33		40,270		42,905
5.000%, 12/01/33		16,168		17,173
5.000%, 02/01/34		7,263		7,715
5.000%, 03/01/34		3,436		3,650
5.000%, 04/01/34		3,269		3,472
5.000%, 06/01/34		3,507		3,724
5.000%, 07/01/34		47,235		50,167
5.000%, 10/01/34		117,981		125,309
5.000%, 07/01/35		82,402		87,523
5.000%, 10/01/35		90,450		96,075
5.000%, 12/01/35		71,818		76,275
5.000%, 08/01/36		66,362		70,483
5.000%, 07/01/37		36,129		38,377
5.000%, 07/01/41		63,502		67,187
5.000%, 08/01/41		33,316		35,249
5.000%, 06/01/47		715,196		749,832
5.000%, TBA (f)		4,730,000		4,956,031
5.500%, 08/01/28		24,543		25,985
5.500%, 04/01/33		43,474		46,682
5.500%, 08/01/37		254,295		274,035
5.500%, 04/01/41		21,320		22,756
6.000%, 03/01/28		2,017		2,165
6.000%, 05/01/28		3,219		3,455
6.000%, 02/01/34		175,724		191,662
6.000%, 08/01/34		93,207		101,675
6.000%, 04/01/35		793,611		865,632
6.000%, 02/01/38		64,270		70,030
6.000%, 03/01/38		19,423		21,214
6.000%, 05/01/38		62,901		68,881
6.000%, 10/01/38		18,761		20,474
6.000%, 12/01/38		23,191		25,310
6.000%, TBA (f)		1,000,000		1,074,170
6.500%, 05/01/40		449,553		508,004
Fannie Mae ARM Pool 3.725%, 12M LIBOR + 1.750%, 03/01/41 (g)		53,090		55,279
3.840%, 12M LIBOR + 1.820%, 03/01/41 (g)		22,110		23,249
4.102%, 12M LIBOR + 1.776%, 06/01/41 (g)		154,910		161,618
4.450%, 12M LIBOR + 1.802%, 12/01/40 (g)		65,201		67,767
4.487%, 12M LIBOR + 1.825%, 09/01/41 (g)		75,654		78,855
Fannie Mae Connecticut Avenue Securities (CMO) 3.226%, 1M LIBOR + 0.720%, 01/25/31 (g)		787,787		785,919
6.056%, 1M LIBOR + 3.550%, 07/25/29 (g)		390,000		413,320
6.856%, 1M LIBOR + 4.350%, 05/25/29 (g)		780,142		844,852
7.406%, 1M LIBOR + 4.900%, 11/25/24 (g)		275,347		307,326
8.206%, 1M LIBOR + 5.700%, 04/25/28 (g)		150,773		170,212
8.506%, 1M LIBOR + 6.000%, 09/25/28 (g)		129,000		148,073
Fannie Mae Interest Strip (CMO) 2.000%, 09/25/39		414,444		388,837
4.000%, 05/25/27 (h)		309,341		27,554
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae Pool 2.390%, 09/01/28		125,000		116,726
3.025%, 11/01/29		400,000		384,025
3.140%, 11/01/27		663,453		655,520
3.170%, 11/01/29		300,000		291,695
3.170%, 02/01/30		1,300,000		1,258,283
3.175%, 01/01/30		1,400,000		1,362,530
3.180%, 12/01/29		1,000,000		969,421
3.240%, 12/01/26		81,123		82,150
3.410%, 08/01/27		475,753		479,108
3.500%, 09/01/57		2,168,293		2,159,028
3.660%, 07/01/30		500,000		506,030
3.705%, 09/01/28		698,985		717,950
3.800%, 02/01/29		1,330,000		1,356,860
3.890%, 05/01/30		99,932		103,533
3.960%, 05/01/34		42,007		43,484
4.500%, 01/01/51		1,301,035		1,352,415
Fannie Mae REMICS (CMO) Zero Coupon, 03/25/36 (i)		28,176		23,251
Zero Coupon, 06/25/36 (c) (i)		232,834		198,444
1.340%, 08/25/44 (c) (g) (h)		685,057		34,448
1.539%, 05/25/46 (c) (g) (h)		731,650		34,222
1.555%, 04/25/55 (g) (h)		721,718		35,452
1.649%, 06/25/55 (c) (g) (h)		580,556		31,022
1.750%, 12/25/42		548,860		522,972
2.000%, 08/25/43		264,147		246,974
2.500%, 06/25/28 (c) (h)		176,548		13,023
3.000%, 02/25/27 (c) (h)		454,711		32,356
3.000%, 09/25/27 (c) (h)		159,822		13,516
3.000%, 01/25/28 (c) (h)		1,073,721		86,704
3.000%, 05/25/47		442,441		438,580
3.000%, 09/25/47		1,404,259		1,400,807
3.000%, 06/25/48		1,309,319		1,284,300
3.000%, 10/25/48		1,066,501		1,047,151
3.500%, 05/25/27 (c) (h)		455,944		44,025
3.500%, 10/25/27 (c) (h)		279,720		25,991
3.500%, 05/25/30 (c) (h)		293,836		34,106
3.500%, 08/25/30 (c) (h)		93,086		9,156
3.500%, 02/25/31 (c) (h)		219,755		18,671
3.500%, 09/25/35 (c) (h)		189,594		28,140
3.500%, 04/25/46		144,365		140,926
3.500%, 10/25/46 (c) (h)		165,654		38,083
3.500%, 11/25/47		1,193,017		1,214,073
3.500%, 02/25/48		355,948		360,145
3.500%, 04/25/48		758,711		784,234
3.500%, 12/25/58		1,393,050		1,402,310
4.000%, 03/25/42 (c) (h)		129,035		19,390
4.000%, 05/25/42 (c) (h)		799,820		105,549
4.000%, 11/25/42 (c) (h)		72,612		10,985
4.500%, 07/25/27 (c) (h)		144,347		14,200
5.465%, 05/25/42 (g) (h)		75,872		8,322
5.500%, 04/25/35 (c)		323,977		360,039
5.500%, 04/25/37		125,474		137,452
5.500%, 09/25/44 (c) (h)		570,621		130,445
5.500%, 06/25/48 (c) (h)		609,250		132,274
6.000%, 01/25/42 (c) (h)		589,609		106,283
6.000%, 09/25/47 (c) (h)		384,099		90,943

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
FannieMae-ACES (CMO) 2.177%, 01/25/22 (g) (h)		1,157,741	$	35,159
3.090%, 02/25/30 (g)		635,000		609,616
3.329%, 10/25/23 (g)		490,887		502,926
Freddie Mac 15 Yr. Gold Pool 3.000%, 07/01/28		571,920		572,950
3.000%, 08/01/29		355,743		356,077
3.000%, 04/01/33		3,734,995		3,721,648
3.500%, TBA (f)		700,000		708,473
Freddie Mac 20 Yr. Gold Pool 3.000%, 11/01/36		1,183,999		1,167,940
3.000%, 01/01/37		860,789		849,115
3.500%, 08/01/34		768,595		782,413
5.000%, 03/01/27		71,002		74,319
5.000%, 02/01/28		189,656		198,506
5.000%, 03/01/28		97,208		101,744
5.000%, 05/01/28		359,211		375,972
5.000%, 05/01/30		359,639		377,375
Freddie Mac 30 Yr. Gold Pool 3.000%, 12/01/44		18,034		17,682
3.000%, 08/01/46		1,689,083		1,648,601
3.000%, 10/01/46		1,711,526		1,670,507
3.000%, 11/01/46		2,600,924		2,538,772
3.000%, 12/01/46		818,125		798,971
3.000%, 01/01/47		930,526		907,414
3.500%, 08/01/42		118,460		119,552
3.500%, 11/01/42		174,815		176,157
3.500%, 06/01/46		271,850		272,674
3.500%, 10/01/47		1,306,121		1,306,239
3.500%, 03/01/48		663,197		665,211
3.500%, TBA (f)		7,765,000		7,762,556
4.000%, 05/01/42		782,567		805,196
4.000%, 08/01/42		205,044		210,976
4.000%, 09/01/42		286,989		294,776
4.000%, 07/01/44		72,175		74,174
4.000%, 02/01/46		301,367		307,662
4.000%, 09/01/48		194,431		198,263
4.000%, TBA (f)		5,765,000		5,877,010
4.500%, 09/01/43		117,734		122,312
4.500%, 11/01/43		976,271		1,013,144
4.500%, TBA (f)		1,405,000		1,454,749
5.000%, 03/01/38		67,083		71,137
5.000%, 05/01/39		7,247		7,687
5.000%, 06/01/41		391,451		413,502
5.000%, TBA (f)		580,000		607,149
5.500%, 07/01/33		114,849		122,418
5.500%, 04/01/39		46,023		49,406
5.500%, 06/01/41		172,882		186,121
Freddie Mac ARMNon-Gold Pool 3.894%, 12M LIBOR + 1.900%, 02/01/41 (g)		90,054		94,209
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO) 0.608%, 03/25/27 (g) (h)		4,369,947		183,799
1.444%, 06/25/22 (g) (h)		1,786,914		74,950
1.627%, 03/25/22 (g) (h)		1,304,944		57,361
1.734%, 05/25/19 (g) (h)		2,078,742		5,049
4.050%, 09/25/28 (g)		450,000		474,822
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac REMICS (CMO) Zero Coupon, 11/15/36 (i)		26,003		23,792
1.750%, 10/15/42		489,174		463,530
2.500%, 05/15/28 (h)		187,629		14,338
3.000%, 03/15/28 (c) (h)		535,268		40,266
3.000%, 05/15/32 (h)		241,053		16,583
3.000%, 03/15/33 (c) (h)		179,980		21,562
3.000%, 08/15/43		1,056,000		1,023,890
3.000%, 05/15/46		553,766		547,567
3.000%, 02/15/48		1,009,848		1,012,808
3.250%, 11/15/41		286,009		285,499
3.500%, 06/15/26 (c) (h)		275,106		16,705
3.500%, 09/15/26 (h)		96,931		8,428
3.500%, 03/15/27 (h)		163,675		13,715
3.500%, 03/15/41 (c) (h)		66,545		7,908
4.000%, 07/15/27 (c) (h)		627,196		55,634
4.000%, 03/15/28 (h)		298,790		26,418
4.000%, 06/15/28 (h)		161,323		14,670
4.000%, 07/15/30 (h)		429,175		45,261
4.750%, 07/15/39		490,591		525,943
5.000%, 09/15/33 (h)		235,040		44,374
5.500%, 08/15/33		60,466		65,737
5.500%, 07/15/36		133,794		145,736
5.500%, 06/15/46		175,067		192,369
6.500%, 07/15/36		177,743		196,583
FREMF Mortgage Trust (CMO) 3.045%, 10/25/47 (144A) (g)		770,000		766,781
4.293%, 11/25/51 (144A) (g)		168,000		149,789
5.278%, 09/25/43 (144A) (g)		855,000		877,960
Ginnie Mae I 30 Yr. Pool 3.000%, 12/15/44		24,593		24,265
3.000%, 02/15/45		70,790		69,766
3.000%, 04/15/45		922,289		908,953
3.000%, 05/15/45		1,176,855		1,159,838
3.000%, 07/15/45		30,997		30,549
4.000%, 09/15/42		813,570		838,550
4.500%, 04/15/41		574,936		600,574
4.500%, 02/15/42		1,249,055		1,304,500
5.000%, 12/15/38		43,348		45,960
5.000%, 04/15/39		828,599		878,709
5.000%, 07/15/39		79,549		84,335
5.000%, 12/15/40		117,774		124,866
5.500%, 12/15/40		430,360		464,856
Ginnie Mae II 30 Yr. Pool 3.000%, TBA (f)		7,585,000		7,462,946
3.500%, 08/20/47		358,946		361,561
3.500%, TBA (f)		13,968,000		14,063,257
4.000%, 11/20/47		284,277		292,702
4.000%, 03/20/48		1,065,278		1,093,913
4.000%, TBA (f)		6,137,000		6,284,705
4.500%, 01/20/46		128,694		134,955
4.500%, 08/20/48		2,282,012		2,363,078
4.500%, 09/20/48		2,117,655		2,192,868
4.500%, TBA (f)		800,000		827,820
5.000%, 10/20/39		19,530		20,779
5.000%, TBA (f)		270,000		280,890

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Government National Mortgage Association (CMO) 0.779%, 02/16/53 (g) (h)		1,996,408	$	96,563
1.750%, 09/20/43		89,754		86,198
2.000%, 01/20/42		449,126		428,740
2.500%, 12/16/39		394,433		387,320
2.500%, 07/20/41		651,528		635,920
3.000%, 09/20/28 (h)		203,511		17,030
3.000%, 02/16/43 (h)		128,943		20,115
3.000%, 03/20/47		159,512		142,287
3.500%, 02/16/27 (h)		86,016		7,507
3.500%, 03/20/27 (h)		213,090		20,312
3.500%, 10/20/29 (h)		1,146,073		129,081
3.500%, 07/20/40 (h)		210,436		21,955
3.500%, 02/20/41 (h)		299,152		33,553
3.500%, 04/20/42 (h)		518,854		60,469
3.500%, 10/20/42 (h)		777,700		140,206
3.500%, 05/20/43 (c) (h)		110,036		18,526
3.500%, 07/20/43 (c) (h)		419,436		62,308
3.500%, 01/20/46		508,000		504,715
4.000%, 12/16/26 (h)		58,980		5,302
4.000%, 05/20/29 (h)		885,309		86,884
4.000%, 05/16/42 (c) (h)		91,411		13,705
4.000%, 03/20/43 (h)		146,327		30,930
4.000%, 01/20/44 (c) (h)		66,528		14,989
4.000%, 11/20/44 (c) (h)		1,101,317		187,650
4.000%, 03/20/47 (h)		534,600		94,173
4.000%, 07/20/47 (h)		808,892		141,434
4.500%, 04/20/45 (c) (h)		234,961		56,483
5.000%, 02/16/40 (h)		620,014		145,529
5.000%, 10/16/41 (c) (h)		344,865		52,693
5.000%, 01/16/47 (h)		155,248		34,134
5.500%, 03/20/39 (c) (h)		439,960		98,338
5.500%, 02/16/47 (h)		425,925		95,644
5.500%, 02/20/47 (h)		261,154		56,991
6.000%, 09/20/40 (h)		469,518		111,885
6.000%, 02/20/46 (h)		403,925		92,896
				267,939,285
U.S. Treasury—2.7%
U.S. Treasury Bonds 2.250%, 08/15/46		915,000		783,489
2.875%, 11/15/46 (j)		1,600,000		1,558,495
3.000%, 11/15/45 (j) (k)		1,980,000		1,979,476
3.000%, 02/15/47 (k)		1,500,000		1,498,449
3.000%, 02/15/48 (k)		2,840,000		2,829,740
3.750%, 11/15/43 (k)		7,910,000		8,949,021
U.S. Treasury Inflation Indexed Notes 0.250%, 01/15/25 (k) (l) (m)		8,565,515		8,202,868
0.750%, 07/15/28 (m)		2,811,625		2,752,317
U.S. Treasury Notes 1.625%, 11/15/22 (j) (k)		2,200,000		2,129,865
				30,683,720
Total U.S. Treasury & Government Agencies (Cost $299,211,230)				298,623,005
Corporate Bonds & Notes—12.0%
Security Description	Principal Amount*		Value
Aerospace/Defense—0.2%
Lockheed Martin Corp. 4.090%, 09/15/52		905,000		848,745
United Technologies Corp.
2.800%, 05/04/24		25,000		23,563
3.650%, 08/16/23		1,195,000		1,190,242
3.950%, 08/16/25		345,000		342,483
4.625%, 11/16/48		90,000		87,034
				2,492,067
Agriculture—0.3%
Altria Group, Inc. 2.850%, 08/09/22		1,150,000		1,103,917
3.875%, 09/16/46		530,000		404,252
BAT Capital Corp. 2.297%, 08/14/20		545,000		532,013
3.222%, 08/15/24		380,000		349,965
4.390%, 08/15/37		665,000		544,853
Imperial Brands Finance plc 3.750%, 07/21/22 (144A)		310,000		307,489
				3,242,489
Airlines—0.0%
Delta Air Lines, Inc. 3.625%, 03/15/22		185,000		181,031
3.800%, 04/19/23		280,000		275,505
				456,536
Auto Manufacturers—0.3%
Daimler Canada Finance, Inc. 2.908%, 3M CDOR + 0.830%, 07/08/19 (CAD) (c) (g)		635,000		463,459
Ford Credit Canada Co. 2.939%, 02/19/19 (CAD)		270,000		197,769
Ford Motor Co. 4.750%, 01/15/43		130,000		100,634
5.291%, 12/08/46		140,000		115,071
Ford Motor Credit Co. LLC 3.815%, 11/02/27 (b)		200,000		168,837
General Motors Co. 5.400%, 04/01/48		460,000		392,225
5.950%, 04/01/49		205,000		185,067
6.250%, 10/02/43		195,000		182,978
6.750%, 04/01/46		250,000		242,279
General Motors Financial Co., Inc. 3.678%, 3M LIBOR + 1.270%, 10/04/19 (g)		100,000		100,406
3.700%, 05/09/23		300,000		285,411
3.950%, 04/13/24		165,000		156,691
3.996%, 3M LIBOR + 1.560%, 01/15/20 (b) (g)		200,000		200,936
Toyota Motor Credit Corp. 2.754%, 3M LIBOR + 0.140%, 11/14/19 (g)		100,000		99,849
Volkswagen Group of America Finance LLC 3.875%, 11/13/20 (144A)		705,000		708,302
Volkswagen International Finance NV 3.250%, 01/21/19 (EUR)		175,000		200,831
				3,800,745

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Auto Parts & Equipment—0.0%
Goodyear Tire & Rubber Co. (The) 5.000%, 05/31/26		60,000	$	54,000
Banks—3.5%
Banco Bilbao Vizcaya Argentaria S.A. 6.125%, 5Y USD Swap + 3.870%, 11/16/27 (b) (g)		1,200,000		1,005,000
8.875%,-1 x 5Y EUR Swap + 9.177%, 04/14/21 (EUR) (g)		200,000		248,192
Banco de Sabadell S.A. 6.125%, 5Y EUR Swap + 6.051%, 11/23/22 (EUR) (g)		200,000		206,521
6.500%, 5Y EUR Swap + 6.414%, 05/18/22 (EUR) (g)		600,000		635,047
Banco Santander S.A. 3.800%, 02/23/28		600,000		533,997
Bank of America Corp. 3.124%, 3M LIBOR + 1.160%, 01/20/23 (g)		805,000		791,418
3.366%, 3M LIBOR + 0.810%, 01/23/26 (g)		1,255,000		1,200,402
3.419%, 3M LIBOR + 1.040%, 12/20/28 (g)		118,000		110,295
3.705%, 3M LIBOR + 1.512%, 04/24/28 (g)		1,045,000		1,002,989
4.000%, 04/01/24		133,000		133,728
4.000%, 01/22/25		595,000		579,858
4.125%, 01/22/24		265,000		268,593
7.750%, 05/14/38		630,000		815,570
Bank of Nova Scotia (The) 3.371%, 3M LIBOR + 0.620%, 12/05/19 (g)		175,000		175,034
Barclays Bank plc 2.650%, 01/11/21		200,000		195,819
Barclays plc 8.000%, 5Y EUR Swap + 6.750%, 12/15/20 (EUR) (g)		325,000		394,264
BNP Paribas S.A. 2.950%, 05/23/22 (144A)		220,000		212,009
3.375%, 01/09/25 (144A)		615,000		579,005
4.400%, 08/14/28 (144A)		405,000		395,536
5.125%, 5Y USD Swap + 2.838%, 11/15/27 (144A) (g)		325,000		281,125
7.625%, 5Y USD Swap + 6.314%, 03/30/21 (144A) (g)		390,000		397,313
BPCE S.A. 2.750%, 01/11/23 (144A)		270,000		258,987
3.000%, 05/22/22 (144A)		255,000		246,315
CaixaBank S.A. 6.750%, 5Y EUR Swap + 6.498%, 06/13/24 (EUR) (g)		200,000		231,250
Citigroup, Inc. 2.700%, 10/27/22		265,000		255,433
3.200%, 10/21/26		660,000		609,510
3.204%, 3M LIBOR + 0.790%, 01/10/20 (g)		200,000		200,266
3.520%, 3M LIBOR + 1.151%, 10/27/28 (g)		230,000		214,621
3.740%, 3M LIBOR + 1.100%, 05/17/24 (g)		680,000		663,415
4.075%, 3M LIBOR + 1.192%, 04/23/29 (g)		165,000		161,030
4.450%, 09/29/27		510,000		491,764
4.650%, 07/30/45		9,000		8,778
4.750%, 05/18/46		238,000		219,770
Credit Agricole S.A. 4.000%, 5Y USD Swap + 1.644%, 01/10/33 (144A) (g)		380,000		348,184
8.125%, 5Y USD Swap + 6.185%, 12/23/25 (144A) (g)		725,000		744,937
Credit Suisse Group AG 6.250%, 5Y USD Swap + 3.455%, 12/18/24 (144A) (g)		1,320,000		1,246,819
7.500%, 5Y USD Swap + 4.600%, 07/17/23 (144A) (g)		200,000		195,000
Danske Bank A/S 5.875%, 5Y EUR Swap + 5.471%, 04/06/22 (EUR) (g)		200,000		229,337
Banks—(Continued)
Goldman Sachs Group, Inc. (The) 2.876%, 3M LIBOR + 0.821%, 10/31/22 (g)		255,000		247,647
2.905%, 3M LIBOR + 0.990%, 07/24/23 (g)		1,085,000		1,033,343
3.579%, 3M LIBOR + 0.800%, 12/13/19 (g)		100,000		100,019
3.814%, 3M LIBOR + 1.158%, 04/23/29 (g)		735,000		686,627
4.017%, 3M LIBOR + 1.373%, 10/31/38 (g)		820,000		721,345
4.223%, 3M LIBOR + 1.301%, 05/01/29 (g)		45,000		43,333
6.250%, 02/01/41		430,000		490,986
6.750%, 10/01/37		410,000		463,461
HSBC Holdings plc 2.950%, 05/25/21		255,000		251,404
3.400%, 03/08/21		765,000		762,735
3.600%, 05/25/23 (b)		255,000		253,529
4.583%, 3M LIBOR + 1.535%, 06/19/29 (g)		260,000		257,875
6.000%, 5Y USD ICE Swap + 3.746%, 05/22/27 (g)		575,000		517,776
6.250%, 5Y USD ICE Swap + 3.453%, 03/23/23 (g)		450,000		421,875
ING Bank NV 3.954%, 3M LIBOR + 1.130%, 03/22/19 (g)		500,000		500,866
Intesa Sanpaolo S.p.A. 3.375%, 01/12/23 (144A)		215,000		199,155
3.875%, 01/12/28 (144A)		295,000		252,086
7.700%, 5Y USD Swap + 5.462%, 09/17/25 (144A) (b) (g)		650,000		581,750
7.750%, 5Y EUR Swap + 7.192%, 01/11/27 (EUR) (g)		400,000		479,356
JPMorgan Chase & Co. 3.220%, 3M LIBOR + 1.155%, 03/01/25 (g)		550,000		531,253
3.509%, 3M LIBOR + 0.945%, 01/23/29 (g)		525,000		497,247
3.717%, 3M LIBOR + 1.230%, 10/24/23 (g)		325,000		324,918
3.797%, 3M LIBOR + 0.890%, 07/23/24 (g)		435,000		435,758
4.005%, 3M LIBOR + 1.120%, 04/23/29 (g)		410,000		403,233
5.600%, 07/15/41		30,000		33,952
Landsbanki Islands Zero Coupon, 08/25/20 (c) (d) (e) (n)		320,000		0
Morgan Stanley 2.500%, 04/21/21		680,000		666,321
2.750%, 05/19/22		645,000		627,478
3.125%, 07/27/26		180,000		166,137
3.217%, 3M LIBOR + 0.740%, 07/23/19 (g)		100,000		99,993
3.337%, 3M LIBOR + 0.850%, 01/24/19 (g)		260,000		260,071
3.591%, 3M LIBOR + 1.340%, 07/22/28 (g)		1,250,000		1,181,428
3.625%, 01/20/27		685,000		651,373
3.649%, 3M LIBOR + 1.140%, 01/27/20 (g)		50,000		50,205
4.000%, 07/23/25		280,000		276,357
4.350%, 09/08/26		95,000		92,368
5.000%, 11/24/25		322,000		328,482
Santander Holdings USA, Inc. 3.700%, 03/28/22		365,000		358,449
Societe Generale S.A. 7.375%, 5Y USD Swap + 6.238%, 09/13/21 (144A) (g)		650,000		632,938
7.875%, 5Y USD Swap + 4.979%, 12/18/23 (144A) (g)		200,000		197,750
Standard Chartered plc 7.500%, 5Y USD Swap + 6.301%, 04/02/22 (g)		400,000		401,000
UBS AG 2.450%, 12/01/20 (144A)		465,000		456,311
UBS Group AG 5.750%, 5Y EUR Swap + 5.287%, 02/19/22 (EUR) (g)		250,000		303,517
6.875%, 5Y USD ICE Swap + 5.497%, 03/22/21 (g)		450,000		450,000

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Banks—(Continued)
UBS Group AG 7.000%, 5Y USD Swap + 4.866%, 02/19/25 (g)		200,000	$	203,500
7.125%, 5Y USD Swap + 5.464%, 02/19/20 (g)		270,000		270,675
UBS Group Funding Switzerland AG 2.650%, 02/01/22 (144A)		420,000		406,490
UniCredit S.p.A. 5.375%, 3M LIBOR + 0.750%, 06/03/25 (EUR) (g)		200,000		192,180
6.625%, 5Y EUR Swap + 6.387%, 06/03/23 (EUR) (g)		575,000		618,747
Wells Fargo & Co. 2.625%, 07/22/22		595,000		573,706
3.000%, 04/22/26		310,000		289,016
3.000%, 10/23/26		200,000		185,244
3.069%, 01/24/23		960,000		934,993
3.584%, 3M LIBOR + 1.310%, 05/22/28 (g)		705,000		677,232
4.400%, 06/14/46		290,000		268,221
4.900%, 11/17/45		290,000		282,867
				39,081,709
Beverages—0.4%
Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. 3.650%, 02/01/26 (144A)		680,000		642,763
4.700%, 02/01/36 (144A)		50,000		46,560
Anheuser-Busch InBev Finance, Inc. 3.300%, 02/01/23		870,000		847,087
Anheuser-Busch InBev Worldwide, Inc. 3.500%, 01/12/24		585,000		571,540
3.750%, 07/15/42		426,000		336,460
4.600%, 04/15/48		265,000		237,895
4.750%, 04/15/58		440,000		383,590
Constellation Brands, Inc. 2.650%, 11/07/22		475,000		454,803
2.700%, 05/09/22		80,000		77,267
3.600%, 02/15/28		320,000		294,875
4.400%, 11/15/25		300,000		300,729
4.500%, 05/09/47		50,000		45,698
4.750%, 12/01/25		433,000		442,417
				4,681,684
Biotechnology—0.1%
Amgen, Inc. 2.650%, 05/11/22		295,000		288,225
Baxalta, Inc. 3.600%, 06/23/22		17,000		16,870
Celgene Corp. 4.625%, 05/15/44		20,000		17,591
Gilead Sciences, Inc. 3.250%, 09/01/22		135,000		134,676
4.150%, 03/01/47		1,110,000		1,023,915
				1,481,277
Building Materials—0.0%
Standard Industries, Inc. 5.000%, 02/15/27 (144A)		10,000		8,750
6.000%, 10/15/25 (144A)		220,000		211,002
				219,752
Chemicals—0.4%
CF Industries, Inc. 4.950%, 06/01/43		95,000		73,625
Chemours Co. (The) 5.375%, 05/15/27		60,000		54,000
DowDuPont, Inc. 4.205%, 11/15/23		785,000		802,653
4.725%, 11/15/28 (b)		785,000		814,138
LyondellBasell Industries NV 4.625%, 02/26/55		230,000		193,983
Methanex Corp. 4.250%, 12/01/24		325,000		315,413
5.650%, 12/01/44		120,000		107,769
Olin Corp. 5.125%, 09/15/27		60,000		55,200
SABIC Capital II B.V. 4.000%, 10/10/23 (144A)		560,000		557,200
Sherwin-Williams Co. (The) 3.450%, 06/01/27		395,000		368,413
Syngenta Finance NV 4.892%, 04/24/25 (144A)		385,000		364,188
5.182%, 04/24/28 (144A)		725,000		672,707
Versum Materials, Inc. 5.500%, 09/30/24 (144A)		60,000		59,400
				4,438,689
Commercial Services—0.2%
Acwa Power Management & Investments One, Ltd. 5.950%, 12/15/39 (144A)		1,269,000		1,191,997
IHS Markit, Ltd. 4.125%, 08/01/23		1,225,000		1,212,505
United Rentals North America, Inc. 4.875%, 01/15/28		65,000		57,038
5.500%, 07/15/25		110,000		103,675
				2,565,215
Computers—0.1%
Apple, Inc. 3.450%, 02/09/45		215,000		190,654
Hewlett Packard Enterprise Co. 6.350%, 10/15/45		215,000		200,908
IBM Credit LLC 3.177%, 3M LIBOR + 0.470%, 11/30/20 (g)		515,000		513,822
Western Digital Corp. 4.750%, 02/15/26		790,000		685,325
				1,590,709
Distribution/Wholesale—0.0%
HD Supply, Inc. 5.375%, 10/15/26 (144A)		50,000		48,430
Diversified Financial Services—0.2%
American Express Co. 3.400%, 02/27/23		500,000		495,319
GTP Acquisition Partners I LLC 3.482%, 06/16/50 (144A)		1,355,000		1,337,712

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Diversified Financial Services—(Continued)
Navient Corp. 5.875%, 03/25/21		20,000	$	19,150
				1,852,181
Electric—0.7%
AES Corp. 4.000%, 03/15/21		75,000		73,688
4.500%, 03/15/23		45,000		43,875
4.875%, 05/15/23		20,000		19,550
5.125%, 09/01/27		10,000		9,600
Berkshire Hathaway Energy Co. 3.250%, 04/15/28		245,000		233,206
DTE Energy Co. 1.500%, 10/01/19		315,000		310,334
Duke Energy Carolinas LLC 4.250%, 12/15/41		275,000		276,058
Duke Energy Florida LLC 3.400%, 10/01/46		370,000		319,279
Duke Energy Progress LLC 4.375%, 03/30/44		320,000		326,310
Exelon Corp. 2.450%, 04/15/21		80,000		78,240
2.850%, 06/15/20		530,000		525,720
Fortis, Inc. 2.100%, 10/04/21		135,000		129,779
Georgia Power Co. 2.000%, 09/08/20		1,043,000		1,019,127
IPALCO Enterprises, Inc. 3.700%, 09/01/24		335,000		326,097
Oncor Electric Delivery Co. LLC 5.750%, 03/15/29 (144A)		110,000		128,462
Pacific Gas & Electric Co. 2.950%, 03/01/26		165,000		135,727
3.300%, 12/01/27		965,000		787,945
3.400%, 08/15/24		444,000		385,020
3.500%, 06/15/25		145,000		124,326
3.750%, 02/15/24		139,000		123,296
5.125%, 11/15/43		30,000		25,889
5.400%, 01/15/40		5,000		4,439
6.050%, 03/01/34		560,000		519,467
Sempra Energy 2.400%, 02/01/20		340,000		335,390
South Carolina Electric & Gas Co. 3.500%, 08/15/21		125,000		125,346
4.250%, 08/15/28		140,000		145,068
4.500%, 06/01/64		475,000		439,773
Southern California Edison Co. 3.700%, 08/01/25		95,000		94,806
4.125%, 03/01/48		55,000		52,147
Southern Co. (The) 2.950%, 07/01/23		130,000		125,596
3.250%, 07/01/26		335,000		313,973
Vistra Operations Co. LLC 5.500%, 09/01/26 (144A)		475,000		457,187
				8,014,720
					��
Electronics—0.0%
Fortive Corp. 2.350%, 06/15/21		275,000		268,132
Sensata Technologies B.V. 5.000%, 10/01/25 (144A)		120,000		112,800
				380,932
Engineering & Construction—0.2%
Fluor Corp. 4.250%, 09/15/28		545,000		531,247
Mexico City Airport Trust
3.875%, 04/30/28 (144A)		200,000		175,700
SBA Tower Trust 3.168%, 04/11/47 (144A)		995,000		977,927
				1,684,874
Entertainment—0.0%
WMG Acquisition Corp.
4.875%, 11/01/24 (144A)		120,000		113,700
5.000%, 08/01/23 (144A)		40,000		38,900
				152,600
Food—0.2%
Conagra Brands, Inc.
3.219%, 3M LIBOR + 0.750%, 10/22/20 (g)		155,000		154,564
3.800%, 10/22/21		100,000		100,031
4.600%, 11/01/25		55,000		55,199
5.300%, 11/01/38		85,000		80,405
Kraft Heinz Foods Co.
4.375%, 06/01/46		320,000		263,966
4.625%, 01/30/29		925,000		915,135
Sysco Corp. 2.500%, 07/15/21		405,000		396,795
TreeHouse Foods, Inc. 6.000%, 02/15/24 (144A) (b)		60,000		59,400
				2,025,495
Food Service—0.0%
Aramark Services, Inc.
4.750%, 06/01/26		15,000		14,100
5.000%, 02/01/28 (144A)		125,000		116,562
				130,662
Forest Products & Paper—0.0%
Suzano Austria GmbH 6.000%, 01/15/29 (144A)		200,000		204,100
Gas—0.0%
AmeriGas Partners L.P. / AmeriGas Finance Corp. 5.875%, 08/20/26		95,000		86,688
Healthcare-Products—0.2%
Becton Dickinson & Co.
3.363%, 06/06/24		925,000		888,376
3.700%, 06/06/27		550,000		519,958

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Healthcare-Products—(Continued)
Boston Scientific Corp. 4.000%, 03/01/28		505,000	$	490,460
Thermo Fisher Scientific, Inc. 3.000%, 04/15/23		180,000		175,109
				2,073,903
Healthcare-Services—0.3%
Aetna, Inc. 2.800%, 06/15/23		175,000		166,416
Anthem, Inc.
3.500%, 08/15/24		695,000		681,655
3.650%, 12/01/27		525,000		501,893
4.625%, 05/15/42		170,000		164,067
CHS/Community Health Systems, Inc.
5.125%, 08/01/21 (b)		110,000		102,025
6.250%, 03/31/23		30,000		27,264
Halfmoon Parent, Inc. 3.138%, 3M LIBOR + 0.350%, 03/17/20 (144A) (g)		200,000		198,717
HCA, Inc. 4.750%, 05/01/23		20,000		19,700
Tenet Healthcare Corp. 6.000%, 10/01/20		75,000		75,938
UnitedHealth Group, Inc.
3.500%, 06/15/23		280,000		282,397
3.700%, 12/15/25		200,000		202,092
3.750%, 07/15/25		240,000		243,053
4.250%, 04/15/47		110,000		109,200
4.250%, 06/15/48		160,000		160,146
4.750%, 07/15/45		130,000		137,727
				3,072,290
Home Builders—0.0%
Lennar Corp. 4.750%, 11/29/27		125,000		112,812
PulteGroup, Inc. 5.500%, 03/01/26		60,000		57,750
Toll Brothers Finance Corp. 4.875%, 11/15/25		130,000		121,550
				292,112
Insurance—0.1%
CNO Financial Group, Inc. 5.250%, 05/30/25		175,000		166,687
Genworth Holdings, Inc. 4.900%, 08/15/23		90,000		74,475
Massachusetts Mutual Life Insurance Co. 8.875%, 06/01/39 (144A)		52,000		78,023
MGIC Investment Corp. 5.750%, 08/15/23		90,000		89,550
Willis North America, Inc. 3.600%, 05/15/24		210,000		205,021
				613,756
Internet—0.2%
Alibaba Group Holding, Ltd.
3.400%, 12/06/27		810,000		749,416
4.200%, 12/06/47		200,000		177,580
Amazon.com, Inc.
2.800%, 08/22/24		155,000		150,642
3.875%, 08/22/37		600,000		583,252
Tencent Holdings, Ltd.
2.985%, 01/19/23 (144A)		530,000		515,047
3.595%, 01/19/28 (144A)		250,000		235,030
				2,410,967
Iron/Steel—0.1%
ArcelorMittal
6.125%, 06/01/25 (b)		110,000		115,176
Commercial Metals Co. 5.375%, 07/15/27		60,000		53,700
Steel Dynamics, Inc.
4.125%, 09/15/25 (b)		165,000		151,594
5.500%, 10/01/24		65,000		64,350
Vale Overseas, Ltd.
6.250%, 08/10/26		880,000		950,400
6.875%, 11/10/39		75,000		86,625
				1,421,845
Leisure Time—0.0%
VOC Escrow, Ltd. 5.000%, 02/15/28 (144A)		30,000		27,675
Lodging—0.0%
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. 5.500%, 03/01/25 (144A)		5,000		4,663
Machinery-Construction & Mining—0.0%
BWX Technologies, Inc. 5.375%, 07/15/26 (144A)		30,000		28,866
Oshkosh Corp. 5.375%, 03/01/25		75,000		74,812
				103,678
Machinery-Diversified—0.0%
John Deere Canada Funding, Inc. 1.750%, 01/28/19 (CAD)		75,000		54,929
Media—0.8%
CCO Holdings LLC / CCO Holdings Capital Corp. 5.125%, 05/01/27 (144A)		15,000		13,971
Charter Communications Operating LLC / Charter Communications Operating Capital Corp.
4.464%, 07/23/22		655,000		661,261
4.908%, 07/23/25		145,000		144,116
5.750%, 04/01/48		480,000		450,022
6.484%, 10/23/45		1,245,000		1,284,956
Comcast Corp.
2.350%, 01/15/27		65,000		58,174
3.150%, 03/01/26		405,000		387,702

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Media—(Continued)
Comcast Corp.
3.200%, 07/15/36		100,000	$	86,119
3.950%, 10/15/25		210,000		212,582
4.049%, 11/01/52		395,000		355,058
4.150%, 10/15/28		190,000		193,050
4.250%, 10/15/30		210,000		212,525
4.600%, 10/15/38		240,000		242,620
4.950%, 10/15/58		195,000		198,553
COX Communications, Inc.
2.950%, 06/30/23 (144A)		115,000		110,650
3.150%, 08/15/24 (144A)		868,000		834,955
4.800%, 02/01/35 (144A)		25,000		22,815
Discovery Communications LLC
3.800%, 03/13/24		364,000		355,069
3.950%, 06/15/25 (144A)		217,000		208,536
4.900%, 03/11/26 (b)		190,000		191,488
DISH DBS Corp. 5.875%, 11/15/24 (b)		130,000		104,650
Liberty Interactive LLC
8.250%, 02/01/30 (b)		130,000		126,750
TEGNA, Inc. 6.375%, 10/15/23		5,000		5,013
Time Warner Cable LLC
4.500%, 09/15/42		400,000		321,940
7.300%, 07/01/38		45,000		48,829
8.250%, 04/01/19		231,000		233,593
Time Warner, Inc. 3.875%, 01/15/26		70,000		66,889
Viacom, Inc.
4.250%, 09/01/23		1,190,000		1,185,281
4.375%, 03/15/43		203,000		161,124
5.875%, 3M LIBOR + 3.895%, 02/28/57 (g)		10,000		9,085
6.250%, 3M LIBOR + 3.899%, 02/28/57 (g)		15,000		13,998
Videotron, Ltd. 5.375%, 06/15/24 (144A)		145,000		143,550
Warner Media LLC
2.950%, 07/15/26		70,000		62,615
3.800%, 02/15/27		520,000		488,180
				9,195,719
Mining—0.1%
Anglo American Capital plc
4.750%, 04/10/27 (144A)		200,000		191,646
4.875%, 05/14/25 (144A)		520,000		509,419
FMG Resources August 2006 Pty, Ltd. 5.125%, 05/15/24 (144A) (b)		60,000		55,200
Glencore Finance Europe, Ltd. 6.500%, 02/27/19 (GBP)		150,000		192,520
Glencore Funding LLC
2.500%, 01/15/19		105,000		104,956
3.796%, 3M LIBOR + 1.360%, 01/15/19 (g)		240,000		240,038
Kaiser Aluminum Corp. 5.875%, 05/15/24		140,000		136,850
				1,430,629
Miscellaneous Manufacturing—0.0%
Ingersoll-Rand Global Holding Co., Ltd. 2.900%, 02/21/21		225,000		222,868
Office/Business Equipment—0.0%
Pitney Bowes, Inc. 4.700%, 04/01/23		195,000		172,087
Oil & Gas—0.4%
Anadarko Petroleum Corp. 4.500%, 07/15/44		5,000		4,242
Antero Resources Corp. 5.625%, 06/01/23		60,000		57,000
Canadian Natural Resources, Ltd. 3.850%, 06/01/27		715,000		674,847
Continental Resources, Inc.
4.900%, 06/01/44		10,000		8,849
5.000%, 09/15/22		44,000		43,686
Encana Corp. 3.900%, 11/15/21		300,000		300,241
Hess Corp.
4.300%, 04/01/27		790,000		723,532
6.000%, 01/15/40		10,000		9,175
Kerr-McGee Corp.
6.950%, 07/01/24		400,000		445,913
Marathon Oil Corp. 3.850%, 06/01/25		130,000		122,008
Marathon Petroleum Corp. 3.800%, 04/01/28 (144A)		190,000		178,410
MEG Energy Corp. 6.500%, 01/15/25 (144A)		65,000		65,975
Petroleos Mexicanos 2.500%, 04/10/19 (CHF)		100,000		102,313
3.750%, 03/15/19 (EUR)		100,000		115,259
6.500%, 01/23/29		65,000		60,612
6.750%, 09/21/47		351,000		290,238
8.000%, 05/03/19		150,000		151,650
Phillips 66 3.900%, 03/15/28		230,000		222,310
QEP Resources, Inc. 5.250%, 05/01/23		80,000		70,800
SM Energy Co. 6.125%, 11/15/22		55,000		51,975
6.750%, 09/15/26 (b)		15,000		13,425
Sunoco LP / Sunoco Finance Corp. 5.500%, 02/15/26		60,000		56,850
Tullow Oil plc 7.000%, 03/01/25 (144A)		500,000		463,750
Valero Energy Corp. 3.400%, 09/15/26		350,000		320,728
WPX Energy, Inc. 5.250%, 09/15/24		125,000		113,125
YPF S.A. 16.500%, 05/09/22 (144A) (ARS) (o)		19,392,845		334,720
				5,001,633

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Packaging & Containers—0.1%
Owens-Brockway Glass Container, Inc. 5.875%, 08/15/23 (144A)		150,000	$	150,375
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 5.125%, 07/15/23 (144A)		75,000		71,438
Westrock Co. 4.650%, 03/15/26 (144A)		540,000		548,507
				770,320
Pharmaceuticals—0.8%
Allergan Funding SCS 3.450%, 03/15/22		245,000		241,241
Bausch Health Cos., Inc. 7.000%, 03/15/24 (144A)		30,000		30,300
Bayer U.S. Finance LLC 4.250%, 12/15/25 (144A)		850,000		827,656
Cardinal Health, Inc. 2.616%, 06/15/22		440,000		423,847
Cigna Corp. 4.125%, 11/15/25 (144A)		340,000		339,679
4.375%, 10/15/28 (144A)		1,810,000		1,821,204
CVS Health Corp. 3.125%, 03/09/20		470,000		469,010
3.875%, 07/20/25		324,000		315,879
4.100%, 03/25/25		815,000		807,847
5.050%, 03/25/48		345,000		335,996
5.125%, 07/20/45		315,000		307,011
Elanco Animal Health, Inc. 3.912%, 08/27/21 (144A)		311,000		312,922
4.272%, 08/28/23 (144A)		310,000		309,718
GlaxoSmithKline Capital, Inc. 3.625%, 05/15/25		620,000		624,230
Mylan NV 3.150%, 06/15/21		220,000		215,437
3.750%, 12/15/20		325,000		324,783
3.950%, 06/15/26		213,000		194,227
Mylan, Inc. 4.550%, 04/15/28 (144A)		240,000		223,816
5.200%, 04/15/48 (144A)		125,000		103,192
Shire Acquisitions Investments Ireland DAC 2.400%, 09/23/21		355,000		343,264
Teva Pharmaceutical Finance Netherlands III B.V. 2.800%, 07/21/23		175,000		150,709
Valeant Pharmaceuticals International, Inc. 6.500%, 03/15/22 (144A)		65,000		65,428
				8,787,396
Pipelines—0.4%
Andeavor Logistics L.P. / Tesoro Logistics Finance Corp. 4.250%, 12/01/27		415,000		391,985
6.250%, 10/15/22		41,000		41,820
DCP Midstream Operating L.P. 3.875%, 03/15/23		20,000		18,750
4.950%, 04/01/22		26,000		25,740
5.600%, 04/01/44		50,000		43,250
Pipelines—(Continued)
Energy Transfer L.P. 5.500%, 06/01/27		120,000		117,000
Energy Transfer Operating L.P. 4.200%, 09/15/23		70,000		68,984
Energy Transfer Partners L.P. 5.950%, 10/01/43		20,000		19,036
EQT Midstream Partners L.P. 4.750%, 07/15/23		215,000		213,993
5.500%, 07/15/28		270,000		264,589
MPLX L.P. 4.000%, 03/15/28		180,000		168,805
4.125%, 03/01/27		340,000		323,891
4.700%, 04/15/48		105,000		91,098
5.200%, 03/01/47		65,000		59,907
Sabine Pass Liquefaction LLC 4.200%, 03/15/28		50,000		47,854
Sunoco Logistics Partners Operations L.P. 5.300%, 04/01/44		35,000		30,940
5.350%, 05/15/45		35,000		31,015
Texas Eastern Transmission L.P. 2.800%, 10/15/22 (144A)		420,000		403,870
3.500%, 01/15/28 (144A)		100,000		94,469
TransCanada PipeLines, Ltd. 4.750%, 05/15/38		140,000		135,087
6.100%, 06/01/40		40,000		44,392
Transcontinental Gas Pipe Line Co. LLC 4.000%, 03/15/28		105,000		102,734
Valero Energy Partners L.P. 4.500%, 03/15/28		455,000		445,778
Western Gas Partners L.P. 4.500%, 03/01/28		485,000		453,602
4.750%, 08/15/28		290,000		276,219
5.500%, 08/15/48		25,000		22,283
Williams Partners L.P. 4.300%, 03/04/24		105,000		104,627
				4,041,718
Real Estate Investment Trusts—0.1%
Crown Castle International Corp. 3.150%, 07/15/23		315,000		302,786
3.200%, 09/01/24		110,000		104,109
Equinix, Inc. 5.875%, 01/15/26		135,000		136,012
GLP Capital L.P. / GLP Financing II, Inc. 5.300%, 01/15/29		290,000		283,629
5.375%, 04/15/26		60,000		59,341
				885,877
Retail—0.2%
Dollar Tree, Inc. 3.149%, 3M LIBOR + 0.700%, 04/17/20 (g)		90,000		89,426
Home Depot, Inc. (The) 3.500%, 09/15/56		220,000		185,299
Lowe’s Cos., Inc. 3.700%, 04/15/46		60,000		49,001

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Retail—(Continued)
McDonald’s Corp. 3.350%, 04/01/23		380,000	$	378,056
Starbucks Corp. 3.800%, 08/15/25		265,000		262,182
4.000%, 11/15/28		160,000		158,130
Suburban Propane Partners L.P. / Suburban Energy Finance Corp. 5.875%, 03/01/27		75,000		66,375
Walmart, Inc. 3.400%, 06/26/23		925,000		934,475
				2,122,944
Semiconductors—0.4%
Broadcom Corp. / Broadcom Cayman Finance, Ltd. 2.375%, 01/15/20		500,000		493,701
3.125%, 01/15/25		155,000		139,987
3.625%, 01/15/24		1,285,000		1,215,657
3.875%, 01/15/27		450,000		403,963
Entegris, Inc. 4.625%, 02/10/26 (144A)		25,000		23,000
Intel Corp. 4.100%, 05/19/46		185,000		181,409
Microchip Technology, Inc. 4.333%, 06/01/23 (144A)		380,000		370,636
NXP B.V. / NXP Funding LLC 4.875%, 03/01/24 (144A)		1,175,000		1,180,158
				4,008,511
Software—0.2%
CDK Global, Inc. 5.875%, 06/15/26		5,000		5,020
Fidelity National Information Services, Inc. 4.250%, 05/15/28		195,000		193,832
First Data Corp. 5.000%, 01/15/24 (144A)		40,000		38,500
5.375%, 08/15/23 (144A)		90,000		88,425
Microsoft Corp. 3.700%, 08/08/46		330,000		317,686
3.950%, 08/08/56		400,000		390,937
MSCI, Inc. 5.250%, 11/15/24 (144A)		75,000		74,625
5.750%, 08/15/25 (144A)		65,000		65,488
Open Text Corp. 5.875%, 06/01/26 (144A)		15,000		14,700
Oracle Corp. 4.000%, 11/15/47		195,000		181,727
Quintiles IMS, Inc. 4.875%, 05/15/23 (144A)		95,000		93,100
salesforce.com, Inc. 3.250%, 04/11/23		250,000		251,270
3.700%, 04/11/28		170,000		171,000
				1,886,310
Telecommunications—0.7%
AT&T, Inc. 3.086%, 3M LIBOR + 0.650%, 01/15/20 (g)		155,000		154,730
4.100%, 02/15/28		260,000		250,108
4.250%, 03/01/27 (b)		150,000		146,920
4.300%, 02/15/30		711,000		672,341
4.750%, 05/15/46		390,000		347,108
5.150%, 03/15/42		164,000		153,372
Nokia Oyj 4.375%, 06/12/27		260,000		241,800
6.625%, 05/15/39		110,000		111,650
Sprint Communications, Inc. 7.000%, 03/01/20 (144A)		90,000		92,250
Sprint Corp. 7.125%, 06/15/24		100,000		99,106
Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC 5.152%, 03/20/28 (144A)		530,000		520,725
Telecom Italia Capital S.A. 6.000%, 09/30/34		45,000		38,925
7.721%, 06/04/38		50,000		49,656
Telecom Italia S.p.A. 5.303%, 05/30/24 (144A)		925,000		878,750
Telefonica Emisiones S.A.U. 4.665%, 03/06/38		150,000		135,835
4.895%, 03/06/48		335,000		296,058
5.213%, 03/08/47		150,000		137,481
Verizon Communications, Inc. 3.203%, 3M LIBOR + 0.550%, 05/22/20 (g)		155,000		154,662
4.400%, 11/01/34		535,000		516,140
4.500%, 08/10/33		775,000		765,626
4.522%, 09/15/48		365,000		342,422
4.862%, 08/21/46		90,000		88,567
5.012%, 08/21/54		213,000		206,113
5.250%, 03/16/37		425,000		443,171
Vodafone Group plc 4.375%, 05/30/28 (b)		815,000		791,076
				7,634,592
Transportation—0.1%
CSX Corp. 3.250%, 06/01/27		620,000		583,537
FedEx Corp. 4.550%, 04/01/46		30,000		27,302
4.750%, 11/15/45		125,000		118,008
Union Pacific Corp. 4.375%, 09/10/38		700,000		692,772
				1,421,619
Trucking & Leasing—0.0%
DAE Funding LLC 4.500%, 08/01/22 (144A)		15,000		14,400
5.000%, 08/01/24 (144A)		15,000		14,513
				28,913
Total Corporate Bonds & Notes (Cost $143,209,307)				136,372,508

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—8.7%

Security Description	Principal Amount*		Value
Asset-Backed - Automobile—0.2%
CIG Auto Receivables Trust 2.710%, 05/15/23 (144A)		156,815	$	155,863
Credit Acceptance Auto Loan Trust 2.650%, 06/15/26 (144A)		545,000		539,981
Skopos Auto Receivables Trust 3.190%, 09/15/21 (144A) (o)		516,415		515,986
Westlake Automobile Receivables Trust 3.280%, 12/15/22 (144A)		1,015,000		1,002,176
				2,214,006
Asset-Backed - Home Equity—0.2%
GSAA Home Equity Trust 2.556%, 1M LIBOR + 0.050%, 12/25/46 (c) (g)		87,006		58,294
2.606%, 1M LIBOR + 0.100%, 03/25/37 (c) (g)		911,989		435,135
2.746%, 1M LIBOR + 0.240%, 11/25/36 (c) (g)		264,060		148,197
2.806%, 1M LIBOR + 0.300%, 03/25/36 (c) (g)		951,667		680,481
5.985%, 06/25/36 (c) (g)		552,682		253,553
Morgan Stanley ABS Capital I, Inc. Trust 2.656%, 1M LIBOR + 0.150%, 06/25/36 (c) (g)		14,139		11,769
Renaissance Home Equity Loan Trust 6.120%, 11/25/36 (c) (p)		250,014		146,357
Soundview Home Loan Trust 2.756%, 1M LIBOR + 0.250%, 11/25/36 (c) (g)		485,000		442,389
				2,176,175
Asset-Backed - Other—8.3%
AMMC CLO, Ltd. 3.740%, 3M LIBOR + 1.250%, 07/25/29 (144A) (g)		1,340,000		1,336,102
Anchorage Capital CLO, Ltd. 3.946%, 3M LIBOR + 1.510%, 01/15/29 (144A) (g)		760,744		760,733
Apex Credit CLO, Ltd. 3.957%, 3M LIBOR + 1.470%, 04/24/29 (144A) (g)		1,315,000		1,314,537
Apidos CLO 3.430%, 3M LIBOR + 0.980%, 01/19/25 (144A) (g)		334,534		334,362
Atlas Senior Loan Fund, Ltd. 3.339%, 3M LIBOR + 0.870%, 04/20/28 (144A) (g)		1,375,000		1,352,358
3.526%, 3M LIBOR + 1.090%, 01/15/31 (144A) (g)		705,000		693,965
Avant Loans Funding Trust 3.420%, 01/18/22 (144A) (o)		1,182,108		1,180,395
Avery Point CLO, Ltd. 3.565%, 3M LIBOR + 1.120%, 01/18/25 (144A) (g)		553,660		552,927
3.590%, 3M LIBOR + 1.100%, 04/25/26 (144A) (g)		1,012,861		1,011,177
Babson CLO, Ltd. 3.619%, 3M LIBOR + 1.150%, 07/20/25 (144A) (g)		254,851		254,288
Bain Capital Credit CLO, Ltd. 3.719%, 3M LIBOR + 1.250%, 07/20/30 (144A) (g)		815,000		814,412
Bayview Opportunity Master Fund Trust 3.352%, 11/28/32 (144A) (p)		219,590		218,640
3.500%, 01/28/55 (144A) (g)		597,214		591,871
3.500%, 06/28/57 (144A) (g)		705,181		698,763
3.500%, 07/28/57 (144A) (g)		1,359,211		1,347,042
3.500%, 10/28/57 (144A) (g)		1,306,177		1,294,892
3.500%, 01/28/58 (144A) (g)		922,805		913,423
3.598%, 02/25/33 (144A) (p)		270,523		268,432
4.000%, 11/28/53 (144A) (g)		529,794		531,501
4.000%, 10/28/64 (144A) (g)		1,010,980		1,013,984
Asset-Backed - Other—(Continued)
Benefit Street Partners CLO, Ltd. 3.245%, 3M LIBOR + 0.800%, 10/18/29 (144A) (g)		125,000		124,937
3.686%, 3M LIBOR + 1.250%, 07/15/29 (144A) (g)		320,000		318,034
Carlyle Global Market Strategies CLO, Ltd. 3.289%, 3M LIBOR + 0.780%, 04/27/27 (144A) (g)		1,425,000		1,417,061
3.436%, 3M LIBOR + 1.000%, 01/15/31 (144A) (g)		1,395,000		1,373,610
CBAM, Ltd. 3.679%, 3M LIBOR + 1.230%, 10/17/29 (144A) (g)		1,665,000		1,658,109
Cent CLO, Ltd. 3.659%, 3M LIBOR + 1.150%, 07/27/30 (144A) (g)		930,000		919,006
CIFC Funding, Ltd. 3.286%, 3M LIBOR + 0.850%, 07/16/30 (144A) (g)		220,293		220,461
3.537%, 3M LIBOR + 1.050%, 04/24/30 (144A) (g)		1,580,000		1,555,210
Cirrus Funding, Ltd. 4.800%, 01/25/37 (144A)		940,000		955,772
CLUB Credit Trust 2.610%, 01/15/24 (144A) (o)		468,076		465,308
Covenant Credit Partners CLO, Ltd. 4.286%, 3M LIBOR + 1.850%, 10/15/29 (144A) (g)		445,000		439,049
Domino’s Pizza Master Issuer LLC 4.116%, 07/25/48 (144A) (o)		696,500		687,146
Dryden Senior Loan Fund 3.236%, 3M LIBOR + 0.800%, 07/15/30 (144A) (g)		479,500		479,260
3.336%, 3M LIBOR + 0.900%, 04/15/29 (144A) (g)		1,470,000		1,451,660
3.434%, 11/15/28 (144A) (g)		745,000		733,773
3.659%, 3M LIBOR + 1.210%, 07/18/30 (144A) (g)		1,280,000		1,274,095
3.866%, 3M LIBOR + 1.430%, 10/15/28 (144A) (g)		1,604,000		1,603,998
Finance America Mortgage Loan Trust 3.556%, 1M LIBOR + 1.050%, 09/25/33 (c) (g)		70,053		68,375
Flatiron CLO, Ltd. 3.866%, 3M LIBOR + 1.250%, 05/15/30 (144A) (g)		810,000		804,588
Fremont Home Loan Trust 3.556%, 1M LIBOR + 1.050%, 12/25/33 (c) (g)		66,807		65,462
GMACM Home Equity Loan Trust 3.006%, 1M LIBOR + 0.500%, 10/25/34 (144A) (g)		38,835		38,644
Highbridge Loan Management, Ltd. 3.582%, 3M LIBOR + 1.000%, 02/05/31 (144A) (g)		415,000		406,778
KKR CLO, Ltd. 3.776%, 3M LIBOR + 1.340%, 04/15/29 (144A) (g)		1,260,000		1,254,955
KKR Financial CLO, Ltd. 3.726%, 3M LIBOR + 1.290%, 04/15/29 (144A) (g)		565,000		560,762
Knollwood CDO, Ltd. 4.355%, 3M LIBOR + 3.200%, 01/10/39 (144A) (d) (e) (g)		660,004		0
LCM, Ltd. 3.379%, 3M LIBOR + 0.870%, 10/20/27 (144A) (g)		1,075,000		1,066,066
Legacy Mortgage Asset Trust 4.000%, 03/25/58 (144A) (p)		1,625,559		1,620,068
Lendmark Funding Trust 2.830%, 12/22/25 (144A) (o)		680,000		670,933
Madison Park Funding, Ltd.
3.637%, 3M LIBOR + 1.040%, 07/23/29 (144A) (g)		1,341,000		1,334,688
3.729%, 3M LIBOR + 1.260%, 07/20/26 (144A) (g)		1,267,554		1,266,762
Magnetite XVIII, Ltd. 3.696%, 3M LIBOR + 1.080%, 11/15/28 (144A) (g)		1,323,000		1,317,140

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Other—(Continued)
Magnetite, Ltd. 3.416%, 04/15/31 (144A) (g)		795,000	$	784,226
3.490%, 3M LIBOR + 1.000%, 07/25/26 (144A) (g)		1,156,409		1,155,301
3.990%, 3M LIBOR + 1.500%, 07/25/26 (144A) (g)		995,000		988,869
Marlette Funding Trust 2.360%, 12/15/24 (144A) (o)		192,458		191,882
MFRA Trust 3.352%, 11/25/47 (144A) (p)		1,491,791		1,486,050
Mill City Mortgage Loan Trust 3.500%, 08/25/58 (144A) (g)		1,019,617		1,011,138
Nationstar HECM Loan Trust 2.038%, 09/25/27 (144A) (g)		169,085		168,557
Neuberger Berman CLO, Ltd. 3.236%, 3M LIBOR + 0.800%, 01/15/28 (144A) (g)		1,480,000		1,462,061
New Residential Advance Receivables Trust 2.575%, 10/15/49 (144A)		624,500		620,616
3.214%, 02/15/51 (144A)		1,065,000		1,062,784
New Residential Mortgage LLC 3.790%, 07/25/54 (144A)		1,477,364		1,489,471
NRZ Advance Receivables Trust 3.107%, 12/15/50 (144A)		1,195,000		1,186,385
NRZ Excess Spread-Collateralized Notes 3.193%, 01/25/23 (144A)		956,669		950,468
3.265%, 02/25/23 (144A)		595,254		594,258
Oak Hill Advisors Residential Loan Trust 3.000%, 06/25/57 (144A) (p)		425,177		416,584
OCP CLO, Ltd. 3.299%, 3M LIBOR + 0.850%, 04/17/27 (144A) (g)		1,230,000		1,217,653
Octagon Investment Partners, Ltd. 3.546%, 3M LIBOR + 0.900%, 05/21/27 (144A) (g)		489,000		485,568
3.789%, 3M LIBOR + 1.320%, 03/17/30 (144A) (g)		725,000		725,266
OHA Loan Funding, Ltd. 3.717%, 3M LIBOR + 1.040%, 05/23/31 (144A) (g)		695,000		680,300
OneMain Financial Issuance Trust 2.370%, 09/14/32 (144A)		1,648,000		1,622,491
4.100%, 03/20/28 (144A)		472,806		473,918
OZLM Funding, Ltd. 3.369%, 3M LIBOR + 0.900%, 07/22/29 (144A) (g)		93,750		93,791
3.719%, 3M LIBOR + 1.250%, 10/22/30 (144A) (g)		1,205,000		1,195,956
OZLM, Ltd. 3.459%, 3M LIBOR + 1.010%, 07/17/29 (144A) (g)		335,000		329,887
3.570%, 3M LIBOR + 1.050%, 04/30/27 (144A) (g)		1,360,000		1,348,885
Palmer Square Loan Funding, Ltd. 3.700%, 3M LIBOR + 1.450%, 11/15/26 (144A) (g)		735,000		730,043
Pretium Mortgage Credit Partners LLC 3.327%, 12/30/32 (144A) (g)		166,944		164,939
3.375%, 01/27/33 (144A) (p)		240,113		237,904
Prosper Marketplace Issuance Trust 2.360%, 11/15/23 (144A)		148,788		148,388
PRPM LLC 4.000%, 08/25/23 (144A) (g)		984,012		979,303
Regional Management Issuance Trust 3.830%, 07/15/27 (144A) (o)		950,000		953,568
SBA Tower Trust 2.898%, 10/15/44 (144A) (p)		845,000		840,033
Asset-Backed - Other—(Continued)
Seneca Park CLO, Ltd. 3.569%, 3M LIBOR + 1.120%, 07/17/26 (144A) (g)		962,280		961,821
Shackleton CLO, Ltd. 3.356%, 3M LIBOR + 1.020%, 07/17/28 (144A) (g)		1,100,000		1,087,036
SoFi Consumer Loan Program LLC 2.500%, 05/26/26 (144A)		289,780		286,430
2.770%, 05/25/26 (144A)		147,981		146,667
3.090%, 10/27/25 (144A) (o)		256,235		255,700
3.280%, 01/26/26 (144A) (o)		238,394		238,276
Sound Point CLO, Ltd. 3.359%, 3M LIBOR + 1.890%, 01/20/28 (144A) (g)		1,440,000		1,422,596
3.436%, 3M LIBOR + 1.000%, 04/15/31 (144A) (g)		1,435,000		1,404,806
3.595%, 3M LIBOR + 1.150%, 04/18/31 (144A) (g)		1,125,000		1,107,618
3.867%, 3M LIBOR + 1.390%, 01/23/29 (144A) (g)		505,000		504,554
Springleaf Funding Trust 2.680%, 07/15/30 (144A)		1,705,000		1,675,648
2.900%, 11/15/29 (144A)		1,196,485		1,189,541
SPS Servicer Advance Receivables Trust 2.750%, 11/15/49 (144A)		1,020,000		1,018,119
3.620%, 10/17/50 (144A)		315,000		316,295
Symphony CLO, Ltd. 3.716%, 3M LIBOR + 1.280%, 07/14/26 (144A) (g)		1,258,168		1,258,915
Towd Point Mortgage Trust 2.750%, 02/25/55 (144A) (g)		157,302		155,131
2.750%, 08/25/55 (144A) (g)		594,998		582,962
2.750%, 04/25/57 (144A) (g)		431,427		421,894
2.750%, 06/25/57 (144A) (g)		1,186,203		1,153,845
2.915%, 3M LIBOR + 0.600%, 02/25/57 (144A) (g)		1,110,466		1,104,403
3.000%, 03/25/54 (144A) (g)		36,894		36,500
Treman Park CLO, Ltd. 3.535%, 3M LIBOR + 1.070%, 10/20/28 (144A) (g)		1,300,000		1,295,284
Vericrest Opportunity Loan Trust LLC 3.125%, 09/25/47 (144A) (p)		267,296		264,831
3.250%, 06/25/47 (144A) (o) (p)		256,362		255,118
3.375%, 10/25/47 (144A) (p)		1,119,719		1,108,310
4.115%, 09/25/48 (144A) (p)		788,862		787,840
4.336%, 05/25/48 (144A) (p)		696,653		695,895
Vibrant CLO, Ltd. 4.032%, 3M LIBOR + 1.240%, 06/20/29 (144A) (g)		1,515,000		1,504,657
VOLT LXXI LLC 3.967%, 09/25/48 (144A) (p)		573,162		570,044
Voya CLO, Ltd. 3.345%, 3M LIBOR + 1.090%, 01/18/29 (144A) (g)		1,610,000		1,589,191
3.695%, 3M LIBOR + 1.250%, 01/18/29 (144A) (g)		440,000		421,578
Wendys Funding LLC 3.884%, 03/15/48 (144A) (o)		430,650		405,780
Wingstop Funding LLC 4.970%, 12/05/48 (144A) (o)		405,000		414,173
				94,073,515
Total Asset-Backed Securities (Cost $100,068,625)				98,463,696

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—4.6%

Security Description	Principal Amount*		Value
Collateralized Mortgage Obligations—2.7%
Adjustable Rate Mortgage Trust 3.006%, 1M LIBOR + 0.500%, 01/25/36 (g)		163,586	$	155,143
3.046%, 1M LIBOR + 0.540%, 11/25/35 (g)		163,202		160,845
Angel Oak Mortgage Trust LLC
2.478%, 07/25/47 (144A) (g)		394,583		388,607
2.708%, 11/25/47 (144A) (g)		317,083		314,527
2.810%, 01/25/47 (144A) (g)		76,008		75,552
Bear Stearns Adjustable Rate Mortgage Trust 4.035%, 07/25/36 (g)		351,300		316,140
Bear StearnsALT-A Trust 2.986%, 1M LIBOR + 0.480%, 02/25/36 (g)		662,201		624,111
Bear Stearns Mortgage Funding Trust 2.686%, 1M LIBOR + 0.180%, 10/25/36 (g)		194,155		177,772
2.706%, 1M LIBOR + 0.200%, 02/25/37 (g)		607,538		623,062
CIM Trust 3.000%, 04/25/57 (144A) (g)		1,288,078		1,277,875
Civic Mortgage LLC 3.892%, 06/25/22 (144A) (p)		282,416		282,040
COLT Mortgage Loan Trust 2.415%, 10/25/47 (144A) (g)		748,721		743,882
2.614%, 05/27/47 (144A) (g)		291,590		289,760
2.800%, 12/26/46 (144A) (g)		145,365		144,187
2.930%, 02/25/48 (144A) (g)		402,587		397,948
Countrywide Alternative Loan Trust 2.956%, 1M LIBOR + 0.450%, 04/25/35 (g)		248,755		232,972
3.046%, 1M LIBOR + 0.540%, 01/25/36 (g)		130,539		123,791
3.306%, 1M LIBOR + 0.800%, 12/25/35 (g)		171,551		148,494
3.507%, 12M MTA + 1.350%, 08/25/35 (g)		310,598		285,538
5.500%, 11/25/35		658,778		557,497
Countrywide Home Loan Mortgage Pass-Through Trust 2.706%, 1M LIBOR + 0.200%, 04/25/46 (g)		309,484		263,930
3.186%, 1M LIBOR + 0.680%, 02/25/35 (g)		131,209		128,523
3.790%, 06/20/35 (g)		18,232		18,284
4.058%, 09/25/47 (g)		438,996		407,189
Credit Suisse Mortgage Capital Certificates Trust 3.250%, 04/25/47 (144A) (g)		536,723		523,809
Deephaven Residential Mortgage Trust 2.453%, 06/25/47 (144A) (g)		290,613		285,820
2.577%, 10/25/47 (144A) (g)		334,783		330,511
2.725%, 12/26/46 (144A) (g)		147,867		146,404
3.789%, 08/25/58 (144A) (g)		1,447,634		1,450,443
DeutscheALT-A Securities Mortgage Loan Trust 2.656%, 1M LIBOR + 0.150%, 12/25/36 (g)		374,903		335,508
Galton Funding Mortgage Trust 3.500%, 11/25/57 (144A) (g)		407,559		406,249
GreenPoint Mortgage Funding Trust 3.557%, 12M MTA + 1.400%, 10/25/45 (g)		231,307		198,489
GSR Mortgage Loan Trust
2.806%, 1M LIBOR + 0.300%, 01/25/37 (g)		735,527		408,214
4.354%, 01/25/36 (g)		480,738		476,643
6.000%, 07/25/37		264,645		232,350
Home Re, Ltd. 4.106%, 3M LIBOR + 1.600%, 10/25/28 (144A) (g)		690,000		690,841
IndyMac INDX Mortgage Loan Trust 4.077%, 10/25/35 (g)		41,807		39,530
JPMorgan Mortgage Trust 3.789%, 05/25/36 (g)		33,309		32,118
Collateralized Mortgage Obligations—(Continued)
LSTAR Securities Investment, Ltd.
3.849%, 1M LIBOR + 1.550%, 04/01/21 (144A) (g)		240,007		234,925
3.999%, 1M LIBOR + 1.650%, 11/01/22 (144A) (g)		330,209		330,781
4.099%, 1M LIBOR + 1.750%, 09/01/22 (144A) (g)		285,391		285,302
4.099%, 1M LIBOR + 1.750%, 10/01/22 (144A) (g)		457,431		455,770
MASTR Adjustable Rate Mortgages Trust 3.897%, 09/25/33 (g)		85,634		84,420
4.438%, 11/21/34 (g)		108,069		110,621
Metlife Securitization Trust 3.750%, 03/25/57 (144A) (g)		867,929		875,500
MFA Trust 2.588%, 02/25/57 (144A) (g)		311,658		306,497
Morgan Stanley Mortgage Loan Trust 4.001%, 05/25/36 (g)		214,854		159,869
New Residential Mortgage Loan Trust 3.256%, 1M LIBOR + 0.750%, 01/25/48 (144A) (g)		1,568,104		1,559,852
3.750%, 11/26/35 (144A) (g)		889,330		889,736
4.000%, 02/25/57 (144A) (g)		1,562,124		1,571,268
4.000%, 03/25/57 (144A) (g)		1,590,648		1,604,668
4.000%, 04/25/57 (144A) (g)		1,301,588		1,308,980
4.000%, 05/25/57 (144A) (g)		1,050,688		1,059,626
Residential Accredit Loans, Inc. Trust 2.806%, 1M LIBOR + 0.300%, 04/25/36 (g)		573,965		524,337
6.000%, 12/25/35		256,770		244,897
RFMSI Trust 4.133%, 08/25/35 (g)		96,990		72,992
Seasoned Credit Risk Transfer Trust 3.500%, 11/25/57		1,375,652		1,359,908
Structured Adjustable Rate Mortgage Loan Trust 0.490%, 1M LIBOR, 09/25/34 (g)		60,125		55,533
Verus Securitization Trust 3.677%, 06/01/58 (144A) (g)		1,123,708		1,121,731
WaMu Mortgage Pass-Through Certificates Trust 3.037%, 12M MTA + 0.880%, 10/25/46 (g)		246,291		229,276
3.591%, 06/25/37 (g)		148,145		137,368
Washington Mutual Mortgage Pass-Through Certificates 3.106%, 1M LIBOR + 0.600%, 07/25/36 (g)		111,013		75,463
Wells Fargo Mortgage-Backed Securities Trust 4.501%, 10/25/35 (g)		1,541,000		1,558,571
4.603%, 09/25/36 (g)		164,765		164,571
4.701%, 10/25/36 (g)		170,779		167,789
				30,244,849
Commercial Mortgage-Backed Securities—1.9%
BANK 0.749%, 11/15/50 (g) (h)		8,293,189		435,974
0.820%, 11/15/54 (g) (h)		994,524		55,586
Benchmark Mortgage Trust 0.528%, 01/15/51 (g) (h)		2,489,830		91,805
0.544%, 07/15/51 (g) (h)		4,467,299		165,923
Citigroup Commercial Mortgage Trust 1.016%, 07/10/47 (g) (h)	4,075,942		175,089
1.107%, 04/10/48 (g) (h)		4,854,479		237,838
3.458%, 08/15/50		675,000		662,519

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Commercial Mortgage-Backed Securities—(Continued)
Commercial Mortgage Pass-Through Certificates Mortgage Trust 0.653%, 02/10/47 (g) (h)		2,887,988	$	75,778
0.684%, 08/10/46 (g) (h)		898,646		24,546
1.785%, 10/15/45 (g) (h)		394,806		19,605
2.540%, 12/10/45		250,000		244,120
2.853%, 10/15/45		180,000		176,813
3.101%, 03/10/46		145,000		144,121
3.213%, 03/10/46		263,809		263,413
3.424%, 03/10/31 (144A)		1,065,000		1,081,822
3.612%, 06/10/46 (g)		260,000		263,260
3.620%, 07/10/50		130,000		130,752
3.694%, 08/10/47		395,000		400,584
3.796%, 08/10/47		225,000		229,487
3.961%, 03/10/47		235,125		241,053
4.074%, 02/10/47 (g)		115,000		118,750
4.205%, 08/10/46		100,035		103,934
4.210%, 08/10/46 (g)		175,000		181,756
4.236%, 02/10/47 (g)		190,000		197,752
4.573%, 10/15/45 (144A) (g) (o)		210,000		47,611
4.750%, 10/15/45 (144A) (g) (o)		355,000		180,872
Credit Suisse First Boston Mortgage Securities Corp. 4.877%, 04/15/37		16,377		16,096
CSAIL Commercial Mortgage Trust 0.802%, 06/15/57 (g) (h)		12,785,416		492,644
1.022%, 11/15/48 (g) (h)		1,136,446		52,035
1.795%, 01/15/49 (g) (h)		2,387,939		212,258
3.446%, 08/15/48		80,000		79,680
3.544%, 11/15/48		280,000		279,779
GS Mortgage Securities Corp. Trust 2.954%, 11/05/34 (144A)		1,200,000		1,188,690
3.633%, 06/05/31 (144A)		130,000		129,881
GS Mortgage Securities Trust 0.086%, 07/10/46 (g) (h)		11,200,858		42,879
1.338%, 08/10/44 (144A) (g) (h)		995,389		26,949
3.629%, 11/10/47		230,000		233,436
3.674%, 04/10/47 (144A) (o)		235,000		68,923
4.965%, 04/10/47 (144A) (g)		465,000		386,796
JPMBB Commercial Mortgage Securities Trust 0.751%, 09/15/47 (g) (h)		3,932,312		108,076
3.363%, 07/15/45		468,669		469,028
JPMorgan Chase Commercial Mortgage Securities Trust 2.733%, 10/15/45 (144A) (g) (o)		400,000		228,990
4.370%, 12/15/47 (144A) (g) (o)		130,000		106,728
Morgan Stanley Bank of America Merrill Lynch Trust 1.037%, 10/15/48 (g) (h)		870,546		46,914
1.101%, 12/15/47 (g) (h)		2,866,928		106,043
2.918%, 02/15/46		130,000		128,108
3.134%, 12/15/48		480,000		476,781
3.176%, 08/15/45		245,000		243,830
Morgan Stanley Bank of America Merrill Lynch Trust 3.766%, 11/15/46		180,000		183,186
4.259%, 10/15/46 (g)		115,000		119,424
Morgan Stanley Capital Trust 1.449%, 06/15/50 (g) (h)		1,711,718		139,622
5.154%, 07/15/49 (144A) (g) (o)		265,000		238,705
5.241%, 10/12/52 (144A) (g)		80,000		9,668
5.241%, 10/12/52 (144A) (g) (o)		55,000		5,147
Commercial Mortgage-Backed Securities—(Continued)
SFAVE Commercial Mortgage Securities Trust 3.872%, 01/05/43 (144A) (g)		150,000		138,887
UBS Commercial Mortgage Trust 1.149%, 08/15/50 (g) (h)		1,039,156		73,594
3.426%, 08/15/50		225,000		220,650
UBS-Barclays Commercial Mortgage Trust 1.513%, 02/15/50 (g) (h)		5,692,422		517,925
2.850%, 12/10/45		325,000		321,182
3.091%, 08/10/49		645,000		643,327
3.185%, 03/10/46		240,000		239,832
3.244%, 04/10/46		300,119		300,611
3.305%, 1M LIBOR + 0.850%, 08/15/36 (144A) (g)		1,802,000		1,799,318
VNDO Mortgage Trust 2.996%, 11/15/30 (144A)		1,105,000		1,094,896
Wells Fargo Commercial Mortgage Trust 1.149%, 09/15/57 (g) (h)		8,296,765		377,514
1.155%, 05/15/48 (g) (h)		3,835,355		181,480
2.918%, 10/15/45		317,557		314,045
2.942%, 10/15/49		70,000		66,774
3.290%, 05/15/48		230,000		227,361
3.789%, 09/15/48		315,000		318,874
3.839%, 09/15/58		225,000		229,235
4.100%, 05/15/48 (g)		80,000		70,352
WF-RBS Commercial Mortgage Trust 1.299%, 03/15/47 (g) (h)		1,918,575		89,227
2.870%, 11/15/45		397,749		394,406
2.875%, 12/15/45		175,000		172,219
3.016%, 11/15/47 (144A) (o)		550,000		276,207
3.071%, 03/15/45		185,000		183,533
3.345%, 05/15/45		100,000		99,110
3.607%, 11/15/47		225,000		226,804
3.723%, 05/15/47		190,000		192,995
3.995%, 05/15/47		160,281		164,957
4.045%, 03/15/47		40,000		41,261
4.101%, 03/15/47		335,000		346,353
5.000%, 06/15/44 (144A) (g) (o)		105,000		77,628
5.582%, 04/15/45 (144A) (g)		255,000		255,352
				21,426,968
Total Mortgage-Backed Securities (Cost $53,582,968)				51,671,817
Floating Rate Loans (q)—0.9%
Aerospace/Defense—0.0%
TransDigm, Inc. Term Loan E, 5.022%, 1M LIBOR + 2.500%, 05/30/25		149,874		141,818
Auto Manufacturers—0.0%
Navistar International Corp. 1st Lien Term Loan B, 5.890%, 1M LIBOR + 3.500%, 11/06/24		99,250		95,528

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Floating Rate Loans (q)—(Continued)

Security Description	Principal Amount*		Value
Building Materials—0.0%
NCI Building Systems, Inc. Term Loan, 6.175%, 3M LIBOR + 3.750%, 04/12/25		99,500	$	91,042
Quikrete Holdings, Inc. 1st Lien Term Loan, 5.272%, 1M LIBOR + 2.750%, 11/15/23		125,000		119,297
				210,339
Chemicals—0.0%
HB Fuller Co. Term Loan B, 4.470%, 1M LIBOR + 2.000%, 10/20/24		91,360		86,107
Univar, Inc. Term Loan B, 4.772%, 1M LIBOR + 2.250%, 07/01/24		91,159		87,354
				173,461
Commercial Services—0.1%
Acosta Holdco, Inc. Term Loan, 5.772%, 1M LIBOR + 3.250%, 09/26/21		152,886		93,706
APX Group, Inc. Term Loan B, 7.497%, 2M LIBOR + 4.000%, 04/01/24		99,750		96,882
BlitzF18-675 GmbH Term Loan B2, 3.750%, EURIBOR + 3.750%, 07/31/25 (EUR)		100,000		114,353
BrightView Landscapes LLC 1st Lien Term Loan B, 5.029%, 1M LIBOR + 2.500%, 08/15/25		216,864		207,648
Financial & Risk US Holdings, Inc. Term Loan, 6.272%, 1M LIBOR + 3.750%, 10/01/25		105,000		98,490
Jaguar Holding Co. II Term Loan, 5.022%, 1M LIBOR + 2.500%, 08/18/22		129,994		123,801
Nets Holding A/S Term Loan B1E, 3.000%, EURIBOR + 3.000%, 02/06/25 (EUR)		88,194		99,984
PSAV Holdings LLC
1st Lien Term Loan, 5.894%, 1M LIBOR + 3.250%, 03/01/25		173,874		164,746
WEX, Inc. Term Loan B2, 4.772%, 1M LIBOR + 2.250%, 06/30/23		409,500		395,372
				1,394,982
Computers—0.0%
Tempo Acquisition LLC Term Loan, 5.522%, 1M LIBOR + 3.000%, 05/01/24		206,850		198,576
Cosmetics/Personal Care—0.0%
Coty, Inc. Term Loan B, 4.633%, 1M LIBOR + 2.250%, 04/07/25		188,826		174,900
Revlon Consumer Products Corp. Term Loan B, 6.207%, 3M LIBOR + 2.500%, 09/07/23		239,488		171,084
				345,984
Diversified Financial Services—0.0%
AlixPartners LLP Term Loan B, 5.272%, 1M LIBOR + 2.750%, 04/04/24		176,850		170,307
Energy Equipment & Services—0.0%
Seadrill Partners Finco LLC Term Loan B, 8.803%, 3M LIBOR + 6.000%, 02/21/21		103,814		81,365
Entertainment—0.0%
Golden Entertainment, Inc. 1st Lien Term Loan, 5.530%, 1M LIBOR + 3.000%, 10/21/24		168,300		161,147
Food—0.0%
Post Holdings, Inc. Incremental Term Loan, 4.510%, 1M LIBOR + 2.000%, 05/24/24		98,213		95,143
Food Products—0.0%
Hostess Brands LLC Term Loan, 4.775%, 1M LIBOR + 2.250%, 08/03/22		107,809		102,823
Healthcare-Products—0.0%
Lifescan Global Corporation 1st Lien Term Loan, 8.396%, 3M LIBOR + 6.000%, 09/27/24		100,000		94,500
Healthcare-Services—0.1%
Envision Healthcare Corp. 1st Lien Term Loan, 6.272%, 1M LIBOR + 3.750%, 10/10/25		115,000		107,685
MPH Acquisition Holdings LLC Term Loan B, 5.553%, 3M LIBOR + 2.750%, 06/07/23		145,764		137,856
U.S. Renal Care, Inc. Term Loan B, 7.053%, 3M LIBOR + 4.250%, 12/30/22		252,200		240,977
				486,518
Insurance—0.1%
Asurion LLC Term Loan B4, 5.522%, 1M LIBOR + 3.000%, 08/04/22		283,056		272,724
Camelot UK Holdco, Ltd. Term Loan, 5.772%, 1M LIBOR + 3.250%, 10/03/23		105,316		100,840
Hub International, Ltd. Term Loan B, 5.240%, 3M LIBOR + 2.750%, 04/25/25		119,400		113,032
Sedgwick Claims Management Services, Inc.
Term Loan B, 11/06/25 (r)		100,000		95,917
USI, Inc. Term Loan, 5.803%, 3M LIBOR + 3.000%, 05/16/24		103,688		98,192
				680,705
Internet—0.0%
Zayo Group LLC Incremental Term Loan, 4.772%, 1M LIBOR + 2.250%, 01/19/24		75,071		72,193
Internet & Direct Marketing Retail—0.0%
Lands’ End, Inc. Term Loan B, 5.772%, 1M LIBOR + 3.250%, 04/04/21 (c)		155,370		147,472

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Floating Rate Loans (q)—(Continued)

Security Description	Principal Amount*		Value
IT Services—0.0%
Blackhawk Network Holdings, Inc. 1st Lien Term Loan, 5.522%, 1M LIBOR + 3.000%, 06/15/25		99,500	$	94,981
Leisure Time—0.0%
Aristocrat Technologies, Inc. 1st Lien Term Loan, 4.219%, 3M LIBOR + 1.750%, 10/19/24		92,636		88,814
Delta 2 (LUX) S.a.r.l. Term Loan, 5.022%, 1M LIBOR + 2.500%, 02/01/24		241,686		228,696
				317,510
Life Sciences Tools & Services—0.0%
Syneos Health, Inc. Term Loan B, 4.522%, 1M LIBOR + 2.000%, 08/01/24		76,313		73,832
Lodging—0.0%
Boyd Gaming Corp. Term Loan B3, 4.666%, 1W LIBOR + 2.250%, 09/15/23		118,504		113,468
Caesars Entertainment Operating Co. Term Loan, 4.522%, 1M LIBOR + 2.000%, 10/06/24		158,400		151,035
Caesars Resort Collection LLC 1st Lien Term Loan B, 5.272%, 1M LIBOR + 2.750%, 12/22/24		110,177		105,770
Crown Finance U.S., Inc. Term Loan, 5.022%, 1M LIBOR + 2.500%, 02/28/25		99,250		94,436
				464,709
Machinery—0.0%
Circor International, Inc. 1st Lien Term Loan, 5.921%, 1M LIBOR + 3.500%, 12/11/24		103,950		99,012
Machinery-Construction & Mining—0.0%
Brookfield WEC Holdings, Inc. 1st Lien Term Loan, 6.272%, 1M LIBOR + 3.750%, 08/01/25		100,000		97,075
Machinery-Diversified—0.0%
Gardner Denver, Inc. Term Loan B, 5.272%, 1M LIBOR + 2.750%, 07/30/24		179,620		174,119
Media—0.0%
Gray Television, Inc. Term Loan C, 11/02/25 (r)		100,000		96,839
Numericable Group S.A.
Term Loan B12, 6.143%, 1M LIBOR + 3.687%, 01/31/26		99,000		91,977
Univision Communications, Inc. Term Loan C5, 5.272%, 1M LIBOR + 2.750%, 03/15/24		146,782		133,425
				322,241
Miscellaneous Manufacturing—0.0%
CTC AcquiCo GmbH Term Loan B1, 2.750%, EURIBOR + 2.750%, 03/07/25 (EUR)		97,570		109,555
Office/Business Equipment—0.0%
Brand Energy & Infrastructure Services, Inc. Term Loan, 6.732%, 6M LIBOR + 4.250%, 06/21/24		147,750		140,436
Oil & Gas—0.1%
California Resources Corp. Second Out Term Loan, 12.897%, 1M LIBOR + 10.375%, 12/31/21 (c)		130,000		128,700
Fieldwood Energy LLC 1st Lien TL, 7.772%, 1M LIBOR + 5.250%, 04/11/22		249,780		234,794
Foresight Energy LLC 1st Lien Term Loan, 8.277%, 3M LIBOR + 5.750%, 03/28/22		189,117		186,123
Paragon Offshore Finance Co. Term Loan B, 07/18/21 (c) (d) (e)		706		0
				549,617
Packaging & Containers—0.1%
Berry Global, Inc. Term Loan S, 4.137%, 1M LIBOR + 1.750%, 02/08/20		151,134		149,118
Flex Acquisition Co., Inc. 1st Lien Term Loan, 5.349%, 1M LIBOR + 3.000%, 12/29/23		98,500		93,021
Reynolds Group Holdings, Inc. Term Loan, 5.272%, 1M LIBOR + 2.750%, 02/05/23		253,057		242,302
				484,441
Pharmaceuticals—0.1%
Change Healthcare Holdings LLC Term Loan B, 5.272%, 1M LIBOR + 2.750%, 03/01/24		168,438		160,472
Endo Luxembourg Finance Co. I S.a.r.l. Term Loan B, 6.813%, 1M LIBOR + 4.250%, 04/29/24		167,450		158,240
Valeant Pharmaceuticals International, Inc. Term Loan B, 5.379%, 1M LIBOR + 3.000%, 06/02/25		165,195		158,587
				477,299
Pipelines—0.0%
Energy Transfer Equity L.P. Term Loan B, 4.522%, 1M LIBOR + 2.000%, 02/02/24		277,617		271,414
Real Estate Investment Trusts—0.0%
VICI Properties 1 LLC Term Loan B, 4.504%, 1M LIBOR + 2.000%, 12/20/24		95,455		91,708
Retail—0.1%
Bass Pro Group LLC Term Loan B, 7.522%, 1M LIBOR + 5.000%, 09/25/24		148,125		142,293
Harbor Freight Tools USA, Inc. Term Loan B, 5.022%, 1M LIBOR + 2.500%, 08/18/23		115,739		109,615

See accompanying notes to financial statements.

BHFTII-24

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Floating Rate Loans (q)—(Continued)

Security Description	Principal Amount*		Value
Retail—(Continued)
J. Crew Group, Inc.
Term Loan B, 5.750%, 1M LIBOR + 3.000%, 03/05/21 (d) (e)		306,326	$	219,422
Neiman Marcus Group, Ltd. LLC Term Loan, 5.630%, 1M LIBOR + 3.250%, 10/25/20		222,084		189,326
Staples, Inc. Term Loan B, 6.541%, 3M LIBOR + 4.000%, 09/12/24		128,700		123,632
				784,288
Semiconductors & Semiconductor Equipment—0.0%
Microchip Technology, Inc. Term Loan B, 4.530%, 1M LIBOR + 2.000%, 05/29/25		90,433		86,025
Software—0.1%
Almonde, Inc. 1st Lien Term Loan, 6.303%, 3M LIBOR + 3.500%, 06/13/24		117,318		109,751
First Data Corp. Term Loan, 4.504%, 1M LIBOR + 2.000%, 07/08/22		337,680		324,736
Infor (U.S.), Inc. Term Loan B6, 5.272%, 1M LIBOR + 2.750%, 02/01/22		241,753		232,230
SS&C Technologies, Inc. Term Loan B5, 4.772%, 1M LIBOR + 2.250%, 04/16/25		99,749		94,606
				761,323
Telecommunications—0.1%
CSC Holdings LLC 1st Lien Term Loan, 4.705%, 1M LIBOR + 2.250%, 07/17/25		106,657		100,791
Sprint Communications, Inc. 1st Lien Term Loan B, 5.063%, 1M LIBOR + 2.500%, 02/02/24		334,050		319,853
Telenet Financing USD LLC Term Loan AN, 4.705%, 1M LIBOR + 2.250%, 08/15/26		100,000		95,400
				516,044
Transportation—0.0%
Savage Enterprises LLC 1st Lien Term Loan B, 6.880%, 1M LIBOR + 4.500%, 08/01/25		96,023		94,582
Total Floating Rate Loans (Cost $11,362,578)				10,663,072
Foreign Government—0.5%
Banks—0.1%
Banque Centrale de Tunisie International Bond 6.750%, 10/31/23 (144A) (EUR)		535,000		588,622
Regional Government—0.0%
Province of Alberta Canada 2.120%, 3M CDOR + 0.000%, 01/17/19 (CAD) (g)		540,000		395,353
Sovereign—0.4%
Abu Dhabi Government International Bond 4.125%, 10/11/47 (144A)		1,110,000		1,062,825
Argentine Republic Government International Bond 5.250%, 01/15/28 (EUR)		370,000		302,557
Egypt Government International Bond 8.500%, 01/31/47		200,000		180,261
Export-Import Bank of Korea 2.929%, 3M LIBOR + 0.460%, 10/21/19 (g)		200,000		199,766
Ghana Government International Bond 8.627%, 06/16/49 (144A)		400,000		348,224
Hungary Government International Bond
6.375%, 03/29/21		160,000		168,854
Japan Bank for International Cooperation 3.218%, 3M LIBOR + 0.480%, 06/01/20 (g)		200,000		201,010
Panama Government International Bonds 4.300%, 04/29/53		532,000		493,967
4.500%, 04/16/50		400,000		383,000
Romanian Government International Bond 6.125%, 01/22/44		842,000		933,034
Spain Government Bond 0.250%, 01/31/19 (EUR)		750,000		859,612
				5,133,110
Total Foreign Government (Cost $6,437,293)				6,117,085
Municipals—0.3%
Chicago Board of Education, General Obligation Unlimited, Build America Bonds 6.138%, 12/01/39		155,000		147,281
6.319%, 11/01/29		345,000		339,898
Chicago Transit Authority Transfer Tax Receipts Revenue 6.899%, 12/01/40		490,000		625,970
City of Chicago IL, General Obligation Unlimited 7.045%, 01/01/29		190,000		204,472
7.375%, 01/01/33		775,000		852,151
State of Illinois 4.950%, 06/01/23		375,000		380,753
State of Illinois, General Obligation Unlimited 5.363%, 02/01/19		35,000		35,059
5.877%, 03/01/19		655,000		657,895
Total Municipals (Cost $3,280,831)				3,243,479
Short-Term Investments—2.3%
Certificate of Deposit—0.1%
Bank of Nova Scotia 2.034%, 01/30/19 (CAD)		100,000		73,119
2.099%, 02/07/19 (CAD)		555,000		405,615
Credit Agricole Corporate and Investment Bank 3.224%, 3M LIBOR + 0.400%, 09/24/20 (g)		125,000		124,979
Dexia Credit Local S.A 2.740%, 3M LIBOR + 0.100%, 05/17/19 (g)		105,000		104,988
				708,701

See accompanying notes to financial statements.

BHFTII-25

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Short-Term Investments—(Continued)

Security Description	Principal Amount*		Value
Commercial Paper—0.2%
AT&T, Inc. 2.955%, 05/28/19		250,000	$	246,754
C.I.B.C. 1.995%, 01/25/19		680,000		497,448
Enbridge Pipelines, Inc. 1.626%, 01/04/19		500,000		366,182
Royal Bank of Canada New York 1.366%, 01/03/19 (CAD)		410,000		300,268
1.938%, 01/16/19 (CAD)		420,000		307,355
1.966%, 01/21/19 (CAD)		270,000		197,526
VW CR INC 3.023%, 03/20/19		500,000		496,591
				2,412,124
Repurchase Agreement—1.0%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $11,101,288; collateralized by U.S. Treasury Note at 2.125%, maturing 03/31/24, with a market value of $11,326,574.		11,100,548		11,100,548
Foreign Government—1.0%
Egypt Treasury Bills 15.058%, 03/05/19 (EGP) (s)		3,950,000		213,916
18.907%, 10/15/19 (EGP) (s)		11,450,000		553,334
Hungary Treasury Bill Zero Coupon, 02/06/19 (s)		59,930,000		213,870
Japan Treasury Bills
Zero Coupon, 01/15/19 (JPY) (s)		74,850,000		682,934
Zero Coupon, 01/28/19 (JPY) (s)		210,950,000		1,924,842
Zero Coupon, 02/04/19 (JPY) (s)		157,200,000		1,434,442
Zero Coupon, 02/12/19 (JPY) (s)		175,000,000		1,596,922
Zero Coupon, 02/18/19 (JPY) (s)		177,000,000		1,615,216
Zero Coupon, 02/25/19 (JPY) (s)		175,000,000		1,597,013
Zero Coupon, 03/11/19 (JPY) (s)		56,700,000		517,464
Zero Coupon, 03/25/19 (JPY) (s)		154,150,000		1,406,913
Total Foreign Government (Cost $11,397,072)				11,756,866
Total Short-Term Investments (Cost $25,677,290)				25,978,239
Securities Lending Reinvestments (t)—4.2%
Certificates of Deposit—2.2%
Banco Del Estado De Chile New York 2.820%, 1M LIBOR + 0.350%, 05/20/19 (g)		1,000,000		999,979
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (g)		500,000		500,200
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (g)		500,000		499,953
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (g)		2,000,000		1,999,196
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (g)		250,000		250,001
Certificates of Deposit—(Continued)
Credit Agricole S.A. 2.799%, 1M LIBOR + 0.320%, 05/21/19 (g)		1,000,000		1,000,063
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		1,500,000		1,499,889
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (g)		2,000,000		2,000,012
Natixis S.A. New York 2.810%, 1M LIBOR + 0.370%, 02/14/19 (g)		1,500,000		1,500,280
Royal Bank of Canada New York
2.650%, 1M LIBOR + 0.250%, 01/11/19 (g)		500,000		500,004
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (g)		1,500,000		1,499,956
2.717%, 3M LIBOR + 0.230%, 04/24/19 (g)		1,500,000		1,499,673
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (g)		4,000,000		3,999,920
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (g)		1,500,000		1,499,449
Sumitomo Mitsui Banking Corp. 2.700%, 02/25/19		1,000,000		1,000,092
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		992,778		994,570
Svenska Handelsbanken AB 2.767%, 1M LIBOR + 0.380%, 12/10/19 (g)		1,000,000		999,967
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (g)		2,000,000		2,000,000
Wells Fargo Bank N.A. 2.730%, 3M LIBOR + 0.210%, 10/25/19 (g)		500,000		500,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (g)		500,000		499,997
				25,243,201
Commercial Paper—0.6%
Banco Santander S.A. 2.740%, 02/07/19		992,998		997,088
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (g)		1,000,000		1,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (g)		2,500,000		2,500,232
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (g)		1,000,000		999,890
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (g)		1,000,000		999,960
				6,497,170
Repurchase Agreements—1.3%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $1,007,667; collateralized by various Common Stock with an aggregate market value of $1,100,183.		1,000,000		1,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $352,630; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $357,000.		350,000		350,000

See accompanying notes to financial statements.

BHFTII-26

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments(t)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $300,042; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $306,000.		300,000	$	300,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $500,069; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $510,000.		500,000		500,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $200,031; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $204,000.		200,000		200,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $5,276,113; collateralized by U.S. Treasury Bills with, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $5,380,679.		5,275,176		5,275,176
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,410,519; collateralized by various Common Stock with an aggregate market value of $1,540,000.		1,400,000		1,400,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $300,043; collateralized by various Common Stock with an aggregate market value of $333,964.		300,000		300,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,000,142; collateralized by various Common Stock with an aggregate market value of $1,113,212.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $800,114; collateralized by various Common Stock with an aggregate market value of $890,570.		800,000		800,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $2,901,444; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $3,176,880.		2,900,000		2,900,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $800,398; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $876,381.		800,000		800,000
				14,825,176
Time Deposit—0.1%
Royal Bank of Canada 2.420%, 01/02/19		1,000,000		1,000,000
Total Securities Lending Reinvestments (Cost $47,566,899)				47,565,547
Total Purchased Options—0.1% (u) (Cost $1,163,353)				981,777
Total Investments—117.7% (Cost $1,338,148,163)				1,335,963,128
Other assets and liabilities (net)—(17.7)%				(200,738,167	)
Net Assets—100.0%			$	1,135,224,961

*	Principal and notional amounts stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $47,643,999 and the collateral received consisted of cash in the amount of $47,560,951 andnon-cash collateral with a value of $1,225,185. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third- party custodian, and cannot be sold or repledged by the Portfolio. As such, this non-cash collateral is excluded from the Statement of Assets and Liabilities.
(c)	Illiquid security. As of December 31, 2018, these securities represent 0.5% of net assets.
(d)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(e)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent less than 0.05% of net assets.
(f)	TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(g)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(h)	Interest only security.
(i)	Principal only security.
(j)	All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2018, the market value of securities pledged was $4,179,340.
(k)	All or a portion of the security was pledged as collateral against open OTC swap and option contracts. As of December 31, 2018, the market value of securities pledged was $2,794,799.
(l)	All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2018, the market value of securities pledged was $1,226,903.
(m)	Principal amount of security is adjusted for inflation.
(n)	Non-income producing; security is in default and/or issuer is in bankruptcy.
(o)	Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2018, the market value of restricted securities was $7,799,796, which is 0.7% of net assets. See details shown in the Restricted Securities table that follows.

See accompanying notes to financial statements.

BHFTII-27

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

(p)	Security is a“step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(q)	Floating rate loans ("Senior Loans") often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will have an expected average life of approximately two to four years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are determined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.
(r)	This loan will settle after December 31, 2018, at which time the interest rate will be determined.
(s)	The rate shown represents current yield to maturity.
(t)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(u)	For a breakout of open positions, see details shown in the Purchased Options table that follows.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $155,810,457, which is 13.7% of net assets.

Restricted Securities	Acquisition Date		Principal Amount		Cost		Value
Avant Loans Funding Trust, 3.420%, 01/18/22		10/10/18	$	1,182,108	$	1,182,058	$	1,180,395
CLUB Credit Trust, 2.610%, 01/15/24		11/29/17		468,076		468,064		465,308
Commercial Mortgage Pass-Through Certificates Mortgage Trust, 4.750%, 10/15/45		02/18/15 - 02/16/17		355,000		256,041		180,872
Commercial Mortgage Pass-Through Certificates Mortgage Trust, 4.573%, 10/15/45		12/05/14 - 03/29/17		210,000		149,074		47,611
Domino’s Pizza Master Issuer LLC, 4.116%, 07/25/48		04/18/18		696,500		696,500		687,146
GS Mortgage Securities Trust, 3.674%, 04/10/47		04/03/14		235,000		147,173		68,923
JPMorgan Chase Commercial Mortgage Securities Trust, 2.733%, 10/15/45		05/19/15		400,000		269,984		228,990
JPMorgan Chase Commercial Mortgage Securities Trust, 4.370%, 12/15/47		03/17/14		130,000		105,300		106,728
Lendmark Funding Trust, 2.830%, 12/22/25		06/22/17		680,000		679,861		670,933
Marlette Funding Trust, 2.360%, 12/15/24		10/17/17		192,458		192,448		191,882
Morgan Stanley Capital Trust, 5.154%, 07/15/49		03/13/15		265,000		242,868		238,705
Morgan Stanley Capital Trust, 5.241%, 10/12/52		05/02/14		55,000		55,106		5,147
Regional Management Issuance Trust, 3.830%, 07/15/27		06/20/18		950,000		949,804		953,568
Skopos Auto Receivables Trust, 3.190%, 09/15/21		03/14/18		516,415		516,412		515,986
SoFi Consumer Loan Program LLC, 3.090%, 10/27/25		07/26/16		256,235		256,195		255,700
SoFi Consumer Loan Program LLC, 3.280%, 01/26/26		01/20/17		238,394		238,374		238,276
Vericrest Opportunity Loan Trust LLC, 3.250%, 06/25/47		06/09/17		256,362		256,362		255,118
WF-RBS Commercial Mortgage Trust, 5.000%, 06/15/44		03/27/14		105,000		94,365		77,628
WF-RBS Commercial Mortgage Trust, 3.016%, 11/15/47		11/05/14		550,000		362,270		276,207
Wendys Funding LLC, 3.884%, 03/15/48		12/06/17		430,650		430,650		405,780
Wingstop Funding LLC, 4.970%, 12/05/48		11/06/18		405,000		405,000		414,173
YPF S.A., 16.500%, 05/09/22		05/04/17		19,392,845		1,264,168		334,720
							$	7,799,796

TBA Forward Sale Commitments

Security Description	Interest Rate			Maturity		Face Amount			Cost			Value
Fannie Mae 15 Yr. Pool		2.500	%		TBA	$	(6,341,000	)	$	(6,142,950	)	$	(6,192,823	)
Fannie Mae 15 Yr. Pool		3.000	%		TBA		(5,022,000	)		(4,979,627	)		(5,011,220	)
Fannie Mae 15 Yr. Pool		4.500	%		TBA		(1,300,000	)		(1,320,059	)		(1,322,810	)
Fannie Mae 30 Yr. Pool		3.000	%		TBA		(20,064,000	)		(19,324,937	)		(19,578,726	)
Fannie Mae 30 Yr. Pool		4.500	%		TBA		(665,000	)		(686,535	)		(688,934	)
Freddie Mac 15 Yr. Gold Pool		3.000	%		TBA		(2,625,000	)		(2,595,674	)		(2,615,083	)
Freddie Mac 30 Yr. Gold Pool		3.000	%		TBA		(275,000	)		(264,623	)		(268,035	)
Freddie Mac 30 Yr. Gold Pool		5.500	%		TBA		(200,000	)		(211,344	)		(211,662	)
Totals									$	(35,525,749	)	$	(35,889,293	)

See accompanying notes to financial statements.

BHFTII-28

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Forward Foreign Currency Exchange Contracts

Contracts to Deliver		Counterparty	Settlement Date		In Exchange for			Unrealized Appreciation/ (Depreciation)
CAD	410,000	BNP		01/03/19		USD	308,580	$	8,250
CAD	500,000	SSBT		01/04/19		USD	376,340		10,073
CAD	300,000	BOA		01/15/19		USD	226,189		6,365
CAD	335,000	SSBT		01/15/19		USD	256,240		10,770
CAD	420,000	MSIP		01/16/19		USD	318,194		10,433
CAD	540,000	HSBCU		01/17/19		USD	407,304		11,601
CAD	270,000	HSBCU		01/22/19		USD	203,670		5,795
CAD	680,000	HSBCU		01/25/19		USD	509,930		11,540
CAD	75,000	NAB		01/28/19		USD	55,834		860
CAD	100,000	DBAG		01/30/19		USD	75,415		2,113
CAD	555,000	SSBT		02/07/19		USD	416,092		9,191
CAD	270,000	SSBT		02/19/19		USD	207,053		9,048
CHF	100,000	HSBCU		04/10/19		USD	101,495		(1,191	)
EUR	175,000	BOA		01/22/19		USD	200,148		(675	)
EUR	3,356,032	BOA		01/31/19		USD	3,866,132		11,981
EUR	90,000	JPMC		01/31/19		USD	104,505		1,147
EUR	360,000	RBC		01/31/19		USD	418,931		5,498
EUR	300,000	SSBT		01/31/19		USD	341,581		(2,946	)
EUR	58,000	SSBT		01/31/19		USD	66,677		69
EUR	100,000	HSBCU		03/15/19		USD	114,470		(793	)
EUR	899,000	BOA		03/20/19		USD	1,027,593		(9,085	)
GBP	100,000	SSBT		02/27/19		USD	128,529		725
GBP	50,000	SSBT		02/27/19		USD	66,511		2,609
HUF	59,930,000	GSI		02/06/19		USD	211,096		(3,274	)
JPY	500,000,000	SSBT		01/07/19		USD	4,456,141		(105,694	)
JPY	74,850,000	CBNA		01/15/19		USD	662,483		(20,864	)
JPY	210,950,000	JPMC		01/28/19		USD	1,892,998		(34,861	)
JPY	125,000,000	BOA		02/04/19		USD	1,108,251		(34,748	)
JPY	32,200,000	JPMC		02/04/19		USD	289,561		(4,876	)
JPY	175,000,000	BOA		02/12/19		USD	1,552,518		(48,685	)
JPY	75,000,000	BOA		02/19/19		USD	665,730		(20,875	)
JPY	102,000,000	JPMC		02/19/19		USD	903,351		(30,432	)
JPY	175,000,000	BOA		02/25/19		USD	1,554,102		(48,726	)
JPY	56,700,000	JPMC		03/11/19		USD	504,251		(15,657	)
JPY	154,150,000	JPMC		03/25/19		USD	1,370,010		(45,232	)
Net Unrealized Depreciation								$	(310,546	)

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts			Notional Value				Value/ Unrealized Appreciation/ (Depreciation)
90 Day Eurodollar Futures		12/16/19		189			USD	45,997,875		$	120,538
S&P 500 IndexE-Mini Futures		03/15/19		49			USD	6,137,740			46,018
U.S. Treasury Long Bond Futures		03/20/19		42			USD	6,132,000			286,390
U.S. Treasury Note 5 Year Futures		03/29/19		318			USD	36,470,625			505,253
U.S. Treasury Note Ultra 10 Year Futures		03/20/19		17			USD	2,211,328			69,031
U.S. Treasury Ultra Long Bond Futures		03/20/19		122			USD	19,600,063			1,035,632
Futures Contracts—Short
90 Day Eurodollar Futures		12/14/20		(189	)		USD	(46,082,925	)		(153,800	)
U.S. Treasury Note 10 Year Futures		03/20/19		(33	)		USD	(4,026,516	)	��	(43,045	)
U.S. Treasury Note 2 Year Futures		03/29/19		(220	)		USD	(46,708,750	)		(316,062	)
Net Unrealized Appreciation										$	1,549,955

See accompanying notes to financial statements.

BHFTII-29

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Purchased Options

Interest Rate Swaptions	Strike Rate	Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Expiration Date		Number of Contracts		Notional Amount			Premiums Paid		Market Value		Unrealized Appreciation/ (Depreciation)
Call - OTC - 30 Year IRS	2.450%	BBP	3M LIBOR	Pay		08/02/27		1,450,000		USD	1,450,000	$	209,074	$	150,770	$	(58,304	)
Call - OTC - 30 Year IRS	2.450%	BOA	3M LIBOR	Pay		08/02/27		1,260,000		USD	1,260,000		108,360		131,014		22,654
Put - OTC - 10 Year IRS	3.200%	DBAG	3M LIBOR	Receive		05/30/19		12,605,000		USD	12,605,000		187,814		36,364		(151,450	)
Put - OTC - 10 Year IRS	3.200%	BOA	3M LIBOR	Receive		05/30/19		8,825,000		USD	8,825,000		73,318		25,459		(47,859	)
Put - OTC - 10 Year IRS	3.200%	BOA	3M LIBOR	Receive		12/09/19		13,000,000		USD	13,000,000		178,100		116,420		(61,680	)
Put - OTC - 30 Year IRS	2.450%	BBP	3M LIBOR	Receive		08/02/27		1,450,000		USD	1,450,000		118,147		279,165		161,018
Put - OTC - 30 Year IRS	2.450%	BOA	3M LIBOR	Receive		08/02/27		1,260,000		USD	1,260,000		288,540		242,585		(45,955	)
Totals												$	1,163,353	$	981,777	$	(181,576	)

Written Options

Credit Default Swaptions	Strike Spread	Counterparty	Reference Obligation	Buy/Sell Protection		Expiration Date		Number of Contracts			Notional Amount				Premiums Received			Market Value			Unrealized Appreciation/ (Depreciation)
Call - OTC -5-Year CDS	0.775%	GSI	CDX.NA.IG.31		Buy		01/16/19		(35,536,000	)		USD	(35,536,000	)	$	(43,532	)	$	(7,224	)	$	36,308
Put - OTC -5-Year CDS	0.775%	GSI	CDX.NA.IG.31		Sell		01/16/19		(35,536,000	)		USD	(35,536,000	)		(104,831	)		(186,735	)		(81,904	)
Totals															$	(148,363	)	$	(193,959	)	$	(45,596	)

Swap Agreements

OTC Interest Rate Swaps

Pay/Receive Floating Rate	Floating Rate Index	Payment Frequency		Fixed Rate	Payment Frequency	Maturity Date		Counterparty	Notional Amount			Market Value			Upfront Premium Paid		Unrealized Appreciation/ (Depreciation)
Receive	12M CPI		Maturity	2.004%	Maturity		01/15/23	DBAG		USD	7,825,000	$	(75,227	)	$	3,081	$	(78,308	)
Receive	CPI-U		Annually	1.810%	Annually		09/04/25	BOA		USD	3,803,000		12,549			—		12,549
Totals												$	(62,678	)	$	3,081	$	(65,759	)

Centrally Cleared Interest Rate Swaps

Pay/Receive Floating Rate	Floating Rate Index		Payment Frequency	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Market Value			Upfront Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)
Receive		12M FEDRC	Annually		1.625	%		Annually		11/14/26		USD	2,610,000	$	140,084		$	—		$	140,084
Receive		3M LIBOR	Semi-Annually		2.000	%		Quarterly		03/21/23		USD	2,825,000		63,793			14,481			49,312
Receive		3M LIBOR	Semi-Annually		2.250	%		Quarterly		06/20/28		USD	22,048,000		828,987			1,228,985			(399,998	)
Receive		3M LIBOR	Semi-Annually		2.750	%		Quarterly		12/20/47		USD	3,955,000		71,472			(89,207	)		160,679
Receive		3M LIBOR	Semi-Annually		2.791	%		Quarterly		09/30/25		USD	6,500,000		(71,266	)		—			(71,266	)
Receive		3M LIBOR	Semi-Annually		2.831	%		Quarterly		12/21/28		USD	3,363,000		(35,770	)		—			(35,770	)
Receive		3M LIBOR	Semi-Annually		2.884	%		Quarterly		12/31/48		USD	300,000		(3,075	)		—			(3,075	)
Receive		3M LIBOR	Semi-Annually		3.000	%		Quarterly		04/30/25		USD	5,155,000		(121,874	)		25,493			(147,367	)
Receive		3M LIBOR	Semi-Annually		3.002	%		Quarterly		06/18/28		USD	2,679,000		(69,280	)		—			(69,280	)
Totals														$	803,071		$	1,179,752		$	(376,681	)

See accompanying notes to financial statements.

BHFTII-30

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(b)			Notional Amount(c)			Market Value			Upfront Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)
CDX.EM.30.V1		1.000	%		Quarterly		12/20/23		0.000	%		USD	7,715,000	$	(362,027	)	$	(365,814	)	$	3,787
CDX.NA.HY.31.V1		5.000	%		Quarterly		12/20/23		0.000	%		USD	4,360,000		86,908			160,492			(73,584	)
CDX.NA.IG.31.V1		1.000	%		Quarterly		12/20/23		0.000	%		USD	6,175,000		34,277			64,438			(30,161	)
ITRAXX.EUR.30.V1		1.000	%		Quarterly		12/20/23		0.000	%		EUR	5,120,000		33,801			93,853			(60,052	)
Totals														$	(207,041	)	$	(47,031	)	$	(160,010	)

OTC Credit Default Swaps on Sovereign Issues—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate			Payment Frequency		Maturity Date		Counterparty	Implied Credit Spread at December 31, 2018(b)			Notional Amount(c)			Market Value			Upfront Premium (Received)			Unrealized Appreciation/ (Depreciation)
Brazilian Government International Bond 4.250%, due 01/07/25		1.000	%		Quarterly		12/20/23	DBAG		0.000	%		USD	650,000	$	(30,578	)	$	(26,869	)	$	(3,709	)
Turkey Government International Bond 11.875%, due 01/15/30		1.000	%		Quarterly		12/20/23	MSIP		0.000	%		USD	350,000		(38,568	)		(42,933	)		4,365
Turkey Government International Bond 11.875%, due 01/15/30		1.000	%		Quarterly		12/20/23	GSI		0.000	%		USD	350,000		(38,568	)		(42,671	)		4,103
Totals															$	(107,714	)	$	(112,473	)	$	4,759

OTC Credit Default Swaps on Credit Indices—Buy Protection (a)

Reference Obligation	Fixed Deal (Pay) Rate			Payment Frequency		Maturity Date		Counterparty		Implied Credit Spread at December 31, 2018(b)			Notional Amount(c)			Market Value			Upfront Premium Paid/(Received)			Unrealized Appreciation/ (Depreciation)
ABX.HE.PEN.AAA.06-2 (e)		(0.110	%)		Monthly		05/25/46		JPMC		16.689	%		USD	173,752	$	(18,124	)	$	24,051		$	(42,175	)
PRIMEX.ARM.2		(4.580	%)		Monthly		12/25/37		MSIP		0.000	%		USD	318,260		—			(688	)		688
Totals																$	(18,124	)	$	23,363		$	(41,487	)

OTC Credit Default Swaps on Credit Indices—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
ABX.HE.PEN.AAA.06-2 (e)		0.110%		Monthly	05/25/46	BBP		16.689%		USD	173,752	$	(9,339)	$	(4,720)	$	(4,619)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	91,000		(25,582)		(15,473)		(10,109)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	265,000		(74,498)		(39,508)		(34,990)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	270,000		(75,904)		(53,314)		(22,590)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	460,000		(129,318)		(85,670)		(43,648)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	465,000		(130,723)		(86,601)		(44,122)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	465,000		(130,723)		(86,601)		(44,122)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	465,000		(130,723)		(86,601)		(44,122)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	CSI		15.409%		USD	645,000		(181,326)		(135,820)		(45,506)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	GSI		15.409%		USD	304,000		(85,462)		(50,355)		(35,107)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	GSI		15.409%		USD	530,000		(148,996)		(58,813)		(90,183)
CMBX.NA.BB.6		5.000%		Monthly	05/11/63	MSIP		15.409%		USD	190,000		(53,414)		(35,385)		(18,029)
CMBX.NA.BB.8		5.000%		Monthly	10/17/57	CSI		10.226%		USD	550,000		(118,395)		(156,166)		37,771
CMBX.NA.BB.8		5.000%		Monthly	10/17/57	GSI		10.226%		USD	241,000		(51,879)		(59,417)		7,538
CMBX.NA.BB.8		5.000%		Monthly	10/17/57	GSI		10.226%		USD	580,000		(124,853)		(181,510)		56,657
CMBX.NA.BB.8		5.000%		Monthly	10/17/57	MSIP		10.226%		USD	1,289,000		(277,475)		(365,997)		88,522

See accompanying notes to financial statements.

BHFTII-31

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

OTC Credit Default Swaps on Credit Indices—Sell Protection (d)—(Continued)

Reference Obligation	Fixed Deal Receive Rate		Payment Frequency		Maturity Date	Counterparty	Implied Credit Spread at December 31, 2018(b)		Notional Amount(c)			Market Value		Upfront Premium Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
CMBX.NA.BBB-.6		3.000%		Monthly	05/11/63	CSI		8.287%		USD	185,000	$	(29,833)	$	(26,509)	$	(3,324)
CMBX.NA.BBB-.6		3.000%		Monthly	05/11/63	DBAG		8.287%		USD	170,000		(27,414)		(25,789)		(1,625)
CMBX.NA.BBB-.6		3.000%		Monthly	05/11/63	GSI		8.287%		USD	660,000		(106,431)		(74,951)		(31,480)
CMBX.NA.BBB-.6		3.000%		Monthly	05/11/63	MSIP		8.287%		USD	90,000		(14,513)		(8,031)		(6,482)
CMBX.NA.BBB-.6		3.000%		Monthly	05/11/63	MSIP		8.287%		USD	830,000		(133,845)		(124,759)		(9,086)
PRIMEX.ARM.2		4.580%		Monthly	12/25/37	JPMC		0.000%		USD	318,260		—		9,557		(9,557)
Totals												$	(2,060,646)	$	(1,752,433)	$	(308,213)

(a)	If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(b)	Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c)	The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(d)	If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(e)	Significant unobservable inputs were used in the valuation of this position; i.e. Level 3.

Glossary of Abbreviations

Counterparties

(BBP)—	Barclays Bank plc
(BNP)—	BNP Paribas S.A.
(BOA)—	Bank of America N.A.
(CBNA)—	Citibank N.A.
(CSI)—	Credit Suisse International
(DBAG)—	Deutsche Bank AG
(GSI)—	Goldman Sachs International
(HSBC)—	HSBC Bank USA
(JPMC)—	JPMorgan Chase Bank N.A.
(MSIP)—	Morgan Stanley & Co. International plc
(NAB)—	National Australia Bank Ltd.
(RBC)—	Royal Bank of Canada
(SSBT)—	State Street Bank and Trust

Currencies

(ARS)—	Argentine Peso
(EGP)—	Egyptian Pound
(CAD)—	Canadian Dollar
(CHF)—	Swiss Franc
(EUR)—	Euro
(GBP)—	British Pound
(HUF)—	Hungarian Forint
(JPY)—	Japanese Yen
(USD)—	United States Dollar

Index Abbreviations

(ABX.HE.PEN.AAA)—	Markit Asset-Backed Home Equity Penultimate AAA Rated Index
(CDOR)—	Canadian Dollar Offered Rate
(CDX.EM)—	Markit Emerging Market CDS Index
(CDX.NA.HY)—	Markit North America High Yield CDS Index
(CDX.NA.IG)—	Markit North America Investment Grade CDS Index
(CMBX)—	Commercial Mortgage-Backed Index
(CMBX.NA.BB)—	Markit North America BB Rated CMBS Index
(CMBX.NA.BBB-)—	Markit North AmericaBBB- Rated CMBS Index
(CPI-U)—	U.S. Consumer Price Index for All Urban Consumers
(EURIBOR)—	Euro Interbank Offered Rate
(CPI)—	U.S. Consumer Price Index
(FEDRC)—	U.S. Federal Funds Rate Compounded
(FEDEFF PRV)—	Effective Federal Funds Rate
(ICE)—	Intercontinental Exchange, Inc.
(ITRAXX.EUR)—	Markit iTraxx Europe Index
(LIBOR)—	London Interbank Offered Rate
(MTA)—	Monthly Treasury Average Index
(PRIMEX.ARM)—	Markit PrimeX Adjustable RateMortgage Index

See accompanying notes to financial statements.

BHFTII-32

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Glossary of Abbreviations—(Continued)

Other Abbreviations

(ARM)—	Adjustable-Rate Mortgage
(ACES)—	Alternative Credit Enhancement Securities
(ADR)—	American Depositary Receipt
(CDO)—	Collateralized Debt Obligation
(CDS)—	Credit Default Swap
(CLO)—	Collateralized Loan Obligation
(CMO)—	Collateralized Mortgage Obligation
(IRS)—	Interest Rate Swap
(REMIC)—	Real Estate Mortgage Investment Conduit

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Aerospace & Defense	$	26,437,254	$	—	$	—	$	26,437,254
Air Freight & Logistics		383,159		—		—		383,159
Airlines		2,044,133		—		—		2,044,133
Banks		22,363,851		—		—		22,363,851
Beverages		13,508,837		—		—		13,508,837
Biotechnology		10,220,727		—		—		10,220,727
Capital Markets		19,002,623		—		—		19,002,623
Chemicals		13,993,300		—		—		13,993,300
Commercial Services & Supplies		4,610,839		—		—		4,610,839
Construction & Engineering		654,912		—		—		654,912
Construction Materials		694,008		—		—		694,008
Consumer Finance		5,423,732		—		—		5,423,732
Containers & Packaging		6,465,900		—		—		6,465,900
Diversified Consumer Services		415,534		—		—		415,534
Diversified Financial Services		4,209,181		—		—		4,209,181
Diversified Telecommunication Services		13,180,554		—		—		13,180,554
Electric Utilities		16,874,939		—		—		16,874,939
Electrical Equipment		3,434,128		—		—		3,434,128
Electronic Equipment, Instruments & Components		2,852,730		—		—		2,852,730
Energy Equipment & Services		4,174,122		—		—		4,174,122
Entertainment		7,852,344		—		—		7,852,344
Equity Real Estate Investment Trusts		21,848,349		—		—		21,848,349
Food & Staples Retailing		3,117,033		—		—		3,117,033
Food Products		12,730,804		—		—		12,730,804
Health Care Equipment & Supplies		30,879,836		—		—		30,879,836
Health Care Providers & Services		19,589,270		—		—		19,589,270
Hotels, Restaurants & Leisure		12,678,696		—		—		12,678,696
Household Durables		2,385,936		—		—		2,385,936
Independent Power and Renewable Electricity Producers		4,396,075		—		—		4,396,075
Industrial Conglomerates		5,452,451		—		—		5,452,451
Insurance		27,753,822		—		—		27,753,822
Interactive Media & Services		29,426,643		—		—		29,426,643
Internet & Direct Marketing Retail		37,865,147		—		—		37,865,147
IT Services		31,104,456		—		—		31,104,456

See accompanying notes to financial statements.

BHFTII-33

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2		Level 3		Total
Life Sciences Tools & Services	$	6,734,512	$	—	$	—	$	6,734,512
Machinery		10,286,772		—		—		10,286,772
Marine		878,038		—		—		878,038
Media		16,284,486		—		—		16,284,486
Metals & Mining		1,492,801		—		—		1,492,801
Multi-Utilities		5,793,791		—		—		5,793,791
Oil, Gas & Consumable Fuels		31,499,863		3,007		0		31,502,870
Personal Products		5,164,263		—		—		5,164,263
Pharmaceuticals		31,910,673		—		—		31,910,673
Professional Services		6,685,811		—		—		6,685,811
Road & Rail		4,938,817		—		—		4,938,817
Semiconductors & Semiconductor Equipment		20,813,664		—		—		20,813,664
Software		42,937,115		—		—		42,937,115
Specialty Retail		13,246,364		—		—		13,246,364
Technology Hardware, Storage & Peripherals		14,307,964		—		—		14,307,964
Textiles, Apparel & Luxury Goods		8,862,410		—		—		8,862,410
Thrifts & Mortgage Finance		1,200,850		—		—		1,200,850
Tobacco		13,661,860		—		—		13,661,860
Trading Companies & Distributors		1,554,517		—		—		1,554,517
Total Common Stocks		656,279,896		3,007		0		656,282,903
Total U.S. Treasury & Government Agencies*		—		298,623,005		—		298,623,005
Corporate Bonds & Notes
Aerospace/Defense		—		2,492,067		—		2,492,067
Agriculture		—		3,242,489		—		3,242,489
Airlines		—		456,536		—		456,536
Auto Manufacturers		—		3,800,745		—		3,800,745
Auto Parts & Equipment		—		54,000		—		54,000
Banks		—		39,081,709		0		39,081,709
Beverages		—		4,681,684		—		4,681,684
Biotechnology		—		1,481,277		—		1,481,277
Building Materials		—		219,752		—		219,752
Chemicals		—		4,438,689		—		4,438,689
Commercial Services		—		2,565,215		—		2,565,215
Computers		—		1,590,709		—		1,590,709
Distribution/Wholesale		—		48,430		—		48,430
Diversified Financial Services		—		1,852,181		—		1,852,181
Electric		—		8,014,720		—		8,014,720
Electronics		—		380,932		—		380,932
Engineering & Construction		—		1,684,874		—		1,684,874
Entertainment		—		152,600		—		152,600
Food		—		2,025,495		—		2,025,495
Food Service		—		130,662		—		130,662
Forest Products & Paper		—		204,100		—		204,100
Gas		—		86,688		—		86,688
Healthcare-Products		—		2,073,903		—		2,073,903
Healthcare-Services		—		3,072,290		—		3,072,290
Home Builders		—		292,112		—		292,112
Insurance		—		613,756		—		613,756
Internet		—		2,410,967		—		2,410,967
Iron/Steel		—		1,421,845		—		1,421,845
Leisure Time		—		27,675		—		27,675
Lodging		—		4,663		—		4,663
Machinery-Construction & Mining		—		103,678		—		103,678
Machinery-Diversified		—		54,929		—		54,929
Media		—		9,195,719		—		9,195,719
Mining		—		1,430,629		—		1,430,629
Miscellaneous Manufacturing		—		222,868		—		222,868

See accompanying notes to financial statements.

BHFTII-34

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2		Level 3		Total
Office/Business Equipment	$	—	$	172,087	$	—	$	172,087
Oil & Gas		—		5,001,633		—		5,001,633
Packaging & Containers		—		770,320		—		770,320
Pharmaceuticals		—		8,787,396		—		8,787,396
Pipelines		—		4,041,718		—		4,041,718
Real Estate Investment Trusts		—		885,877		—		885,877
Retail		—		2,122,944		—		2,122,944
Semiconductors		—		4,008,511		—		4,008,511
Software		—		1,886,310		—		1,886,310
Telecommunications		—		7,634,592		—		7,634,592
Transportation		—		1,421,619		—		1,421,619
Trucking & Leasing		—		28,913		—		28,913
Total Corporate Bonds & Notes		—		136,372,508		0		136,372,508
Asset-Backed Securities
Asset-Backed - Automobile		—		2,214,006		—		2,214,006
Asset-Backed - Home Equity		—		2,176,175		—		2,176,175
Asset-Backed - Other		—		94,073,515		0		94,073,515
Total Asset-Backed Securities		—		98,463,696		0		98,463,696
Total Mortgage-Backed Securities*		—		51,671,817		—		51,671,817
Floating Rate Loans
Aerospace/Defense		—		141,818		—		141,818
Auto Manufacturers		—		95,528		—		95,528
Building Materials		—		210,339		—		210,339
Chemicals		—		173,461		—		173,461
Commercial Services		—		1,394,982		—		1,394,982
Computers		—		198,576		��		198,576
Cosmetics/Personal Care		—		345,984		—		345,984
Diversified Financial Services		—		170,307		—		170,307
Energy Equipment & Services		—		81,365		—		81,365
Entertainment		—		161,147		—		161,147
Food		—		95,143		—		95,143
Food Products		—		102,823		—		102,823
Healthcare-Products		—		94,500		—		94,500
Healthcare-Services		—		486,518		—		486,518
Insurance		—		680,705		—		680,705
Internet		—		72,193		—		72,193
Internet & Direct Marketing Retail		—		147,472		—		147,472
IT Services		—		94,981		—		94,981
Leisure Time		—		317,510		—		317,510
Life Sciences Tools & Services		—		73,832		—		73,832
Lodging		—		464,709		—		464,709
Machinery		—		99,012		—		99,012
Machinery-Construction & Mining		—		97,075		—		97,075
Machinery-Diversified		—		174,119		—		174,119
Media		—		322,241		—		322,241
Miscellaneous Manufacturing		—		109,555		—		109,555
Office/Business Equipment		—		140,436		—		140,436
Oil & Gas		—		549,617		0		549,617
Packaging & Containers		—		484,441		—		484,441
Pharmaceuticals		—		477,299		—		477,299
Pipelines		—		271,414		—		271,414
Real Estate Investment Trusts		—		91,708		—		91,708
Retail		—		564,866		219,422		784,288
Semiconductors & Semiconductor Equipment		—		86,025		—		86,025
Software		—		761,323		—		761,323
Telecommunications		—		516,044		—		516,044

See accompanying notes to financial statements.

BHFTII-35

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—  (Continued)

Description	Level 1			Level 2			Level 3			Total
Transportation	$	—		$	94,582		$	—		$	94,582
Total Floating Rate Loans		—			10,443,650			219,422			10,663,072
Total Foreign Government*		—			6,117,085			—			6,117,085
Total Municipals		—			3,243,479			—			3,243,479
Total Short-Term Investments*		—			25,978,239			—			25,978,239
Total Securities Lending Reinvestments*		—			47,565,547			—			47,565,547
Purchased Options at Value	$	—		$	981,777		$	—		$	981,777
Total Investments	$	656,279,896		$	679,463,810		$	219,422		$	1,335,963,128
Collateral for Securities Loaned (Liability)	$	—		$	(47,560,951	)	$	—		$	(47,560,951	)
TBA Forward Sales Commitments	$	—		$	(35,889,293	)	$	—		$	(35,889,293	)
Forward Contracts
Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)	$	—		$	118,068		$	—		$	118,068
Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)		—			(428,614	)		—			(428,614	)
Total Forward Contracts	$	—		$	(310,546	)	$	—		$	(310,546	)
Futures Contracts
Futures Contracts (Unrealized Appreciation)	$	2,062,862		$	—		$	—		$	2,062,862
Futures Contracts (Unrealized Depreciation)		(512,907	)		—			—			(512,907	)
Total Futures Contracts	$	1,549,955		$	—		$	—		$	1,549,955
Written Options at Value	$	—		$	(193,959	)	$	—		$	(193,959	)
Centrally Cleared Swap Contracts
Centrally Cleared Swap Contracts (Unrealized Appreciation)	$	—		$	353,862		$	—		$	353,862
Centrally Cleared Swap Contracts (Unrealized Depreciation)		—			(890,553	)		—			(890,553	)
Total Centrally Cleared Swap Contracts	$	—		$	(536,691	)	$	—		$	(536,691	)
OTC Swap Contracts
OTC Swap Contracts at Value (Assets)	$	—		$	12,549		$	—		$	12,549
OTC Swap Contracts at Value (Liabilities)		—			(2,234,248	)		(27,463	)		(2,261,711	)
Total OTC Swap Contracts	$	—		$	(2,221,699	)	$	(27,463	)	$	(2,249,162	)

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the period ended December 31, 2018 is not presented.

See accompanying notes to financial statements.

BHFTII-36

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,335,963,128
Cash		557,071
Cash denominated in foreign currencies (c)		4,667,315
Cash collateral for futures contracts		323,400
OTC swap contracts at market value (d)		12,549
Unrealized appreciation on forward foreign currency exchange contracts		118,068
Receivable for:
Investments sold		1,808,550
TBA securities sold (e)		93,627,063
Fund shares sold		16,293
Principal paydowns		453
Dividends and interest		3,703,801
Variation margin on futures contracts		164,692
Interest on OTC swap contracts		9,376
Prepaid expenses		3,342
Total Assets		1,440,975,101
Liabilities
Written options at value (f)		193,959
TBA forward sales commitments, at value		35,889,293
OTC swap contracts at market value (g)		2,261,711
Unrealized depreciation on forward foreign currency exchange contracts		428,614
Collateral for securities loaned		47,560,951
Payables for:
Investments purchased		1,843,557
TBA securities purchased (e)		214,208,038
Fund shares redeemed		681,120
Variation margin on centrally cleared swap contracts		190,392
Premium on purchased options		1,394,638
Interest on OTC swap contracts		920
Accrued Expenses:
Management fees		428,652
Distribution and service fees		15,950
Deferred trustees’ fees		113,116
Other expenses		539,229
Total Liabilities		305,750,140
Net Assets	$	1,135,224,961
Net Assets Consist of:
Paid in surplus	$	1,040,251,040
Distributable earnings (Accumulated losses)		94,973,921
Net Assets	$	1,135,224,961
Net Assets
Class A	$	1,050,483,019
Class B		57,223,535
Class E		27,518,407
Capital Shares Outstanding*
Class A		58,964,198
Class B		3,235,036
Class E		1,548,984
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	17.82
Class B		17.69
Class E		17.77

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $1,338,148,163.
(b)	Includes securities loaned at value of $47,643,999.
(c)	Identified cost of cash denominated in foreign currencies was $4,516,615.
(d)	Net premium paid on OTC swap contracts was $8,869.
(e)	Included within TBA securities sold is $61,238,178 related to TBA forward sale commitments and included within TBA securities purchased is $25,687,926 related to TBA forward sale commitments.
(f)	Premiums received on written options were $148,363.
(g)	Net premium received on OTC swap contracts was $1,847,331.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	12,094,078
Interest		17,883,331
Securities lending income		208,236
Total investment income		30,185,645
Expenses
Management fees		5,793,112
Administration fees		51,280
Custodian and accounting fees		421,155
Distribution and service fees—Class B		161,303
Distribution and service fees—Class E		46,381
Audit and tax services		110,757
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		230,731
Insurance		8,148
Miscellaneous		26,649
Total expenses		6,928,567
Less management fee waiver		(389,598	)
Less broker commission recapture		(5,937	)
Net expenses		6,533,032
Net Investment Income		23,652,613
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (b)		79,489,343
Purchased options		(78,534	)
Futures contracts		(5,258,040	)
Written options		276,219
Swap contracts		591,478
Foreign currency transactions		441,715
Forward foreign currency transactions		95,988
Net realized gain		75,558,169
Net change in unrealized appreciation (depreciation) on:
Investments		(143,261,421	)
Purchased options		(2,552	)
Futures contracts		1,955,243
Written options		(45,596	)
Swap contracts		(868,990	)
Foreign currency transactions		156,217
Forward foreign currency transactions		(252,031	)
Net change in unrealized depreciation		(142,319,130	)
Net realized and unrealized loss		(66,760,961	)
Net Decrease in Net Assets From Operations	$	(43,108,348	)

(a)	Net of foreign withholding taxes of $59,526.
(b)	Net of foreign capital gains tax of $17,262.

See accompanying notes to financial statements.

BHFTII-37

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	23,652,613		$	22,513,631
Net realized gain		75,558,169			95,158,203
Net change in unrealized appreciation (depreciation)		(142,319,130	)		61,754,743
Increase (decrease) in net assets from operations		(43,108,348	)		179,426,577
From Distributions to Shareholders (a)
Class A		(108,001,794	)		(50,732,601	)
Class B		(5,815,748	)		(2,837,549	)
Class E		(2,808,549	)		(1,344,407	)
Total distributions		(116,626,091	)		(54,914,557	)
Decrease in net assets from capital share transactions		(2,290,481	)		(60,192,162	)
Total increase (decrease) in net assets		(162,024,920	)		64,319,858
Net Assets
Beginning of period		1,297,249,881			1,232,930,023
End of period	$	1,135,224,961		$	1,297,249,881	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		816,982		$	16,360,943			647,009		$	12,618,917
Reinvestments		5,693,294			108,001,794			2,635,460			50,732,601
Redemptions		(6,222,593	)		(121,906,443	)		(6,017,988	)		(117,837,726	)
Net increase (decrease)		287,683		$	2,456,294			(2,735,519	)	$	(54,486,208	)
Class B
Sales		166,988		$	3,267,332			217,028		$	4,181,628
Reinvestments		308,364			5,815,748			148,175			2,837,549
Redemptions		(640,333	)		(12,596,842	)		(580,492	)		(11,297,437	)
Net decrease		(164,981	)	$	(3,513,762	)		(215,289	)	$	(4,278,260	)
Class E
Sales		27,556		$	537,191			57,637		$	1,115,254
Reinvestments		148,365			2,808,549			69,948			1,344,407
Redemptions		(233,060	)		(4,578,753	)		(199,319	)		(3,887,355	)
Net decrease		(57,139	)	$	(1,233,013	)		(71,734	)	$	(1,427,694	)
Decrease derived from capital shares transactions				$	(2,290,481	)				$	(60,192,162	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(22,501,887	)	$	(28,230,714	)
Class B		(1,167,169	)		(1,670,380	)
Class E		(570,158	)		(774,249	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $22,368,067 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-38

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	20.38		$	18.49		$	18.66		$	22.29		$	20.59
Income (Loss) from Investment Operations
Net investment income (a)		0.37			0.35			0.37	(b)		0.38			0.39
Net realized and unrealized gain (loss)		(1.02	)		2.40			0.88			0.24			1.73
Total income (loss) from investment operations		(0.65	)		2.75			1.25			0.62			2.12
Less Distributions
Distributions from net investment income		(0.36	)		(0.38	)		(0.53	)		(0.45	)		(0.42	)
Distributions from net realized capital gains		(1.55	)		(0.48	)		(0.89	)		(3.80	)		0.00
Total distributions		(1.91	)		(0.86	)		(1.42	)		(4.25	)		(0.42	)
Net Asset Value, End of Period	$	17.82		$	20.38		$	18.49		$	18.66		$	22.29
Total Return (%) (c)		(3.76	)		15.14			6.99			2.58			10.55
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.53			0.54			0.55			0.54			0.53
Gross ratio of expenses to average net assets excluding interest expense (%)		0.53			0.54			0.55			0.54			0.53
Net ratio of expenses to average net assets (%) (d)(e)		0.50			0.51			0.52			0.51			0.50
Net ratio of expenses to average net assets excluding interest expense (%) (d)(e)		0.50			0.51			0.52			0.51			0.50
Ratio of net investment income to average net assets (%)		1.89			1.78			2.02	(b)		1.87			1.81
Portfolio turnover rate (%)		341	(f)		342	(f)		405	(f)		299	(f)		413	(f)
Net assets, end of period (in millions)	$	1,050.5		$	1,195.7		$	1,135.6		$	1,168.2		$	1,250.6
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	20.24		$	18.37		$	18.54		$	22.17		$	20.48
Income (Loss) from Investment Operations
Net investment income (a)		0.32			0.30			0.32	(b)		0.33			0.33
Net realized and unrealized gain (loss)		(1.01	)		2.38			0.88			0.23			1.73
Total income (loss) from investment operations		(0.69	)		2.68			1.20			0.56			2.06
Less Distributions
Distributions from net investment income		(0.31	)		(0.33	)		(0.48	)		(0.39	)		(0.37	)
Distributions from net realized capital gains		(1.55	)		(0.48	)		(0.89	)		(3.80	)		0.00
Total distributions		(1.86	)		(0.81	)		(1.37	)		(4.19	)		(0.37	)
Net Asset Value, End of Period	$	17.69		$	20.24		$	18.37		$	18.54		$	22.17
Total Return (%) (c)		(4.01	)		14.85			6.74			2.29			10.28
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.78			0.79			0.80			0.79			0.78
Gross ratio of expenses to average net assets excluding interest expense (%)		0.78			0.79			0.80			0.79			0.78
Net ratio of expenses to average net assets (%) (d)(e)		0.75			0.76			0.77			0.76			0.75
Net ratio of expenses to average net assets excluding interest expense (%) (d)(e)		0.75			0.76			0.77			0.76			0.75
Ratio of net investment income to average net assets (%)		1.64			1.53			1.77	(b)		1.62			1.56
Portfolio turnover rate (%)		341	(f)		342	(f)		405	(f)		299	(f)		413	(f)
Net assets, end of period (in millions)	$	57.2		$	68.8		$	66.4		$	66.6		$	71.6

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-39

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	20.33		$	18.44		$	18.61		$	22.24		$	20.54
Income (Loss) from Investment Operations
Net investment income (a)		0.34			0.32			0.34	(b)		0.35			0.35
Net realized and unrealized gain (loss)		(1.02	)		2.40			0.87			0.23			1.74
Total income (loss) from investment operations		(0.68	)		2.72			1.21			0.58			2.09
Less Distributions
Distributions from net investment income		(0.33	)		(0.35	)		(0.49	)		(0.41	)		(0.39	)
Distributions from net realized capital gains		(1.55	)		(0.48	)		(0.89	)		(3.80	)		0.00
Total distributions		(1.88	)		(0.83	)		(1.38	)		(4.21	)		(0.39	)
Net Asset Value, End of Period	$	17.77		$	20.33		$	18.44		$	18.61		$	22.24
Total Return (%) (c)		(3.88	)		14.95			6.83			2.41			10.41
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.68			0.69			0.70			0.69			0.68
Gross ratio of expenses to average net assets excluding interest expense (%)		0.68			0.69			0.70			0.69			0.68
Net ratio of expenses to average net assets (%) (d)(e)		0.65			0.66			0.67			0.66			0.65
Net ratio of expenses to average net assets excluding interest expense (%) (d)(e)		0.65			0.66			0.67			0.66			0.65
Ratio of net investment income to average net assets (%)		1.74			1.63			1.87	(b)		1.72			1.66
Portfolio turnover rate (%)		341	(f)		342	(f)		405	(f)		299	(f)		413	(f)
Net assets, end of period (in millions)	$	27.5		$	32.6		$	30.9		$	32.4		$	36.1

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.04% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(e)	The effect of the voluntary portion of the waivers on the net ratio of expenses to average net assets was 0.03% for the years ended December 31, 2018 through 2014. (see Note 6 of the Notes to Financial Statements).
(f)	Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 62%, 74%, 58%, 71% and 163% for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively.

See accompanying notes to financial statements.

BHFTII-40

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse/Wellington Balanced Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued on the basis of evaluated or composite bid quotations obtained from pricing services selected by the Adviser pursuant to authorization of and subject to general oversight by the Board. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or

BHFTII-41

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Foreign currency forward contracts are valued through an independent pricing service by interpolating between forward and spot currency rates in the London foreign exchange markets as of a designated hour on a valuation day. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

Options, including options on swaps (“swaptions”), currencies, and futures contracts that are traded OTC are generally valued on the basis of interdealer bid and ask prices or prices provided by pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) aremarked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or a pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third-party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s Custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the Custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

BHFTII-42

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Mortgage Dollar Rolls -The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sellsto-be-announced (“TBA”) mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase or reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation, and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

Mortgage-Related and Other Asset-Backed Securities - The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

BHFTII-43

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

TBA Purchase and Forward Sale Commitments -The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

When-Issued and Delayed-Delivery Securities- The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s Custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

High-Yield Debt Securities - The Portfolio may invest in high-yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high-yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high-yield debt securities are generally less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights ofset-off against the borrower. The Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments, it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

The Portfolio will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling the participation, the Portfolio may be treated as a general creditor of the lender and may not benefit from anyset-off between the lender and the borrower.

Unfunded Loan Commitments - The Portfolio may enter into certain credit agreements, all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of December 31, 2018, the Portfolio did not have any unfunded loan commitments.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a

BHFTII-44

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $11,100,548. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $14,825,176. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(43,587,787	)	$	—	$	—	$	—	$	(43,587,787	)
Corporate Bonds & Notes		(3,973,164	)		—		—		—		(3,973,164	)
Total	$	(47,560,951	)	$	—	$	—	$	—	$	(47,560,951	)
Total Borrowings	$	(47,560,951	)	$	—	$	—	$	—	$	(47,560,951	)
Gross amount of recognized liabilities for securities lending transactions										$	(47,560,951	)

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign

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currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed-upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the valuation date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio may also experience losses even when such contracts are used for hedging purposes. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts -The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

Options Contracts -An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain investment exposure to a target asset class or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option is worthless when it expires and the premium paid for the option is considered a realized loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

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Purchases of put and call options are recorded as investments, the value of which aremarked-to-market daily. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received by the Portfolio for a written option is recorded as an asset and an equivalent liability. The liability is subsequentlymarked-to-market to reflect the current value of the option written. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received by the Portfolio is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swaptions are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement at any time before the expiration of the option.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are either privately negotiated in the OTC market (“OTC swaps”) or executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Centrally Cleared Swaps:Clearinghouses currently offer clearing derivative transactions which include interest rate and credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction.

Swap agreements aremarked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received upon entering into the swap agreement compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit, and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master

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netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (referred to as the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement provided that no credit event has occurred. As the seller of protection, the Portfolio will effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may be worthless when it expires and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event involving an entity in the index, the credit event is settled based on that entity’s weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer, serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2018, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust its interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal

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course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include: (1) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; (2) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and (3) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels; and (4) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive.

Spreadlock Swap Contracts: The Portfolio may invest in spreadlock swap contracts. These contracts involve commitments to pay or receive a settlement amount calculated as the spread difference between two interest rate curves and a fixed spread at a specific forward date determined at the beginning of the contract. Settlement amounts paid or received are recorded as a realized gain or loss on the Statements of Operations at the determination date.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Asset Derivatives			Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value		Statement of Assets & Liabilities Location	Fair Value
Interest Rate	Investments at market value (a)	$	981,777
	OTC swap contracts at market value (b)		12,549	OTC swap contracts at market value (b)	$	75,227
	Unrealized appreciation on centrally cleared swap contracts (c) (e)		350,075	Unrealized depreciation on centrally cleared swap contracts (c) (e)		726,756
	Unrealized appreciation on futures contracts (d) (e)		2,016,844	Unrealized depreciation on futures contracts (d) (e)		512,907
Credit				Written options at value		193,959
				OTC swap contracts at market value (b)		2,186,484
	Unrealized appreciation on centrally cleared swap contracts (c) (e)		3,787	Unrealized depreciation on centrally cleared swap contracts (c) (e)		163,797
Equity	Unrealized appreciation on futures contracts (d) (e)		46,018
Foreign Exchange	Unrealized appreciation on forward foreign currency exchange contracts		118,068	Unrealized depreciation on forward foreign currency exchange contracts		428,614
Total		$	3,529,118		$	4,287,744

(a)	Represents purchased options which are part of investments at value as shown in the Statement of Assets and Liabilities.
(b)	Excludes OTC swap interest receivable of $9,376 and OTC swap interest payable of $920.
(c)	Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.
(d)	Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.
(e)	Financial instrument not subject to a master netting agreement.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

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The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2018.

Counterparty	Derivative Assets subject to an MNA by Counterparty		Financial Instruments available for offset			Collateral Received†		Net Amount*
Bank of America N.A.	$	546,373	$	(162,794	)	$	—	$	383,579
Barclays Bank plc		429,935		(9,339	)		—		420,596
BNP Paribas S.A.		8,250		—			—		8,250
Deutsche Bank AG		38,477		(38,477	)		—		—
HSBC Bank USA		28,936		(1,984	)		—		26,952
JPMorgan Chase Bank N.A.		1,147		(1,147	)		—		—
Morgan Stanley & Co. International plc		10,433		(10,433	)		—		—
National Australia Bank Ltd.		860		—			—		860
Royal Bank of Canada		5,498		—			—		5,498
State Street Bank and Trust		42,485		(42,485	)		—		—
	$	1,112,394	$	(266,659	)	$	—	$	845,735

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2018.

Counterparty	Derivative Liabilities subject to an MNA by Counterparty		Financial Instruments available for offset			Collateral Pledged†			Net Amount**
Bank of America N.A.	$	162,794	$	(162,794	)	$	—		$	—
Barclays Bank plc		9,339		(9,339	)		—			—
Citibank N.A.		20,864		—			—			20,864
Credit Suisse International		1,027,025		—			(994,117	)		32,908
Deutsche Bank AG		133,219		(38,477	)		(94,742	)		—
Goldman Sachs International		753,422		—			(753,422	)		—
HSBC Bank USA		1,984		(1,984	)		—			—
JPMorgan Chase Bank N.A.		149,182		(1,147	)		—			148,035
Morgan Stanley & Co. International plc		517,815		(10,433	)		(507,382	)		—
State Street Bank and Trust		108,640		(42,485	)		—			66,155
	$	2,884,284	$	(266,659	)	$	(2,349,663	)	$	267,962

*	Net amount represents the net amount receivable from the counterparty in the event of default.
**	Net amount represents the net amount payable due to the counterparty in the event of default.
†	In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Interest Rate			Credit			Equity		Foreign Exchange			Total
Purchase options	$	(78,534	)	$	—		$	—	$	—		$	(78,534	)
Forward foreign currency transactions		—			—			—		95,988			95,988
Swap contracts		751,130			(159,652	)		—		—			591,478
Futures contracts		(5,303,910	)		—			45,870		—			(5,258,040	)
Written options		(154,613	)		430,832			—		—			276,219
	$	(4,785,927	)	$	271,180		$	45,870	$	95,988		$	(4,372,889	)
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Interest Rate			Credit			Equity		Foreign Exchange			Total
Purchase options	$	(2,552	)	$	—		$	—	$	—		$	(2,552	)
Forward foreign currency transactions		—			—			—		(252,031	)		(252,031	)
Futures contracts		1,909,225			—			46,018		—			1,955,243
Swap contracts		(623,802	)		(245,188	)		—		—			(868,990	)
Written options		—			(45,596	)		—		—			(45,596	)
	$	1,282,871		$	(290,784	)	$	46,018	$	(252,031	)	$	786,074

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Notes to Financial Statements—December 31, 2018—(Continued)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Forward foreign currency transactions	$	21,230,652
Futures contracts long		107,856,139
Futures contracts short		(48,833,783	)
Purchased options		36,798,500
Swap contracts		105,161,045
Written options		(168,632,000	)

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange-traded derivatives (e.g., futures contracts and exchange-traded options), while collateral terms are contract specific for OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the

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Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk:The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar rolls and TBA transactions but excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$3,830,924,369	$	656,081,595	$	3,741,998,883	$	747,826,098

The Portfolio engaged in security transactions with other accounts managed by Wellington Management Company LLP, the subadviser to the Portfolio, that amounted to $6,089,750 in purchases, which are included above.

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2018 were as follows:

Purchases	Sales
$3,722,077,628	$	3,634,582,082

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$5,793,112		0.500	%	Of the first $500 million
		0.450	%	Of the next $500 million
		0.400	%	On amounts in excess of $1 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Wellington Management Company LLP (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum reduction	Average Daily Net Assets
0.020%	On the first $	500 million

Any reductions in total advisory fees paid by the Portfolio due to these waivers may be reduced or eliminated by changes in the advisory fee structure at higher asset levels. Brighthouse Investment Advisers will receive advisory fees equal to 0.480% of the

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Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Portfolio’s average daily net assets for amounts over $500 million but less than $750 million (0.030% over the contractual advisory fee rate) and 0.460% for amounts over $750 million but less than $1 billion (0.010% over the contractual advisory fee rate). As a result, the dollar amount of the waiver will be reduced as assets grow beyond $500 million up to $1 billion, but the advisory fee net of waivers will never exceed the contractual dollar amount that would otherwise be payable under the advisory fee. An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

The Subadviser has voluntarily agreed to waive a portion of its subadvisory fees payable by the Adviser to the Subadviser for managing the Portfolio. In addition to the above advisory fee agreement, the Adviser has agreed to reduce its advisory fee reflecting a portion of the amount waived by the Subadviser for managing the Portfolio pursuant to the voluntary subadvisory fee waiver. $389,598 was waived in the aggregate for the year ended December 31, 2018 and is reflected in the total amount shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,304,013,399
Gross unrealized appreciation		88,062,692
Gross unrealized depreciation		(93,347,268	)
Net unrealized appreciation (depreciation)	$	(5,284,576	)

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Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$42,747,765	$	30,592,475	$	73,878,326	$	24,322,082	$	116,626,091	$	54,914,557

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$28,095,055	$	72,125,746	$	(5,133,764	)	$	—	$	95,087,037

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards Update No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)—Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this standards update to the Portfolio.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

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Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse/Wellington Balanced Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Wellington Balanced Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Wellington Balanced Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

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Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

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Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

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Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

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Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-59

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-60

Brighthouse Funds Trust II

Brighthouse/Wellington Balanced Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse/Wellington Balanced Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Wellington Management Company LLP regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its blended benchmark, the S&P 500 Index (60%) & Bloomberg Barclays U.S. Aggregate Bond Index (40%), for theone-, three- and five-year periods ended September 30, 2018. In addition, the Board noted that theSub-Adviser did not manage the Portfolio for all of the periods referenced.

The Board also considered that the Portfolio’s actual management fee and total expenses (exclusive of12b-l fees) were below the Expense Group median, Expense Universe median, andSub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-61

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Managed by Wellington Management Company LLP

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Brighthouse/Wellington Core Equity Opportunities Portfolio returned-0.09%,-0.35%, and-0.25%, respectively. The Portfolio’s benchmark, the Russell 1000 Index¹, returned-4.78%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities posted negative results over the trailing twelve-month period ended December 31, 2018. The Federal Reserve raised its benchmark interest rate by 25 basis points four times during the year, in line with expectations, and potentially signaling a more dovish path heading into 2019. Bullish sentiment was exceptionally strong to start the year, as better-than-expected corporate profits helped drive U.S. equities higher. Signs of inflation entered the market in February and led to heightened levels of volatility, a theme that continued for the remainder of the period. By the summer of 2018, talk of tariffs and trade wars had progressed to implementation, and raised concerns in an otherwise strong economy. Nonetheless, positive sentiment persisted, fueled by robust earnings growth, fiscal stimulus, the announcement of a preliminary trade deal between the U.S. and Mexico, and expectations for stronger U.S. economic growth relative to other regions of the world. This changed in the final months of 2018, when concerns surrounding slowing global growth, rich valuations, rising central bank benchmark interest rates, and capricious U.S. and China trade tensions were at the forefront of investors’ minds. Returns in October and December were sharply negative, with the latter representing the largest U.S. equity market monthly decline seen this decade, culminating the first year of negative U.S. equity returns since 2008.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio outperformed its benchmark, the Russell 1000 Index, for the period ended December 31, 2018. Positive stock selection within Consumer Discretionary, Consumer Staples, and Materials sectors was only partially offset by weaker selection within Energy and Health Care. Sector allocation, a result of thebottom-up stock selection process, detracted from performance due to the Portfolio’s underweight allocation to Information Technology (“IT”) and overweight allocation to Industrials.

The Portfolio’s positions in TJX Companies, Nike, and American Tower were among the top relative contributors during the period. Shares of TJX Companies, the largestglobal-off price apparel and home goods retailer, advanced during the period on strong adjusted earnings per share. Results were solid across the board as sales, gross profit, and operating profit all increased year-over-year. We believe TJX can achieve same-stores sales growth as it captures new customers with strong inventory management, targeted marketing, and excellent execution by atop-tier management team. In addition, the company we believe, was uniquely positioned among large caps as it has potential to outperform in both offensive and defensive macro environments. TJX was also less exposed to disaggregating by internet competitors due to the “treasure hunt” experience offered to customers who visited their stores. We viewed the company as a high quality, cash generative, dominant value creator and distributor.

Nike, a provider of athletic footwear, apparel and accessories, reported strong earnings during the period. The company announced its new innovation platforms were all working, sales were accelerating across all regions and channels (including the U.S.), gross margins were finally beating estimates, and inventory issues were improving. We continued to believe that Nike will successfully make the transformation to a more nimble, digitally-focused, customer-centric, global, and innovative company.

Shares of American Tower, a U.S.-based leading owner and operator of wireless communications, rose during the period. The company has three main flywheels driving growth forward (U.S. platform, international platform, and innovation platform), and management was extremely disciplined and has created a culture that rewarded risk taking and innovation.

The Portfolio’s position in Schlumberger and not holding benchmark constituent Amazon were among the top relative detractors during the period. Cardinal Health and McKesson, which we eliminated towards the end of the period, also negatively affected performance. Shares of U.S.-based energy services company Schlumberger fell as energy was the worst performing sector during the period as oil prices plunged. We were selling Schlumberger throughout the period as we had concerns about the company’s longer-term dividend growth capabilities and the potential for a dividend cut.

During the period we eliminated the Portfolio’s holdings in McKesson, a U.S.-based global drug distribution company. The stock faced several headwinds, which included ongoing generic price deflation and heightened competition in the individual pharmacy market. In addition, investors feared Amazon may enter the drug distribution industry. While the Amazon threat was a small part of the changing risk profile of the firm, there were other company and industry specific issues which have caused us to exit McKesson, most notably potential legal liability from the opioid crisis, continued struggles with price inflation, and heightened government/regulatory scrutiny. The company’s earnings werein-line with expectations, but management commentary about July’s brand price inflation (lower than expectations) and the government’s intensifying focus on addressing high drug prices by going after the current rebate system suggested that distributors continued to face tough headwinds and numbers were likely to come down further.

BHFTII-1

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Managed by Wellington Management Company LLP

Portfolio Manager Commentary*—(Continued)

At the end of the period, the Portfolio was most overweight the Consumer Staples and Industrial sectors and most underweight the IT and Communication Services sectors.

Donald J. Kilbride

Portfolio Manager

Wellington Management Company LLP

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

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Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse/Wellington Core Equity Opportunities Portfolio
Class A		-0.09		7.66		11.97
Class B		-0.35		7.39		11.69
Class E		-0.25		7.50		11.80
Russell 1000 Index		-4.78		8.21		13.28

¹ The Russell 1000 Index is an unmanaged measure of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 90% of the investable U.S. equity market.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
McDonald’s Corp.		3.8
Coca-Cola Co. (The)		3.6
American Tower Corp.		3.5
PepsiCo, Inc.		3.3
Chubb, Ltd.		3.1
Johnson & Johnson		3.1
Microsoft Corp.		3.0
NIKE, Inc.- Class B		2.8
Colgate-Palmolive Co.		2.8
Medtronic plc		2.8

Top Sectors

	% of Net Assets
Industrials		18.9
Health Care		16.7
Consumer Staples		16.6
Financials		12.0
Consumer Discretionary		11.3
Information Technology		9.1
Real Estate		6.2
Materials		4.8
Energy		1.8

BHFTII-3

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse/Wellington Core Equity Opportunities Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.57	%	$	1,000.00	$	982.30	$	2.85
	Hypothetical*		0.57	%	$	1,000.00	$	1,022.33	$	2.91
Class B (a)	Actual		0.82	%	$	1,000.00	$	980.80	$	4.09
	Hypothetical*		0.82	%	$	1,000.00	$	1,021.07	$	4.18
Class E (a)	Actual		0.72	%	$	1,000.00	$	981.50	$	3.60
	Hypothetical*		0.72	%	$	1,000.00	$	1,021.58	$	3.67

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

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Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—97.4% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—7.9%
General Dynamics Corp.		529,622	$	83,261,875
Lockheed Martin Corp.		278,078		72,811,943
Northrop Grumman Corp.		270,350		66,208,715
United Technologies Corp.		495,233		52,732,410
				275,014,943
Air Freight & Logistics—2.0%
United Parcel Service, Inc. - Class B (a)		718,194		70,045,461
Banks—2.3%
PNC Financial Services Group, Inc. (The) (a)		675,793		79,006,960
Beverages—9.5%
Coca-Cola Co. (The)		2,679,102		126,855,480
Diageo plc		2,491,935		88,572,135
PepsiCo, Inc.		1,047,557		115,734,097
				331,161,712
Biotechnology—1.5%
Amgen, Inc. (a)		277,993		54,116,897
Capital Markets—1.8%
BlackRock, Inc.		160,839		63,180,776
Chemicals—4.8%
Ecolab, Inc. (a)		631,427		93,040,769
Linde plc		466,784		72,836,975
				165,877,744
Consumer Finance—2.5%
American Express Co. (a)		899,087		85,700,973
Energy Equipment & Services—0.4%
Schlumberger, Ltd.		418,406		15,096,088
Equity Real Estate Investment Trusts—6.2%
American Tower Corp. (a)		772,169		122,149,414
Public Storage (a)		470,836		95,301,915
				217,451,329
Food & Staples Retailing—2.4%
Costco Wholesale Corp.		411,752		83,878,000
Health Care Equipment & Supplies—7.8%
Baxter International, Inc. (a)		1,279,274		84,201,815
Danaher Corp.		892,409		92,025,216
Medtronic plc		1,068,073		97,151,920
				273,378,951
Health Care Providers & Services—2.5%
UnitedHealth Group, Inc.		343,939		85,682,084
Hotels, Restaurants & Leisure—4.9%
McDonald’s Corp. (a)		742,804		131,899,706

Security Description	Shares		Value
Hotels, Restaurants & Leisure—(Continued)
Starbucks Corp.		577,473	$	37,189,261
				169,088,967
Household Products—4.6%
Colgate-Palmolive Co.		1,647,064		98,033,249
Procter & Gamble Co. (The)		694,343		63,824,009
				161,857,258
Industrial Conglomerates—4.0%
3M Co.		370,671		70,627,653
Honeywell International, Inc.		528,785		69,863,074
				140,490,727
Insurance—5.5%
Chubb, Ltd.		825,711		106,665,347
Marsh & McLennan Cos., Inc.		1,050,332		83,763,977
				190,429,324
IT Services—6.1%
Accenture plc - Class A		581,561		82,005,916
Automatic Data Processing, Inc. (a)		327,149		42,895,777
Visa, Inc. - Class A		661,153		87,232,527
				212,134,220
Oil, Gas & Consumable Fuels—1.4%
Exxon Mobil Corp. (a)		692,718		47,236,440
Pharmaceuticals—4.8%
Johnson & Johnson		823,795		106,310,745
Merck & Co., Inc. (a)		789,789		60,347,777
				166,658,522
Road & Rail—5.0%
Canadian National Railway Co.		1,083,053		80,213,514
Union Pacific Corp.		673,345		93,076,479
				173,289,993
Software—3.0%
Microsoft Corp.		1,013,488		102,939,976
Specialty Retail—2.4%
TJX Cos., Inc. (The) (a)		1,837,375		82,204,158
Textiles, Apparel & Luxury Goods—4.1%
NIKE, Inc. - Class B		1,330,957		98,677,152
VF Corp. (a)		627,424		44,760,428
				143,437,580
Total Common Stocks (Cost $2,880,892,683)				3,389,359,083

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Escrow Shares—0.0%

Security Description	Shares/ Principal Amount*		Value
Forest Products & Paper—0.0%
Sino-Forest Corp. (Cost $0)		5,844,000	$	0
Short-Term Investment—2.3%
Repurchase Agreement—2.3%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $79,441,766; collateralized by U.S. Treasury Note at 2.125%, maturing 11/30/23, with a market value of $81,025,727.		79,436,470		79,436,470
Total Short-Term Investments (Cost $79,436,470)				79,436,470
Securities Lending Reinvestments (b)—7.5%
Certificates of Deposit—3.9%
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (c)		4,000,000		3,999,997
3.072%, 3M LIBOR + 0.280%, 03/20/19 (c)		6,000,000		6,002,394
China Construction Bank Corp. 2.550%, 01/07/19		2,050,000		2,050,000
Citibank N.A. 2.490%, 02/04/19		5,000,000		4,999,305
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (c)		2,000,000		2,000,006
2.642%, 1M LIBOR + 0.210%, 09/13/19 (c)		7,000,000		7,000,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (c)		2,000,000		2,000,628
Credit Agricole S.A. 2.500%, 02/12/19		9,000,000		8,998,470
Credit Industriel et Commercial Zero Coupon, 01/25/19		4,936,141		4,991,500
Credit Suisse AG 2.620%, 04/01/19		5,000,000		4,997,410
2.890%, SOFR + 0.430%, 05/02/19 (c)		4,000,000		3,999,952
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		6,000,000		5,999,556
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		3,969,950		3,995,920
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (c)		10,000,000		10,000,060
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (c)		3,000,000		3,000,018
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (c)		2,500,000		2,498,425
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (c)		8,000,000		7,999,344
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (c)		5,000,000		4,997,780
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (c)		7,000,000		6,999,797

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (c)		9,500,000	$	9,499,810
Sumitomo Mitsui Banking Corp. 2.700%, 02/25/19		4,000,000		4,000,368
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (c)		3,500,000		3,499,842
2.799%, 1M LIBOR + 0.450%, 04/03/19 (c)		5,000,000		5,002,890
2.822%, 1M LIBOR + 0.300%, 10/31/19 (c)		3,500,000		3,499,181
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (c)		1,000,000		1,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (c)		4,000,000		4,003,470
2.730%, 3M LIBOR + 0.210%, 10/25/19 (c)		4,000,000		4,000,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (c)		4,000,000		3,999,975
				135,036,098
Commercial Paper—1.9%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (c)		5,000,000		4,998,615
Banco Santander S.A. 2.500%, 01/16/19		6,955,278		6,991,572
2.740%, 02/07/19		4,964,989		4,985,440
Bank of China, Ltd. 2.690%, 01/17/19		4,966,375		4,994,130
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (c)		12,000,000		12,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (c)		12,000,000		12,001,116
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (c)		10,000,000		9,998,900
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (c)		12,000,000		12,002,940
				67,972,713
Repurchase Agreements—1.7%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $10,076,667; collateralized by various Common Stock with an aggregate market value of $11,001,834.		10,000,000		10,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $1,504,069; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $1,632,478.		1,500,000		1,500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $654,884; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $663,000.		650,000		650,000

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (b)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $6,000,505; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $6,119,427.		5,999,439	$	5,999,439
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $7,556,350; collateralized by various Common Stock with an aggregate market value of $8,250,000.		7,500,000		7,500,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $15,002,133; collateralized by various Common Stock with an aggregate market value of $16,698,184.		15,000,000		15,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $5,000,711; collateralized by various Common Stock with an aggregate market value of $5,566,061.		5,000,000		5,000,000
Nomura Securities International, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $5,000,819; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 6.500%, maturity dates ranging from 02/15/19 - 08/15/48, and an aggregate market value of $5,100,000.		5,000,000		5,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $9,501,335; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $10,407,021.		9,500,000		9,500,000
				60,149,439
Total Securities Lending Reinvestments (Cost $263,161,719)				263,158,250
Total Investments—107.2% (Cost $3,223,490,872)				3,731,953,803
Other assets and liabilities (net)—(7.2)%				(251,999,189	)
Net Assets—100.0%			$	3,479,954,614

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $260,570,335 and the collateral received consisted of cash in the amount of $262,992,171. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(b)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(c)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/ agent based on current market conditions. For certain asset- and mortgage- backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Aerospace & Defense	$	275,014,943	$	—		$	—	$	275,014,943
Air Freight & Logistics		70,045,461		—			—		70,045,461
Banks		79,006,960		—			—		79,006,960
Beverages		242,589,577		88,572,135			—		331,161,712
Biotechnology		54,116,897		—			—		54,116,897
Capital Markets		63,180,776		—			—		63,180,776
Chemicals		165,877,744		—			—		165,877,744
Consumer Finance		85,700,973		—			—		85,700,973
Energy Equipment & Services		15,096,088		—			—		15,096,088
Equity Real Estate Investment Trusts		217,451,329		—			—		217,451,329
Food & Staples Retailing		83,878,000		—			—		83,878,000
Health Care Equipment & Supplies		273,378,951		—			—		273,378,951
Health Care Providers & Services		85,682,084		—			—		85,682,084
Hotels, Restaurants & Leisure		169,088,967		—			—		169,088,967
Household Products		161,857,258		—			—		161,857,258
Industrial Conglomerates		140,490,727		—			—		140,490,727
Insurance		190,429,324		—			—		190,429,324
IT Services		212,134,220		—			—		212,134,220
Oil, Gas & Consumable Fuels		47,236,440		—			—		47,236,440
Pharmaceuticals		166,658,522		—			—		166,658,522
Road & Rail		173,289,993		—			—		173,289,993
Software		102,939,976		—			—		102,939,976
Specialty Retail		82,204,158		—			—		82,204,158
Textiles, Apparel & Luxury Goods		143,437,580		—			—		143,437,580
Total Common Stocks		3,300,786,948		88,572,135			—		3,389,359,083
Total Escrow Shares*		—		0			—		0
Total Short-Term Investment*		—		79,436,470			—		79,436,470
Total Securities Lending Reinvestments*		—		263,158,250			—		263,158,250
Total Investments	$	3,300,786,948	$	431,166,855		$	—	$	3,731,953,803
Collateral for Securities Loaned (Liability)	$	—	$	(262,992,171	)	$	—	$	(262,992,171	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	3,731,953,803
Receivable for:
Investments sold		9,979,512
Fund shares sold		71,461
Dividends and interest		5,987,218
Prepaid expenses		10,509
Total Assets		3,748,002,503
Liabilities
Collateral for securities loaned		262,992,171
Payables for:
Fund shares redeemed		2,576,317
Accrued Expenses:
Management fees		1,702,739
Distribution and service fees		217,747
Deferred trustees’ fees		189,880
Other expenses		369,035
Total Liabilities		268,047,889
Net Assets	$	3,479,954,614
Net Assets Consist of:
Paid in surplus	$	2,613,833,950
Distributable earnings (Accumulated losses)		866,120,664
Net Assets	$	3,479,954,614
Net Assets
Class A	$	2,225,565,202
Class B		601,192,186
Class E		653,197,226
Capital Shares Outstanding*
Class A		74,158,936
Class B		20,308,640
Class E		21,985,279
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	30.01
Class B		29.60
Class E		29.71

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Includes securities loaned at value of $260,570,335.
(b)	Identified cost of investments was $3,223,490,872.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	82,997,477
Interest		447,219
Securities lending income		887,597
Total investment income		84,332,293
Expenses
Management fees		27,881,280
Administration fees		134,788
Custodian and accounting fees		219,703
Distribution and service fees—Class B		1,722,127
Distribution and service fees—Class E		1,124,758
Audit and tax services		44,663
Legal		45,151
Trustees’ fees and expenses		33,733
Shareholder reporting		239,275
Insurance		25,980
Miscellaneous		40,785
Total expenses		31,512,243
Less management fee waiver		(5,807,261	)
Less broker commission recapture		(1,914	)
Net expenses		25,703,068
Net Investment Income		58,629,225
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		316,213,382
Foreign currency transactions		(2,926	)
Net realized gain		316,210,456
Net change in unrealized depreciation on:
Investments		(350,565,168	)
Foreign currency transactions		(10,524	)
Net change in unrealized depreciation		(350,575,692	)
Net realized and unrealized loss		(34,365,236	)
Net Increase in Net Assets From Operations	$	24,263,989

(a) Net of foreign withholding taxes of $443,396.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	58,629,225		$	67,661,079
Net realized gain		316,210,456			214,532,706
Net change in unrealized appreciation (depreciation)		(350,575,692	)		433,409,235
Increase in net assets from operations		24,263,989			715,603,020
From Distributions to Shareholders (a)
Class A		(181,538,032	)		(137,009,010	)
Class B		(47,981,086	)		(35,996,275	)
Class E		(52,615,965	)		(40,467,486	)
Total distributions		(282,135,083	)		(213,472,771	)
Decrease in net assets from capital share transactions		(434,590,569	)		(335,525,943	)
Total increase (decrease) in net assets		(692,461,663	)		166,604,306
Net Assets
Beginning of period		4,172,416,277			4,005,811,971
End of period	$	3,479,954,614		$	4,172,416,277	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		488,305		$	15,651,864			399,266		$	12,080,551
Reinvestments		5,837,236			181,538,032			4,585,308			137,009,010
Redemptions		(14,304,208	)		(461,190,687	)		(11,570,564	)		(353,806,274	)
Net decrease		(7,978,667	)	$	(264,000,791	)		(6,585,990	)	$	(204,716,713	)
Class B
Sales		637,417		$	20,083,779			781,128		$	23,357,931
Reinvestments		1,561,885			47,981,086			1,218,560			35,996,275
Redemptions		(4,622,811	)		(146,895,703	)		(3,745,281	)		(112,544,024	)
Net decrease		(2,423,509	)	$	(78,830,838	)		(1,745,593	)	$	(53,189,818	)
Class E
Sales		118,913		$	3,787,893			171,709		$	5,133,476
Reinvestments		1,707,202			52,615,965			1,366,222			40,467,486
Redemptions		(4,652,051	)		(148,162,798	)		(4,090,639	)		(123,220,374	)
Net decrease		(2,825,936	)	$	(91,758,940	)		(2,552,708	)	$	(77,619,412	)
Decrease derived from capital shares transactions				$	(434,590,569	)				$	(335,525,943	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(40,775,492	)	$	(96,233,518	)
Class B		(9,546,738	)		(26,449,537	)
Class E		(11,201,278	)		(29,266,208	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $67,333,496 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	32.30		$	28.61		$	28.38		$	43.13		$	42.97
Income (Loss) from Investment Operations
Net investment income (a)		0.50			0.52			0.48			0.58			0.72
Net realized and unrealized gain (loss)		(0.45	)		4.81			1.53			0.31			3.41
Total income (loss) from investment operations		0.05			5.33			2.01			0.89			4.13
Less Distributions
Distributions from net investment income		(0.58	)		(0.49	)		(0.48	)		(0.77	)		(0.31	)
Distributions from net realized capital gains		(1.76	)		(1.15	)		(1.30	)		(14.87	)		(3.66	)
Total distributions		(2.34	)		(1.64	)		(1.78	)		(15.64	)		(3.97	)
Net Asset Value, End of Period	$	30.01		$	32.30		$	28.61		$	28.38		$	43.13
Total Return (%) (b)		(0.09	)		19.07			7.34			2.40			10.63
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.72			0.72			0.72			0.72			0.73
Net ratio of expenses to average net assets (%) (c)(d)		0.57			0.57			0.58			0.58			0.59
Ratio of net investment income to average net assets (%)		1.54			1.72			1.70			1.72			1.74
Portfolio turnover rate (%)		22			13			32			25			105
Net assets, end of period (in millions)	$	2,225.6		$	2,653.5		$	2,538.2		$	2,113.5		$	2,352.1
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	31.89		$	28.26		$	28.06		$	42.79		$	42.66
Income (Loss) from Investment Operations
Net investment income (a)		0.41			0.44			0.41			0.49			0.61
Net realized and unrealized gain (loss)		(0.44	)		4.75			1.50			0.31			3.38
Total income (loss) from investment operations		(0.03	)		5.19			1.91			0.80			3.99
Less Distributions
Distributions from net investment income		(0.50	)		(0.41	)		(0.41	)		(0.66	)		(0.20	)
Distributions from net realized capital gains		(1.76	)		(1.15	)		(1.30	)		(14.87	)		(3.66	)
Total distributions		(2.26	)		(1.56	)		(1.71	)		(15.53	)		(3.86	)
Net Asset Value, End of Period	$	29.60		$	31.89		$	28.26		$	28.06		$	42.79
Total Return (%) (b)		(0.35	)		18.81			7.06			2.14			10.35
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.97			0.97			0.97			0.97			0.98
Net ratio of expenses to average net assets (%) (c)(d)		0.82			0.82			0.83			0.83			0.84
Ratio of net investment income to average net assets (%)		1.29			1.47			1.44			1.47			1.49
Portfolio turnover rate (%)		22			13			32			25			105
Net assets, end of period (in millions)	$	601.2		$	725.0		$	691.8		$	611.0		$	693.7

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	32.00		$	28.35		$	28.13		$	42.87		$	42.74
Income (Loss) from Investment Operations
Net investment income (a)		0.44			0.47			0.43			0.53			0.65
Net realized and unrealized gain (loss)		(0.44	)		4.77			1.52			0.30			3.38
Total income (loss) from investment operations		0.00			5.24			1.95			0.83			4.03
Less Distributions
Distributions from net investment income		(0.53	)		(0.44	)		(0.43	)		(0.70	)		(0.24	)
Distributions from net realized capital gains		(1.76	)		(1.15	)		(1.30	)		(14.87	)		(3.66	)
Total distributions		(2.29	)		(1.59	)		(1.73	)		(15.57	)		(3.90	)
Net Asset Value, End of Period	$	29.71		$	32.00		$	28.35		$	28.13		$	42.87
Total Return (%) (b)		(0.25	)		18.92			7.15			2.27			10.45
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.87			0.87			0.87			0.87			0.88
Net ratio of expenses to average net assets (%) (c)(d)		0.72			0.72			0.73			0.73			0.74
Ratio of net investment income to average net assets (%)		1.39			1.57			1.54			1.57			1.59
Portfolio turnover rate (%)		22			13			32			25			105
Net assets, end of period (in millions)	$	653.2		$	794.0		$	775.8		$	829.2		$	952.4

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	The effect of the voluntary portion of the waivers on the net ratio of expenses to average net assets was 0.03% for the years ended December 31, 2018 through 2014. (see Note 5 of the Notes to Financial Statements).
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse/Wellington Core Equity Opportunities Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-14

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $79,436,470. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $60,149,439. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

BHFTII-15

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	849,080,704	$	0	$	1,519,518,574

The Portfolio engaged in security transactions with other accounts managed by Wellington Management Company LLP, the subadviser to the Portfolio, that amounted to $6,674,761 in purchases and $34,697,745 in sales of investments, which are included above, and resulted in realized gains of $6,226,319.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31,  2018	% per annum			Average Daily Net Assets
$27,881,280		0.750	%	Of the first $1 billion
		0.700	%	On the next $2 billion
		0.650	%	On amounts in excess of $3 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Wellington Management Company LLP (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

BHFTII-16

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waivers - Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.120%	First $500 million
0.145%	$500 million to $1 billion
0.120%	$1 billion to $3 billion
0.080%	$3 billion to $4.5 billion
0.105%	Over $4.5 billion

An identical agreement was in place for the period May 1, 2017 through April 30, 2018. Amounts waived for the year ended December 31, 2018 amounted to $4,510,389 and are included in the total amount shown as management fee waivers in the Statement of Operations.

The Subadviser has voluntarily agreed to waive a portion of its subadvisory fees payable by the Adviser to the Subadviser for managing the Portfolio. In addition to the above advisory fee waiver, the Adviser has agreed to reduce its advisory fee reflecting a portion of the amount waived by the Subadviser for managing the Portfolio pursuant to the voluntary subadvisory fee waiver. $1,296,872 was waived in the aggregate for the year ended December 31, 2018 and is reflected in the total amount shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-17

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	3,232,837,950
Gross unrealized appreciation		563,988,521
Gross unrealized depreciation		(64,872,668	)
Net unrealized appreciation (depreciation)	$	499,115,853

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$69,899,671	$	61,523,508	$	212,235,412	$	151,949,263	$	282,135,083	$	213,472,771

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$58,337,078	$	308,854,376	$	499,119,092	$	—	$	866,310,546

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse/Wellington Core Equity Opportunities Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Wellington Core Equity Opportunities Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Wellington Core Equity Opportunities Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-21

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-22

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-23

Brighthouse Funds Trust II

Brighthouse/Wellington Core Equity Opportunities Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse/Wellington Core Equity Opportunities Portfolio.The Board also considered the following information in relation to the Agreements with the Adviser and Wellington Management Company LLP regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the Russell 1000 Index, for theone-, three-, and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions. In addition, the Board noted that theSub-Adviser did not manage the Portfolio for all of the periods referenced.

The Board also considered that the Portfolio’s actual management fees were below the Expense Universe median andSub-advised Expense Universe median, but slightly above the Expense Group median. The Board also considered that the Portfolio’s total expenses (exclusive of12b-1 fees) were equal to the Expense Group median and below the median of the Expense Universe and theSub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were slightly below the average of theSub-advised Expense Universe and above the average of theSub-advised Expense Group at the Portfolio’s current size.

BHFTII-24

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*

PERFORMANCE

For theone-year period ended December 31, 2018, the Class A and B shares of the Brighthouse Asset Allocation 20 Portfolio returned-2.41% and-2.61%, respectively. The Portfolio’s benchmark, the Dow Jones Conservative Index¹, returned-0.62%.

MARKET ENVIRONMENT/CONDITIONS

After a great 2017 withrecord-low volatility and the strongest January stock market since 1997, investors got shaken back to reality in February when equity markets took a dive following higher-than-expected wage growth. The concern was that this would lead to higher inflation followed by additional Federal Reserve (the “Fed”) interest rate hikes, leading to an unceremonious end to the second-longest economic expansion on record. However, inflation fears soon after fizzled (at least until the end of 2018) and the Fed stayed the course, despite the Tax Cuts and Jobs Act of 2017 providing a noteworthy lift to gross domestic product (“GDP”) growth. GDP growth, incidentally, is on track to reach the highest annual level since before the2008-09 recession. However, an escalating trade war between the U.S. and many of its major trading partners sent another wave of anxiety toward the market, which responded by pulling back sharply once again.

The beginning of the year turned out to be a microcosm of the remainder of 2018. This point in the economic cycle finds many market participants scrambling for indications that the expansion will end. As such, equity markets have become irrationally sensitive to individual data points, both positive and negative, with little regard to their historic predictive power on market results. The consequence was elevated market volatility in the second quarter, driven by positive economic growth and an accommodative Fed on one side, and on the other side by negative trade war and housing market news. In the third quarter, however, equity markets rebounded as corporate profits hit a newall-time high, GDP growth for second quarter came in at 4.2%, and unemployment dropped to 3.7%—the lowest number since 1969. The result in the third quarter was the best quarterly return for the S&P 500 Index since 2013.

As we got to the fourth quarter though, sentiment turned significantly worse, and the S&P 500 Index did an about-face, delivering its worst quarterly return since 2011. Gone was the sense of confidence that the strong economy could propel equity markets ever higher. Front and center were concerns about the continued trade war escalation,mid-term election uncertainty, a housing market dampened by rising interest rates and lofty prices, and a Fed that was now deemed too hawkish by projecting two additional rate hikes in 2019, despite having raised rates 4 times in 2018 (from a target range of1.25%-1.50% to a target range of2.25%-2.5%) and despite the market volatility.

News from overseas did little to attenuate concerns on the home front. Troubling to many is the ongoing Brexit (United Kingdom’s decision to withdraw from the European Union) situation, as leaders in the U.K. struggle to agree on a deal ensuring an orderly exit from the E.U.—an exit which is scheduled to occur on March 29, 2019. Highlighting the extent of disagreement are the two votes of confidence in Prime Minister Theresa May’s leadership, held in December 2018 and January 2019, both of which she won (in the U.K., a vote of confidence is a procedure used to remove a prime minister from office). Concerns about slowing growth in China have been receiving headlines as well. Leadership in China is in the middle of a long-term plan which is designed to transition the country from a manufacturing-driven economy to a service-driven economy. More worrisome to market participants is the fact that China is also in the process of dealing with an increasingly large debt burden as that plan unfolds. The outcome of both is unclear, which has led to some increased market volatility. However, it was confidence-inspiring that China had enough wherewithal to take the foot off the brake when it saw its economic growth rates declining faster than intended.

All in all, 2018 was a difficult year for investors. The economy is growing at a healthy pace, but the main question is for how long? The uncertainty caused all the major asset classes to be down for the year except for core bonds, which managed to creep in to positive territory, barely eking out a positive return with 0.01% for the year (as measured by the Bloomberg Barclays U.S. Aggregate Bond Index). International equities were generally the worst-performing asset classes with Emerging Markets equity and Foreign Developed equity down 14.6% and 13.8% respectively, as measured by the MSCI Emerging Markets Index and the MSCI EAFE Index. U.S. Large Cap equity did significantly better but was still down 4.4% for the year as measured by the S&P 500 Index, whereas Mid Cap equity lost 9.1% and Small Cap equity lost 11.0% for the year, as measured by the Russell Mid Cap and the Russell 2000 indices, in that order.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Brighthouse Asset Allocation 20 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 20% to equities and 80% to fixed income. Over the twelve-month period, the Portfolio fell short of the Dow Jones Conservative Index. Strong performance within the Mid and Small Cap portfolios and a favorable overweight to Large Cap equity was insufficient to attenuate the combination of underperformance within Large Cap and International equities, an underweight to cash, and an overweight to overall equity—all detractors.

The contribution from the underlying fixed income portfolios to relative performance was slightly negative in 2018. The biggest contributor to performance by far was the Brighthouse/Templeton International Bond Portfolio, which outpaced its benchmark by 3.1%. The strategy’s relative outperformance during the period was primarily attributable to currency positions, notably, the portfolio’s underweights in the euro and the Australian dollar. Outside of currency exposure, short duration positioning in the U.S. helped returns as well. The Brighthouse/Eaton Vance Floating Rate Portfolio

BHFTII-1

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*—(Continued)

outperformed its benchmark by 0.1%. The portfolio’s underweight to defaulted loans aided performance relative to its benchmark over the year, as did favorable security selection in Financial Services and Energy. At the other end of the spectrum was the Western Asset Management Strategic Bond Opportunities Portfolio, which lagged its benchmark by 3.8%. Portfolio performance was negatively impacted by its U.S. duration and yield curve positioning, as well as currency and emerging markets positions. During the year, corporate credit spreads widened and experienced heightened levels of volatility. As such, the portfolio’s investment grade corporate credit positions were also negative contributors to performance. Also detracting in fixed income was the Brighthouse/Franklin Low Duration Total Return Portfolio, which underperformed its benchmark by 0.9%, largely driven by Collateralized Loan Obligation positions.

Contribution from the underlying domestic equity portfolios to relative performance was negative, as strong performance by the Mid Cap and Small Cap equity portfolios was insufficient to make up for the underperformance within the Large Cap equity portfolios. Within Large Cap, the Brighthouse/Wellington Core Equity Opportunities Portfolio had a strong year, as it outperformed its benchmark by 4.7%. Strong security selection within Consumer Discretionary, Consumer Staples, and Materials sectors helped. Meanwhile, the Brighthouse/Wellington Large Cap Research Portfolio underperformed its benchmark by 1.8%, driven by suboptimal security selection within Health Care, Consumer Staples, and Energy. Another laggard for the period was the Invesco Comstock Portfolio, which underperformed its benchmark by 3.7% for the year. The result was primarily due to an overweight to Energy and unfavorable security selection within Financial Services, Healthcare, and Energy. Within Mid Cap equity, only the T. Rowe Price Mid Cap Growth Portfolio outperformed its benchmark. The portfolio outpaced its benchmark by 2.7% as positive results were driven by security selection within Communication Services, Financial Services, and Materials. The strongest performer within Small Cap equity was the Neuberger Berman Genesis Portfolio, which outperformed its benchmark by 6.2% in 2018 as the portfolio’s focus on higher-quality companies with higher return on equity paid off. Security selection in Healthcare, Consumer Staples, and Information Technology made the largest positive impact on relative results. The T. Rowe Price Small Cap Growth Portfolio beat its benchmark by 2.6% over the year, primarily due to beneficial security selection within Industrials, Materials, Consumer Discretionary, and Healthcare.

Non-U.S. equity was a headwind to relative performance in 2018. Most notably, the Harris Oakmark International Portfolio underperformed its benchmark by 9.9% during the year as security selection and country weightings caused returns to suffer. Performance compared to the benchmark was hurt by holdings in the U.K., Germany, and France as well as suboptimal security selection in Consumer Discretionary, Financial Services, and Industrials. The best performance in the category came from the Brighthouse/Artisan International Portfolio, which outperformed its benchmark by 3.5% in 2018. Much of the outperformance was a result of strong security selection within Technology, Materials, and Consumer Discretionary. In addition, the Brighthouse/Aberdeen Emerging Market Equity Portfolio was additive to relative results during the year, outperforming its benchmark by 0.7% as an underweight to China and positive security selection in Consumer Discretionary, Financial Services, and Technology supported returns.

Investment Committee

Brighthouse Investment Advisers, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

A $10,000 INVESTMENT COMPARED TO THE DOW JONES CONSERVATIVE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse Asset Allocation 20 Portfolio
Class A		-2.41		2.74		6.09
Class B		-2.61		2.49		5.83
Dow Jones Conservative Index		-0.62		2.24		4.22

¹ The Dow Jones Conservative Index is a total return index designed to provide asset allocation strategists with a target risk benchmark. Each month, the Index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) such that the risk combination will have 20% of the risk of an all equity portfolio.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Western Asset Management U.S. Government Portfolio (Class A)		13.2
BlackRock Bond Income Portfolio (Class A)		12.7
PIMCO Total Return Portfolio (Class A)		12.2
TCW Core Fixed Income Portfolio (Class A)		9.7
PIMCO Inflation Protected Bond Portfolio (Class A)		9.1
JPMorgan Core Bond Portfolio (Class A)		8.7
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		5.0
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		5.0
Brighthouse/Templeton International Bond Portfolio (Class A)		2.5
MFS Value Portfolio (Class A)		2.1

Asset Allocation

	% of Net Assets
Investment Grade Fixed Income		70.7
U.S. Large Cap Equities		10.1
High Yield Fixed Income		7.5
International Developed Market Equities		4.5
International Fixed Income		2.5
U.S. Small Cap Equities		2.2
Global Equities		1.4
Real Estate Equities		0.5
U.S. Mid Cap Equities		0.4
Emerging Market Equities		0.3

BHFTII-3

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse Asset Allocation 20 Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a) (b)	Actual		0.62	%	$	1,000.00	$	982.00	$	3.10
	Hypothetical*		0.62	%	$	1,000.00	$	1,022.08	$	3.16
Class B (a) (b)	Actual		0.87	%	$	1,000.00	$	981.80	$	4.35
	Hypothetical*		0.87	%	$	1,000.00	$	1,020.82	$	4.43

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects an expense limitation agreement between Brighthouse Investment Advisers, LLC and the Portfolio as described in Note 5 of the Notes to Financial Statements.

(b) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

BHFTII-4

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Schedule of Investments as of December 31, 2018

Mutual Funds—100.1% of Net Assets

Security Description	Shares		Value
Affiliated Investment Companies—100.1%
Baillie Gifford International Stock Portfolio (Class A) (a)		707,265	$	7,794,061
BlackRock Bond Income Portfolio (Class A) (a)		668,274		68,792,124
BlackRock Capital Appreciation Portfolio (Class A) (a)		99,389		3,859,282
BlackRock High Yield Portfolio (Class A) (b)		368,308		2,670,236
Brighthouse Small Cap Value Portfolio (Class A) (b)		186,871		2,530,236
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A) (b)		140,632		1,341,626
Brighthouse/Artisan International Portfolio (Class A) (b)		529,351		5,240,577
Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (a)		5,995		1,269,972
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (b)		1,064,498		10,644,984
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) (b)		2,880,341		27,334,441
Brighthouse/Templeton International Bond Portfolio (Class A) (b) (c)		1,334,332		13,623,528
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (a)		301,493		9,047,815
Brighthouse/Wellington Large Cap Research Portfolio (Class A) (b)		388,062		5,118,534
Clarion Global Real Estate Portfolio (Class A) (b)		244,089		2,616,631
Harris Oakmark International Portfolio (Class A) (b)		639,993		7,782,316
Invesco Comstock Portfolio (Class A) (b)		763,391		10,122,560
Jennison Growth Portfolio (Class A) (a)		266,728		3,867,555
JPMorgan Core Bond Portfolio (Class A) (b)		4,674,952		46,843,016
JPMorgan Small Cap Value Portfolio (Class A) (b)		177,025		2,506,672
MFS Research International Portfolio (Class A) (b)		364,030		3,927,887
MFS Value Portfolio (Class A) (a)		828,856		11,446,498
Neuberger Berman Genesis Portfolio (Class A) (a)		136,478		2,533,029
Oppenheimer Global Equity Portfolio (Class A) (b)		63,204		1,292,524
Affiliated Investment Companies—(Continued)
PIMCO Inflation Protected Bond Portfolio (Class A) (b)		5,154,378		49,327,398
PIMCO Total Return Portfolio (Class A) (b)		5,796,439		66,021,441
T. Rowe Price Large Cap Growth Portfolio (Class A) (a)		186,185		3,855,885
T. Rowe Price Large Cap Value Portfolio (Class A) (b)		266,925		7,644,734
T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)		126,225		1,286,232
T. Rowe Price Small Cap Growth Portfolio (Class A) (a)		178,578		3,791,221
TCW Core Fixed Income Portfolio (Class A) (b)		5,246,750		52,362,562
Van Eck Global Natural Resources Portfolio (Class A) (a)		819,515		6,293,879
Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)		2,152,848		27,298,107
Western Asset Management U.S. Government Portfolio (Class A) (a)		6,224,310		71,517,321
Total Mutual Funds (Cost $569,482,036)				541,604,884
Total Investments—100.1% (Cost $569,482,036)				541,604,884
Other assets and liabilities (net)—(0.1)%				(319,614	)
Net Assets—100.0%			$	541,285,270

(a)	A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b)	A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c)	Non-income producing security.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Mutual Funds
Affiliated Investment Companies	$	541,604,884	$	—	$	—	$	541,604,884
Total Investments	$	541,604,884	$	—	$	—	$	541,604,884

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Affiliated investments at value (a)	$	541,604,884
Receivable for:
Affiliated investments sold		121,742
Fund shares sold		2,604
Due from investment adviser		4,549
Total Assets		541,733,779
Liabilities
Payables for:
Fund shares redeemed		124,346
Accrued Expenses:
Management fees		45,166
Distribution and service fees		108,018
Deferred trustees’ fees		111,916
Other expenses		59,063
Total Liabilities		448,509
Net Assets	$	541,285,270
Net Assets Consist of:
Paid in surplus	$	554,727,420
Distributable earnings (Accumulated losses)		(13,442,150	)
Net Assets	$	541,285,270
Net Assets
Class A	$	33,602,207
Class B		507,683,063
Capital Shares Outstanding*
Class A		3,246,143
Class B		49,452,448
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	10.35
Class B		10.27

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of affiliated investments was $569,482,036.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends from affiliated investments	$	13,673,373
Total investment income		13,673,373
Expenses
Management fees		562,116
Administration fees		26,349
Custodian and accounting fees		28,054
Distribution and service fees—Class B		1,365,677
Audit and tax services		32,222
Legal		45,317
Trustees’ fees and expenses		33,734
Miscellaneous		8,854
Total expenses		2,102,323
Less expenses reimbursed by the Adviser		(153,825	)
Net expenses		1,948,498
Net Investment Income		11,724,875
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Affiliated investments		2,425,237
Capital gain distributions from affiliated investments		7,799,655
Net realized gain		10,224,892
Net change in unrealized depreciation on affiliated investments		(36,944,994	)
Net realized and unrealized loss		(26,720,102	)
Net Decrease in Net Assets From Operations	$	(14,995,227	)

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	11,724,875		$	12,124,716
Net realized gain		10,224,892			6,825,212
Net change in unrealized appreciation (depreciation)		(36,944,994	)		24,219,748
Increase (decrease) in net assets from operations		(14,995,227	)		43,169,676
From Distributions to Shareholders (a)
Class A		(1,362,443	)		(1,598,526	)
Class B		(18,915,897	)		(22,047,887	)
Total distributions		(20,278,340	)		(23,646,413	)
Decrease in net assets from capital share transactions		(51,852,688	)		(56,585,690	)
Total decrease in net assets		(87,126,255	)		(37,062,427	)
Net Assets
Beginning of period		628,411,525			665,473,952
End of period	$	541,285,270		$	628,411,525	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		296,749		$	3,178,060			399,659		$	4,354,795
Reinvestments		129,141			1,362,443			149,535			1,598,526
Redemptions		(766,471	)		(8,214,828	)		(819,017	)		(8,927,209	)
Net decrease		(340,581	)	$	(3,674,325	)		(269,823	)	$	(2,973,888	)
Class B
Sales		6,089,194		$	64,558,745			5,752,405		$	62,167,159
Reinvestments		1,806,676			18,915,897			2,078,029			22,047,887
Redemptions		(12,378,058	)		(131,653,005	)		(12,761,341	)		(137,826,848	)
Net decrease		(4,482,188	)	$	(48,178,363	)		(4,930,907	)	$	(53,611,802	)
Decrease derived from capital shares transactions				$	(51,852,688	)				$	(56,585,690	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(947,275	)	$	(651,251	)
Class B		(12,419,033	)		(9,628,854	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $12,526,450 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	11.01		$	10.69		$	10.94		$	11.59		$	12.05
Income (Loss) from Investment Operations
Net investment income (a)		0.24			0.23			0.23			0.36			0.25
Net realized and unrealized gain (loss)		(0.50	)		0.53			0.28			(0.38	)		0.29
Total income (loss) from investment operations		(0.26	)		0.76			0.51			(0.02	)		0.54
Less Distributions
Distributions from net investment income		(0.26	)		(0.26	)		(0.39	)		(0.27	)		(0.50	)
Distributions from net realized capital gains		(0.14	)		(0.18	)		(0.37	)		(0.36	)		(0.50	)
Total distributions		(0.40	)		(0.44	)		(0.76	)		(0.63	)		(1.00	)
Net Asset Value, End of Period	$	10.35		$	11.01		$	10.69		$	10.94		$	11.59
Total Return (%) (b)		(2.41	)		7.16			4.76			(0.23	)		4.73
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%) (c)		0.13			0.12			0.12			0.11			0.12
Net ratio of expenses to average net assets (%) (c)(d)		0.10			0.10			0.10			0.10			0.10
Ratio of net investment income to average net assets (%) (e)		2.26			2.13			2.15			3.20			2.17
Portfolio turnover rate (%)		11			11			14			21			16
Net assets, end of period (in millions)	$	33.6		$	39.5		$	41.2		$	47.5		$	50.1
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.92		$	10.60		$	10.85		$	11.51		$	11.97
Income (Loss) from Investment Operations
Net investment income (a)		0.21			0.20			0.20			0.33			0.22
Net realized and unrealized gain (loss)		(0.49	)		0.53			0.28			(0.39	)		0.28
Total income (loss) from investment operations		(0.28	)		0.73			0.48			(0.06	)		0.50
Less Distributions
Distributions from net investment income		(0.23	)		(0.23	)		(0.36	)		(0.24	)		(0.46	)
Distributions from net realized capital gains		(0.14	)		(0.18	)		(0.37	)		(0.36	)		(0.50	)
Total distributions		(0.37	)		(0.41	)		(0.73	)		(0.60	)		(0.96	)
Net Asset Value, End of Period	$	10.27		$	10.92		$	10.60		$	10.85		$	11.51
Total Return (%) (b)		(2.61	)		6.93			4.53			(0.59	)		4.47
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%) (c)		0.38			0.37			0.37			0.36			0.37
Net ratio of expenses to average net assets (%) (c)(d)		0.35			0.35			0.35			0.35			0.35
Ratio of net investment income to average net assets (%) (e)		2.00			1.86			1.83			2.89			1.89
Portfolio turnover rate (%)		11			11			14			21			16
Net assets, end of period (in millions)	$	507.7		$	588.9		$	624.2		$	615.4		$	653.6

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.
(d)	Includes the effects of expenses reimbursed by the Adviser (see Note 5 of the Notes to Financial Statements).
(e)	Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 20 Portfolio (the “Asset Allocation Portfolio”), which is diversified. The Asset Allocation Portfolio operates under a “fund of funds” structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an “Underlying Portfolio,” and, collectively, the “Underlying Portfolios”). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Asset Allocation Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Asset Allocation Portfolio represent an equal pro rata interest in the Asset Allocation Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Asset Allocation Portfolio, and certain Asset Allocation Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Asset Allocation Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Asset Allocation Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Asset Allocation Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Asset Allocation Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Asset Allocation Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Asset Allocation Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Asset Allocation Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

Dividends and Distributions to Shareholders -The Asset Allocation Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Asset Allocation Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable

BHFTII-9

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Asset Allocation Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Asset Allocation Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

3. Certain Risks

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

The Asset Allocation Portfolio’s prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$ 0	$	63,528,017	$	0	$	116,136,921

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Asset Allocation Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Asset Allocation Portfolio. For providing investment management services to the Asset Allocation Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$562,116		0.100	%	Of the first $500 million
		0.075	%	Of the next $500 million
		0.050	%	On amounts in excess of $1 billion

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers however, such officers and trustees receive no compensation from the Trust.

Expense Limitation Agreement - Pursuant to an expense agreement relating to each class of the Asset Allocation Portfolio, Brighthouse Investment Advisers has contractually agreed, from April 30, 2018 to April 30, 2019, to waive a portion of its advisory fees or pay a portion of the other operating expenses (not including acquired fund fees and expenses, brokerage costs, interest, taxes, or extraordinary expenses) to the extent total operating expenses exceed stated annual expense limits (based on the Asset Allocation Portfolio’s then-current fiscal year). For the Asset Allocation Portfolio, this subsidy, and identical subsidies in effect in earlier periods, are subject to the obligation of each class of the Asset Allocation Portfolio to repay Brighthouse Investment Advisers in future years, if any, when a class’ expenses fall below the stated expense limit pertaining to that class that was in effect at the time of the subsidy in question. Such deferred expenses may be charged to a class in a subsequent year to the extent that the charge does not cause the total expenses in such subsequent year to exceed the class’ stated expense limit that was in effect at the time of the subsidy in question; provided, however, that no class of the Asset Allocation Portfolio is obligated to repay any expense paid by Brighthouse Investment Advisers more than five years after the end of the fiscal year in which such expense was incurred. The expense limits (annual rates as a percentage of each class of the Asset Allocation Portfolio’s net average daily net assets) in effect from April 30, 2018 to April 30, 2019 are 0.10% and 0.35% for Class A and B, respectively.

As of December 31, 2018, the amount of expenses deferred in 2014 subject to repayment until December 31, 2019 was $111,213. The amount of expenses deferred in 2015 subject to repayment until December 31, 2020 was $99,092. The amount of expenses deferred in 2016 subject to repayment until December 31, 2021 was $120,106. The amount of expenses deferred in 2017 subject to repayment until December 31, 2022 was $143,509. The amount of expenses deferred in 2018 subject to repayment until December 31, 2023 was $153,825.

Transfer Agency Agreement - Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2018 were as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	6,313,986	$	4,539,978	$	(1,496,091	)	$	342,728		$	(1,906,540	)	$	7,794,061
BlackRock Bond Income Portfolio (Class A)		78,650,584		3,615,909		(10,589,492	)		(639,714	)		(2,245,163	)		68,792,124
BlackRock Capital Appreciation Portfolio (Class A)		6,263,239		1,437,242		(3,682,491	)		856,841			(1,015,549	)		3,859,282

BHFTII-11

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
BlackRock High Yield Portfolio (Class A)	$	3,145,741	$	216,806	$	(475,476	)	$	(37,115	)	$	(179,720	)	$	2,670,236
Brighthouse Small Cap Value Portfolio (Class A)		3,125,660		707,211		(712,099	)		142,046			(732,582	)		2,530,236
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		1,584,367		395,805		(397,880	)		48,911			(289,577	)		1,341,626
Brighthouse/Artisan International Portfolio (Class A)		3,150,093		3,711,486		(891,997	)		173,281			(902,286	)		5,240,577
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		1,563,770		308,005		(340,502	)		52,823			(314,124	)		1,269,972
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		12,570,129		659,853		(2,238,286	)		101,010			(447,722	)		10,644,984
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		31,425,249		1,037,629		(4,727,013	)		(230,004	)		(171,420	)		27,334,441
Brighthouse/Templeton International Bond Portfolio (Class A)		15,497,679		553,625		(2,631,221	)		(265,894	)		469,339			13,623,528
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		12,549,930		1,952,559		(4,854,758	)		218,128			(818,044	)		9,047,815
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		6,261,927		1,614,748		(1,790,571	)		269,702			(1,237,272	)		5,118,534
Clarion Global Real Estate Portfolio (Class A)		3,156,676		496,576		(618,470	)		(9,609	)		(408,542	)		2,616,631
Harris Oakmark International Portfolio (Class A)		7,874,391		4,337,741		(1,787,001	)		477,088			(3,119,903	)		7,782,316
Invesco Comstock Portfolio (Class A)		15,655,828		3,099,012		(6,484,056	)		1,146,446			(3,294,670	)		10,122,560
Jennison Growth Portfolio (Class A)		6,250,492		1,632,111		(3,693,304	)		832,570			(1,154,314	)		3,867,555
JPMorgan Core Bond Portfolio (Class A)		53,452,067		2,296,124		(7,438,480	)		(508,821	)		(957,874	)		46,843,016
JPMorgan Small Cap Value Portfolio (Class A)		3,122,384		723,885		(787,107	)		90,040			(642,530	)		2,506,672
MFS Research International Portfolio (Class A)		4,730,848		835,285		(962,393	)		91,662			(767,515	)		3,927,887
MFS Value Portfolio (Class A)		14,126,846		2,856,644		(4,800,708	)		(28,438	)		(707,846	)		11,446,498
MFS Value Portfolio II (Class A)		1,569,487		534,039		(146,635	)		27,451			(1,984,342	)		—
Neuberger Berman Genesis Portfolio (Class A)		3,135,419		830,507		(939,917	)		225,392			(718,372	)		2,533,029
Oppenheimer Global Equity Portfolio (Class A)		1,566,573		450,428		(407,130	)		106,570			(423,917	)		1,292,524
PIMCO Inflation Protected Bond Portfolio (Class A)		56,790,731		1,902,213		(7,252,052	)		(1,027,283	)		(1,086,211	)		49,327,398
PIMCO Total Return Portfolio (Class A)		75,557,422		2,124,924		(10,437,386	)		(651,008	)		(572,511	)		66,021,441
T. Rowe Price Large Cap Growth Portfolio (Class A)		6,250,221		1,602,519		(3,413,302	)		662,695			(1,246,248	)		3,855,885
T. Rowe Price Large Cap Value Portfolio (Class A)		12,533,461		2,296,564		(5,453,728	)		204,585			(1,936,148	)		7,644,734
T. Rowe Price Mid Cap Growth Portfolio (Class A)		1,565,947		370,846		(461,820	)		22,592			(211,333	)		1,286,232
T. Rowe Price Small Cap Growth Portfolio (Class A)		3,135,170		2,400,068		(1,151,656	)		98,916			(691,277	)		3,791,221
TCW Core Fixed Income Portfolio (Class A)		59,787,160		2,297,222		(8,286,286	)		(79,265	)		(1,356,269	)		52,362,562
Van Eck Global Natural Resources Portfolio (Class A)		3,148,730		6,758,106		(1,328,991	)		39,252			(2,323,218	)		6,293,879
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		31,459,301		2,105,368		(3,563,526	)		102,923			(2,805,959	)		27,298,107
Western Asset Management U.S. Government Portfolio (Class A)		81,762,037		2,826,979		(11,895,096	)		(431,264	)		(745,335	)		71,517,321
	$	628,733,545	$	63,528,017	$	(116,136,921	)	$	2,425,237		$	(36,944,994	)	$	541,604,884

Security Description	Capital Gain Distributions from Affiliated Investments		Income earned from affiliates during the period		Number of shares held at December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	—	$	98,535		707,265
BlackRock Bond Income Portfolio (Class A)		—		2,495,903		668,274
BlackRock Capital Appreciation Portfolio (Class A)		559,183		5,276		99,389
BlackRock High Yield Portfolio (Class A)		—		150,605		368,308
Brighthouse Small Cap Value Portfolio (Class A)		152,055		36,394		186,871
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		—		40,863		140,632
Brighthouse/Artisan International Portfolio (Class A)		—		84,542		529,351
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		76,278		9,033		5,995
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		—		452,703		1,064,498
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		—		601,771		2,880,341
Brighthouse/Templeton International Bond Portfolio (Class A)		—		—		1,334,332
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		545,272		179,695		301,493
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		665,567		59,996		388,062
Clarion Global Real Estate Portfolio (Class A)		—		178,065		244,089
Harris Oakmark International Portfolio (Class A)		332,523		158,271		639,993
Invesco Comstock Portfolio (Class A)		856,910		101,061		763,391
Jennison Growth Portfolio (Class A)		620,026		14,621		266,728
JPMorgan Core Bond Portfolio (Class A)		—		1,499,742		4,674,952
JPMorgan Small Cap Value Portfolio (Class A)		161,677		36,915		177,025
MFS Research International Portfolio (Class A)		—		94,767		364,030
MFS Value Portfolio (Class A)		824,241		196,287		828,856
MFS Value Portfolio II (Class A)		398,148		47,887		—

BHFTII-12

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Security Description	Capital Gain Distributions from Affiliated Investments		Income earned from affiliates during the period		Number of shares held at December 31, 2018
Neuberger Berman Genesis Portfolio (Class A)	$	351,513	$	10,075		136,478
Oppenheimer Global Equity Portfolio (Class A)		132,943		17,603		63,204
PIMCO Inflation Protected Bond Portfolio (Class A)		—		971,032		5,154,378
PIMCO Total Return Portfolio (Class A)		—		1,123,251		5,796,439
T. Rowe Price Large Cap Growth Portfolio (Class A)		760,725		17,848		186,185
T. Rowe Price Large Cap Value Portfolio (Class A)		824,038		176,757		266,925
T. Rowe Price Mid Cap Growth Portfolio (Class A)		189,101		—		126,225
T. Rowe Price Small Cap Growth Portfolio (Class A)		349,455		5,081		178,578
TCW Core Fixed Income Portfolio (Class A)		—		1,443,176		5,246,750
Van Eck Global Natural Resources Portfolio (Class A)		—		11,804		819,515
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		—		1,574,312		2,152,848
Western Asset Management U.S. Government Portfolio (Class A)		—		1,779,502		6,224,310
	$	7,799,655	$	13,673,373

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	577,308,451
Gross unrealized appreciation		787,556
Gross unrealized depreciation		(36,491,124	)
Net unrealized appreciation (depreciation)	$	(35,703,568	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$12,901,925	$	13,366,308	$	7,376,415	$	10,280,105	$	20,278,340	$	23,646,413

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$12,048,267	$	10,325,067	$	(35,703,568	)	$	—	$	(13,330,234	)

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Asset Allocation Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

BHFTII-13

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-14

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse Asset Allocation 20 Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 20 Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 20 Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-15

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-16

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-17

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Board of Trustees’ Consideration of Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with Brighthouse Investment Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser, and aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Agreement, each of which was prepared by the Adviser specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the “Asset Allocation Portfolios”) and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the “American Funds of Funds”). The Board considered the Adviser’s services as investment manager to the Portfolios, including its trading practices and oversight of transition management (as applicable), compliance program and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-19

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Agreement on aPortfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Portfolios, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

BHFTII-20

Brighthouse Funds Trust II

Brighthouse Asset Allocation 20 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse Asset Allocation 20 Portfolio.The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe for theone-year and three-year periods ended June 30, 2018, and performed equally to the median of its Performance Universe for the five-year period ended June 30, 2018. The Board also considered that the Portfolio underperformed the average of its Morningstar category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed the Brighthouse AA 20 Narrow Index for theone-, three- and five-year periods ended September 30, 2018. The Board also took into account that the Portfolio outperformed the Dow Jones Conservative Index for the three-year and five-year periods ended September 30, 2018, and underperformed for theone-year period ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board considered that the Portfolio’s actual management fees were equal to the Expense Group median and the Expense Universe median. The Board considered that the Portfolio’s total expenses (exclusive of12b-l fees) were above the Expense Group median and the Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds at the Portfolio’s current size.

BHFTII-21

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*

PERFORMANCE

For theone-year period ended December 31, 2018, the Class A and B shares of the Brighthouse Asset Allocation 40 Portfolio returned-4.25% and-4.40%, respectively. The Portfolio’s benchmark, the Dow Jones Moderately Conservative Index¹, returned-3.15%.

MARKET ENVIRONMENT/CONDITIONS

After a great 2017 withrecord-low volatility and the strongest January stock market since 1997, investors got shaken back to reality in February when equity markets took a dive following higher-than-expected wage growth. The concern was that this would lead to higher inflation followed by additional Federal Reserve (the “Fed”) interest rate hikes, leading to an unceremonious end to the second-longest economic expansion on record. However, inflation fears soon after fizzled (at least until the end of 2018) and the Fed stayed the course, despite the Tax Cuts and Jobs Act of 2017 providing a noteworthy lift to gross domestic product (“GDP”) growth. GDP growth, incidentally, is on track to reach the highest annual level since before the2008-09 recession. However, an escalating trade war between the U.S. and many of its major trading partners sent another wave of anxiety toward the market, which responded by pulling back sharply once again.

The beginning of the year turned out to be a microcosm of the remainder of 2018. This point in the economic cycle finds many market participants scrambling for indications that the expansion will end. As such, equity markets have become irrationally sensitive to individual data points, both positive and negative, with little regard to their historic predictive power on market results. The consequence was elevated market volatility in the second quarter, driven by positive economic growth and an accommodative Fed on one side, and on the other side by negative trade war and housing market news. In the third quarter, however, equity markets rebounded as corporate profits hit a newall-time high, GDP growth for second quarter came in at 4.2%, and unemployment dropped to 3.7%—the lowest number since 1969. The result in the third quarter was the best quarterly return for the S&P 500 Index since 2013.

As we got to the fourth quarter though, sentiment turned significantly worse, and the S&P 500 Index did an about-face, delivering its worst quarterly return since 2011. Gone was the sense of confidence that the strong economy could propel equity markets ever higher. Front and center were concerns about the continued trade war escalation,mid-term election uncertainty, a housing market dampened by rising interest rates and lofty prices, and a Fed that was now deemed too hawkish by projecting two additional rate hikes in 2019, despite having raised rates 4 times in 2018 (from a target range of1.25%-1.50% to a target range of2.25%-2.5%) and despite the market volatility.

News from overseas did little to attenuate concerns on the home front. Troubling to many is the ongoing Brexit (United Kingdom’s decision to withdraw from the European Union) situation, as leaders in the U.K. struggle to agree on a deal ensuring an orderly exit from the E.U.—an exit which is scheduled to occur on March 29, 2019. Highlighting the extent of disagreement are the two votes of confidence in Prime Minister Theresa May’s leadership, held in December 2018 and January 2019, both of which she won (in the U.K., a vote of confidence is a procedure used to remove a prime minister from office). Concerns about slowing growth in China have been receiving headlines as well. Leadership in China is in the middle of a long-term plan which is designed to transition the country from a manufacturing-driven economy to a service-driven economy. More worrisome to market participants is the fact that China is also in the process of dealing with an increasingly large debt burden as that plan unfolds. The outcome of both is unclear, which has led to some increased market volatility. However, it was confidence-inspiring that China had enough wherewithal to take the foot off the brake when it saw its economic growth rates declining faster than intended.

All in all, 2018 was a difficult year for investors. The economy is growing at a healthy pace, but the main question is for how long? The uncertainty caused all the major asset classes to be down for the year except for core bonds, which managed to creep in to positive territory, barely eking out a positive return with 0.01% for the year (as measured by the Bloomberg Barclays U.S. Aggregate Bond Index). International equities were generally the worst-performing asset classes with Emerging Markets equity and Foreign Developed equity down 14.6% and 13.8% respectively, as measured by the MSCI Emerging Markets Index and the MSCI EAFE Index. U.S. Large Cap equity did significantly better but was still down 4.4% for the year as measured by the S&P 500 Index, whereas Mid Cap equity lost 9.1% and Small Cap equity lost 11.0% for the year, as measured by the Russell Mid Cap and the Russell 2000 indices, in that order.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Brighthouse Asset Allocation 40 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 40% to equities and 60% to fixed income. Over the twelve-month period, the Portfolio lagged the Dow Jones Moderately Conservative Index. Strong performance within the Mid and Small Cap portfolios and a favorable overweight to Large Cap equity was insufficient to attenuate the combination of underperformance within Large Cap and International equities, an underweight to cash, and an overweight to equities in general—all detractors.

The contribution from the underlying fixed income portfolios to relative performance was slightly negative in 2018. The biggest contributor by far to performance was the Brighthouse/Templeton International Bond Portfolio, which outpaced its benchmark by 3.1%. The strategy’s relative outperformance during the period was primarily attributable to currency positions, notably, the portfolio’s underweight positions in the euro and the Australian dollar. Outside of currency exposure, short duration positioning in the U.S. helped returns as well. The Brighthouse/Eaton Vance Floating Rate

BHFTII-1

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*—(Continued)

Portfolio outperformed its benchmark by 0.1%. The portfolio’s underweight to defaulted loans aided performance relative to its benchmark over the year, as did favorable security selection in Financial Services and Energy. At the other end of the spectrum was the Western Asset Management Strategic Bond Opportunities Portfolio, which lagged its benchmark by 3.8%. Portfolio performance was negatively impacted by its U.S. duration and yield curve positioning, as well as currency and emerging markets positions. During the year, corporate credit spreads widened and experienced heightened levels of volatility. As such, the portfolio’s investment grade corporate credit positions were also negative contributors to performance. Also detracting in fixed income was the Brighthouse/Franklin Low Duration Total Return Portfolio, which underperformed its benchmark by 0.9%, largely driven by Collateralized Loan Obligation positions.

Contribution from the underlying domestic equity portfolios to relative performance was negative, as strong performance by the Mid Cap and Small Cap equity portfolios was insufficient to make up for the underperformance within the Large Cap equity portfolios. Within Large Cap, the Brighthouse/Wellington Core Equity Opportunities Portfolio had a strong year, as it outperformed its benchmark by 4.7%. Strong security selection within Consumer Discretionary, Consumer Staples, and Materials sectors helped. The ClearBridge Aggressive Growth Portfolio, on the other hand, experienced considerable underperformance in 2018, falling shy of its benchmark by 4.7% for the period. The underperformance was driven by an unfavorable overweight to Energy, in addition to suboptimal security selection within Information Technology, Consumer Discretionary, and Industrials. Another laggard for the period was the Invesco Comstock Portfolio, which underperformed its benchmark by 3.7% for the year. The result was primarily due to an overweight to Energy and unfavorable security selection within Financial Services, Healthcare, and Energy. Within Mid Cap equity, only the T. Rowe Price Mid Cap Growth Portfolio outperformed its benchmark. The portfolio outpaced its benchmark by 2.7% as positive results were driven by security selection within Communication Services, Financial Services, and Materials. Within Small Cap equity, most of the managers outperformed their respective benchmarks. The strongest performer within the Small Cap equity space was the Neuberger Berman Genesis Portfolio, which outperformed its benchmark by 6.2% in 2018 as the Portfolio’s focus on higher-quality companies with higher return on equity paid off. Security selection in Healthcare, Consumer Staples, and Information Technology made the largest positive impact on relative results. The T. Rowe Price Small Cap Growth Portfolio beat its benchmark by 2.6% over the year, primarily due to beneficial security selection within Industrials, Materials, Consumer Discretionary, and Healthcare.

Non-U.S. equity was a headwind to relative performance in 2018. Most notably, the Harris Oakmark International Portfolio underperformed its benchmark by 9.9% during the year as security selection and country weightings caused returns to suffer. Performance compared to the benchmark was hurt by holdings in the U.K., Germany, and France as well as suboptimal security selection in Consumer Discretionary, Financial Services, and Industrials. The best performance in the category came from the Brighthouse/Artisan International Portfolio, which outperformed its benchmark by 3.5% in 2018. Much of the outperformance was a result of strong security selection within Technology, Materials, and Consumer Discretionary. In addition, the Brighthouse/Aberdeen Emerging Market Equity Portfolio was additive to relative results during the year, outperforming its benchmark by 0.7% as an underweight to China and positive security selection in Consumer Discretionary, Financial Services, and Technology supported returns.

Investment Committee

Brighthouse Investment Advisers, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY CONSERVATIVE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse Asset Allocation 40 Portfolio
Class A		-4.25		3.35		7.48
Class B		-4.40		3.10		7.22
Dow Jones Moderately Conservative Index		-3.15		3.30		6.33

¹ The Dow Jones Moderately Conservative Index is a total return index designed to provide asset allocation strategists with a target risk benchmark. Each month, the Index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) such that the risk combination will have 40% of the risk of an all equity portfolio.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
BlackRock Bond Income Portfolio (Class A)		10.0
PIMCO Total Return Portfolio (Class A)		9.5
Western Asset Management U.S. Government Portfolio (Class A)		8.4
TCW Core Fixed Income Portfolio (Class A)		7.9
JPMorgan Core Bond Portfolio (Class A)		6.9
PIMCO Inflation Protected Bond Portfolio (Class A)		6.3
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		4.2
MFS Value Portfolio (Class A)		3.8
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		3.6
T. Rowe Price Large Cap Value Portfolio (Class A)		3.3

Asset Allocation

	% of Net Assets
Investment Grade Fixed Income		52.1
U.S. Large Cap Equities		21.2
International Developed Market Equities		8.6
High Yield Fixed Income		6.7
U.S. Small Cap Equities		3.2
International Fixed Income		3.1
Global Equities		2.5
Emerging Market Equities		1.0
U.S. Mid Cap Equities		0.9
Real Estate Equities		0.7

BHFTII-3

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse Asset Allocation 40 Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.60	%	$	1,000.00	$	959.30	$	2.96
	Hypothetical*		0.60	%	$	1,000.00	$	1,022.18	$	3.06
Class B (a)	Actual		0.85	%	$	1,000.00	$	958.90	$	4.20
	Hypothetical*		0.85	%	$	1,000.00	$	1,020.92	$	4.33

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

BHFTII-4

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Schedule of Investments as of December 31, 2018

Mutual Funds—100.0% of Net Assets

Security Description	Shares		Value
Affiliated Investment Companies—100.0%
Baillie Gifford International Stock Portfolio (Class A) (a)		12,636,754	$	139,257,024
BlackRock Bond Income Portfolio (Class A) (a)		5,184,673		533,710,269
BlackRock Capital Appreciation Portfolio (Class A) (a)		2,244,670		87,160,546
BlackRock High Yield Portfolio (Class A) (b)		3,744,378		27,146,742
Brighthouse Small Cap Value Portfolio (Class A) (b)		2,626,838		35,567,385
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A) (b)		5,735,931		54,720,784
Brighthouse/Artisan International Portfolio (Class A) (b)		10,297,149		101,941,774
Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (a)		57,859		12,257,347
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (b)		10,853,206		108,532,056
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) (b)		17,563,811		166,680,563
Brighthouse/Templeton International Bond Portfolio (Class A) (b) (c)		16,259,457		166,009,059
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (a)		6,480,131		194,468,723
Brighthouse/Wellington Large Cap Research Portfolio (Class A) (b)		8,511,904		112,272,012
Clarion Global Real Estate Portfolio (Class A) (b)		3,715,884		39,834,280
ClearBridge Aggressive Growth Portfolio (Class A) (b)		3,031,176		49,286,917
Harris Oakmark International Portfolio (Class A) (b)		12,068,941		146,758,327
Invesco Comstock Portfolio (Class A) (b)		11,929,458		158,184,609
Invesco Small Cap Growth Portfolio (Class A) (b)		1,867,112		23,376,242
Jennison Growth Portfolio (Class A) (a)		4,262,737		61,809,689
JPMorgan Core Bond Portfolio (Class A) (b)		36,522,424		365,954,687
JPMorgan Small Cap Value Portfolio (Class A) (b)		2,514,793		35,609,472
MFS Research International Portfolio (Class A) (b)		7,044,809		76,013,485
MFS Value Portfolio (Class A) (a)		14,634,475		202,102,099
Neuberger Berman Genesis Portfolio (Class A) (a)		1,312,340		24,357,032
Affiliated Investment Companies—(Continued)
Oppenheimer Global Equity Portfolio (Class A) (b)		2,414,183		49,370,040
PIMCO Inflation Protected Bond Portfolio (Class A) (b)		34,929,298		334,273,380
PIMCO Total Return Portfolio (Class A) (b)		44,314,158		504,738,262
T. Rowe Price Large Cap Growth Portfolio (Class A) (a)		4,278,186		88,601,222
T. Rowe Price Large Cap Value Portfolio (Class A) (b)		6,195,953		177,452,100
T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)		2,503,071		25,506,291
T. Rowe Price Small Cap Growth Portfolio (Class A) (a)		2,244,310		47,646,700
TCW Core Fixed Income Portfolio (Class A) (b)		42,315,541		422,309,103
Van Eck Global Natural Resources Portfolio (Class A) (a)		11,133,678		85,506,644
Wells Capital Management Mid Cap Value Portfolio (Class A) (b)		1,260,351		12,553,092
Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)		17,501,800		221,922,821
Western Asset Management U.S. Government Portfolio (Class A) (a)		39,067,470		448,885,227
Total Mutual Funds (Cost $5,573,083,870)				5,341,776,005
Total Investments—100.0% (Cost $5,573,083,870)				5,341,776,005
Other assets and liabilities (net)—0.0%				(1,649,831	)
Net Assets—100.0%			$	5,340,126,174

(a)	A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b)	A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c)	Non-income producing security.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Mutual Funds
Affiliated Investment Companies	$	5,341,776,005	$	—	$	—	$	5,341,776,005
Total Investments	$	5,341,776,005	$	—	$	—	$	5,341,776,005

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Affiliated investments at value (a)	$	5,341,776,005
Receivable for:
Affiliated investments sold		1,898,849
Fund shares sold		110,124
Total Assets		5,343,784,978
Liabilities
Payables for:
Fund shares redeemed		2,008,974
Accrued Expenses:
Management fees		261,621
Distribution and service fees		1,133,226
Deferred trustees’ fees		195,795
Other expenses		59,188
Total Liabilities		3,658,804
Net Assets	$	5,340,126,174
Net Assets Consist of:
Paid in surplus	$	5,225,822,915
Distributable earnings (Accumulated losses)		114,303,259
Net Assets	$	5,340,126,174
Net Assets
Class A	$	71,896,145
Class B		5,268,230,029
Capital Shares Outstanding*
Class A		6,623,981
Class B		490,582,326
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	10.85
Class B		10.74

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of affiliated investments was $5,573,083,870.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends from affiliated investments	$	126,419,085
Total investment income		126,419,085
Expenses
Management fees		3,388,804
Administration fees		26,349
Custodian and accounting fees		28,054
Distribution and service fees—Class B		14,867,467
Audit and tax services		32,224
Legal		45,317
Trustees’ fees and expenses		33,734
Miscellaneous		13,148
Total expenses		18,435,097
Net Investment Income		107,983,988
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Affiliated investments		111,222,097
Capital gain distributions from affiliated investments		166,883,634
Net realized gain		278,105,731
Net change in unrealized depreciation on affiliated investments		(637,581,474	)
Net realized and unrealized loss		(359,475,743	)
Net Decrease in Net Assets From Operations	$	(251,491,755	)

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	107,983,988		$	113,633,377
Net realized gain		278,105,731			192,716,050
Net change in unrealized appreciation (depreciation)		(637,581,474	)		377,130,095
Increase (decrease) in net assets from operations		(251,491,755	)		683,479,522
From Distributions to Shareholders(a)
Class A		(4,220,610	)		(4,512,999	)
Class B		(298,083,813	)		(333,555,859	)
Total distributions		(302,304,423	)		(338,068,858	)
Decrease in net assets from capital share transactions		(639,583,107	)		(633,085,723	)
Total decrease in net assets		(1,193,379,285	)		(287,675,059	)
Net Assets
Beginning of period		6,533,505,459			6,821,180,518
End of period	$	5,340,126,174		$	6,533,505,459	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		428,778		$	4,993,500			599,667		$	7,005,410
Reinvestments		370,554			4,220,610			396,921			4,512,999
Redemptions		(1,324,000	)		(15,273,783	)		(1,857,552	)		(21,746,447	)
Net decrease		(524,668	)	$	(6,059,673	)		(860,964	)	$	(10,228,038	)
Class B
Sales		4,016,490		$	46,082,631			4,797,937		$	55,532,011
Reinvestments		26,425,870			298,083,813			29,596,793			333,555,859
Redemptions		(85,161,873	)		(977,689,878	)		(87,555,984	)		(1,011,945,555	)
Net decrease		(54,719,513	)	$	(633,523,434	)		(53,161,254	)	$	(622,857,685	)
Decrease derived from capital shares transactions				$	(639,583,107	)				$	(633,085,723	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(1,894,168	)	$	(2,618,831	)
Class B		(129,964,072	)		(203,591,787	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $119,849,813 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	11.95		$	11.36		$	11.90		$	12.74		$	12.99
Income (Loss) from Investment Operations
Net investment income (a)		0.24			0.22			0.23			0.36			0.24
Net realized and unrealized gain (loss)		(0.72	)		1.00			0.48			(0.44	)		0.40
Total income (loss) from investment operations		(0.48	)		1.22			0.71			(0.08	)		0.64
Less Distributions
Distributions from net investment income		(0.27	)		(0.26	)		(0.46	)		(0.06	)		(0.41	)
Distributions from net realized capital gains		(0.35	)		(0.37	)		(0.79	)		(0.70	)		(0.48	)
Total distributions		(0.62	)		(0.63	)		(1.25	)		(0.76	)		(0.89	)
Net Asset Value, End of Period	$	10.85		$	11.95		$	11.36		$	11.90		$	12.74
Total Return (%) (b)		(4.25	)		11.01			6.33			(0.78	)		5.16
Ratios/Supplemental Data
Ratio of expenses to average net assets (%) (c)		0.06			0.06			0.06			0.06			0.06
Ratio of net investment income to average net assets (%) (d)		2.04			1.91			1.97			2.85			1.92
Portfolio turnover rate (%)		8			6			8			16			15
Net assets, end of period (in millions)	$	71.9		$	85.4		$	91.0		$	102.6		$	112.9
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	11.82		$	11.25		$	11.79		$	12.64		$	12.89
Income (Loss) from Investment Operations
Net investment income (a)		0.21			0.20			0.19			0.32			0.03
Net realized and unrealized gain (loss)		(0.71	)		0.97			0.49			(0.43	)		0.57
Total income (loss) from investment operations		(0.50	)		1.17			0.68			(0.11	)		0.60
Less Distributions
Distributions from net investment income		(0.23	)		(0.23	)		(0.43	)		(0.04	)		(0.37	)
Distributions from net realized capital gains		(0.35	)		(0.37	)		(0.79	)		(0.70	)		(0.48	)
Total distributions		(0.58	)		(0.60	)		(1.22	)		(0.74	)		(0.85	)
Net Asset Value, End of Period	$	10.74		$	11.82		$	11.25		$	11.79		$	12.64
Total Return (%) (b)		(4.40	)		10.64			6.09			(1.07	)		4.93
Ratios/Supplemental Data
Ratio of expenses to average net assets (%) (c)		0.31			0.31			0.31			0.31			0.31
Ratio of net investment income to average net assets (%) (d)		1.79			1.70			1.71			2.62			0.21
Portfolio turnover rate (%)		8			6			8			16			15
Net assets, end of period (in millions)	$	5,268.2		$	6,448.1		$	6,730.2		$	7,152.6		$	8,304.3

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.
(d)	Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 40 Portfolio (the “Asset Allocation Portfolio”), which is diversified. The Asset Allocation Portfolio operates under a “fund of funds” structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an “Underlying Portfolio,” and, collectively, the “Underlying Portfolios”). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Asset Allocation Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Asset Allocation Portfolio represent an equal pro rata interest in the Asset Allocation Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Asset Allocation Portfolio, and certain Asset Allocation Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Asset Allocation Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Asset Allocation Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Asset Allocation Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Asset Allocation Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Asset Allocation Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Asset Allocation Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income -The Asset Allocation Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

Dividends and Distributions to Shareholders -The Asset Allocation Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Asset Allocation Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Asset Allocation Portfolio

BHFTII-9

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

files U.S. federal tax returns. No income tax returns are currently under examination. The Asset Allocation Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

3. Certain Risks

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

The Asset Allocation Portfolio’s prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	475,473,762	$	0	$	1,142,782,555

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Asset Allocation Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Asset Allocation Portfolio. For providing investment management services to the Asset Allocation Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$3,388,804		0.100	%	Of the first $500 million
		0.075	%	Of the next $500 million
		0.050	%	On amounts in excess of $1 billion

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers however, such officers and trustees receive no compensation from the Trust.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2018 were as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	131,609,609	$	45,431,561	$	(8,604,063	)	$	3,251,653		$	(32,431,736	)	$	139,257,024
BlackRock Bond Income Portfolio (Class A)		621,892,284		19,773,976		(84,984,013	)		(2,599,790	)		(20,372,188	)		533,710,269
BlackRock Capital Appreciation Portfolio (Class A)		130,433,003		13,803,945		(50,676,981	)		22,777,646			(29,177,067	)		87,160,546
BlackRock High Yield Portfolio (Class A)		32,740,089		1,568,584		(4,913,603	)		(445,222	)		(1,803,106	)		27,146,742
Brighthouse Small Cap Value Portfolio (Class A)		65,207,033		2,969,930		(23,794,235	)		2,278,631			(11,093,974	)		35,567,385
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		65,893,282		4,826,022		(6,040,969	)		379,444			(10,336,995	)		54,720,784
Brighthouse/Artisan International Portfolio (Class A)		81,939,899		41,866,205		(7,294,612	)		1,036,672			(15,606,390	)		101,941,774
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		16,317,835		893,184		(2,258,839	)		651,964			(3,346,797	)		12,257,347
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		130,866,451		4,724,746		(23,521,996	)		849,667			(4,386,812	)		108,532,056
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		196,172,037		3,770,914		(30,754,733	)		(1,526,862	)		(980,793	)		166,680,563
Brighthouse/Templeton International Bond Portfolio (Class A)		188,929,044		86,826		(25,507,519	)		(5,165,187	)		7,665,895			166,009,059
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		245,031,002		16,194,281		(52,993,464	)		(10,967,890	)		(2,795,206	)		194,468,723
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		146,696,093		17,061,393		(28,675,741	)		5,414,110			(28,223,843	)		112,272,012
Clarion Global Real Estate Portfolio (Class A)		49,199,143		2,809,150		(5,621,910	)		627,440			(7,179,543	)		39,834,280
ClearBridge Aggressive Growth Portfolio (Class A)		97,831,193		3,222,977		(46,298,908	)		22,760,859			(28,229,204	)		49,286,917
Harris Oakmark International Portfolio (Class A)		180,618,158		31,544,882		(12,665,804	)		3,278,582			(56,017,491	)		146,758,327
Invesco Comstock Portfolio (Class A)		245,059,781		16,284,863		(67,012,903	)		26,387,415			(62,534,547	)		158,184,609
Invesco Small Cap Growth Portfolio (Class A)		48,957,984		3,759,563		(25,323,896	)		674,803			(4,692,212	)		23,376,242
Jennison Growth Portfolio (Class A)		97,596,570		11,098,278		(39,967,804	)		12,217,024			(19,134,379	)		61,809,689
JPMorgan Core Bond Portfolio (Class A)		425,261,137		11,975,966		(59,507,047	)		(4,209,754	)		(7,565,615	)		365,954,687
JPMorgan Small Cap Value Portfolio (Class A)		48,815,179		3,119,102		(7,889,628	)		560,326			(8,995,507	)		35,609,472
MFS Research International Portfolio (Class A)		98,597,136		1,983,346		(10,595,624	)		2,731,900			(16,703,273	)		76,013,485
MFS Value Portfolio (Class A)		245,152,176		18,940,274		(52,103,481	)		11,852,761			(21,739,631	)		202,102,099
MFS Value Portfolio II (Class A)		32,691,765		9,302,474		(1,151,632	)		45,004			(40,887,611	)		—
Neuberger Berman Genesis Portfolio (Class A)		32,672,523		3,775,630		(6,993,982	)		3,586,347			(8,683,486	)		24,357,032
Oppenheimer Global Equity Portfolio (Class A)		65,298,260		6,312,938		(9,021,208	)		2,281,028			(15,500,978	)		49,370,040
PIMCO Inflation Protected Bond Portfolio (Class A)		393,850,367		6,768,484		(51,638,860	)		(6,861,493	)		(7,845,118	)		334,273,380
PIMCO Total Return Portfolio (Class A)		589,355,455		8,819,559		(83,758,828	)		(8,371,556	)		(1,306,368	)		504,738,262

BHFTII-11

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Depreciation			Ending Value as of December 31, 2018
T. Rowe Price Large Cap Growth Portfolio (Class A)	$	130,008,054	$	19,010,961	$	(44,221,030	)	$	8,371,574		$	(24,568,337	)	$	88,601,222
T. Rowe Price Large Cap Value Portfolio (Class A)		260,984,299		24,352,346		(66,352,033	)		21,594,535			(63,127,047	)		177,452,100
T. Rowe Price Mid Cap Growth Portfolio (Class A)		32,611,311		3,952,931		(7,076,590	)		1,616,860			(5,598,221	)		25,506,291
T. Rowe Price Small Cap Growth Portfolio (Class A)		49,038,106		17,842,324		(11,395,609	)		1,047,231			(8,885,352	)		47,646,700
TCW Core Fixed Income Portfolio (Class A)		490,979,261		11,915,263		(68,663,956	)		(796,965	)		(11,124,500	)		422,309,103
Van Eck Global Natural Resources Portfolio (Class A)		65,625,862		59,719,196		(4,859,523	)		(985,873	)		(33,993,018	)		85,506,644
Wells Capital Management Mid Cap Value Portfolio (Class A)		16,373,144		1,505,009		(1,944,900	)		(414,554	)		(2,965,607	)		12,553,092
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		261,771,526		13,054,787		(30,423,978	)		277,484			(22,756,998	)		221,922,821
Western Asset Management U.S. Government Portfolio (Class A)		523,368,124		11,431,892		(78,272,653	)		(2,983,717	)		(4,658,419	)		448,885,227
	$	6,535,444,175	$	475,473,762	$	(1,142,782,555	)	$	111,222,097		$	(637,581,474	)	$	5,341,776,005

Security Description	Capital Gain Distributions from Affiliated Investments		Income earned from affiliates during the period		Number of shares held at December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	—	$	1,823,142		12,636,754
BlackRock Bond Income Portfolio (Class A)		—		19,707,947		5,184,673
BlackRock Capital Appreciation Portfolio (Class A)		13,634,724		128,650		2,244,670
BlackRock High Yield Portfolio (Class A)		—		1,568,584		3,744,378
Brighthouse Small Cap Value Portfolio (Class A)		2,376,367		568,770		2,626,838
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		—		1,649,335		5,735,931
Brighthouse/Artisan International Portfolio (Class A)		—		1,705,032		10,297,149
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		795,484		94,204		57,859
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		—		4,719,428		10,853,206
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		—		3,761,096		17,563,811
Brighthouse/Templeton International Bond Portfolio (Class A)		—		—		16,259,457
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		12,176,029		4,012,633		6,480,131
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		15,621,371		1,408,147		8,511,904
Clarion Global Real Estate Portfolio (Class A)		—		2,781,656		3,715,884
ClearBridge Aggressive Growth Portfolio (Class A)		2,724,244		483,132		3,031,176
Harris Oakmark International Portfolio (Class A)		6,668,833		3,174,158		12,068,941
Invesco Comstock Portfolio (Class A)		14,513,915		1,711,715		11,929,458
Invesco Small Cap Growth Portfolio (Class A)		3,570,202		—		1,867,112
Jennison Growth Portfolio (Class A)		10,801,323		254,711		4,262,737
JPMorgan Core Bond Portfolio (Class A)		—		11,911,795		36,522,424
JPMorgan Small Cap Value Portfolio (Class A)		2,524,935		576,503		2,514,793
MFS Research International Portfolio (Class A)		—		1,966,711		7,044,809
MFS Value Portfolio (Class A)		15,265,227		3,635,296		14,634,475
MFS Value Portfolio II (Class A)		8,299,657		998,229		—
Neuberger Berman Genesis Portfolio (Class A)		3,663,647		105,005		1,312,340
Oppenheimer Global Equity Portfolio (Class A)		5,544,706		734,189		2,414,183
PIMCO Inflation Protected Bond Portfolio (Class A)		—		6,724,909		34,929,298
PIMCO Total Return Portfolio (Class A)		—		8,755,954		44,314,158
T. Rowe Price Large Cap Growth Portfolio (Class A)		18,537,272		434,914		4,278,186
T. Rowe Price Large Cap Value Portfolio (Class A)		20,031,096		4,296,700		6,195,953
T. Rowe Price Mid Cap Growth Portfolio (Class A)		3,950,626		—		2,503,071
T. Rowe Price Small Cap Growth Portfolio (Class A)		4,869,844		70,809		2,244,310
TCW Core Fixed Income Portfolio (Class A)		—		11,838,678		42,315,541
Van Eck Global Natural Resources Portfolio (Class A)		—		192,693		11,133,678
Wells Capital Management Mid Cap Value Portfolio (Class A)		1,314,132		188,784		1,260,351
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		—		13,046,942		17,501,800
Western Asset Management U.S. Government Portfolio (Class A)		—		11,388,634		39,067,470
	$	166,883,634	$	126,419,085

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-12

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	5,614,813,097
Gross unrealized appreciation		45,670,350
Gross unrealized depreciation		(318,707,442	)
Net unrealized appreciation (depreciation)	$	(273,037,092	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$120,439,849	$	132,423,201	$	181,864,574	$	205,645,657	$	302,304,423	$	338,068,858

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$118,029,169	$	269,506,978	$	(273,037,092	)	$	—	$	114,499,055

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Asset Allocation Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-13

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse Asset Allocation 40 Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 40 Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 40 Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-14

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-15

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-16

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-17

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Board of Trustees’ Consideration of Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with Brighthouse Investment Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser, and aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Agreement, each of which was prepared by the Adviser specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the “Asset Allocation Portfolios”) and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the “American Funds of Funds”). The Board considered the Adviser’s services as investment manager to the Portfolios, including its trading practices and oversight of transition management (as applicable), compliance program and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Agreement on aPortfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Portfolios, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

BHFTII-19

Brighthouse Funds Trust II

Brighthouse Asset Allocation 40 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse Asset Allocation 40 Portfolio.The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for theone-, three-, and five-year periods ended June 30, 2018. The Board also considered that the Portfolio outperformed the average of its Morningstar category for the three-year and five-year periods ended June 30, 2018, and performed equally to the average of its Morningstar category for theone-year period ended June 30, 2018. The Board further considered that the Portfolio underperformed the Brighthouse AA 40 Narrow Index for theone-, three- and five-year periods ended September 30, 2018. In addition, the Board noted that the Portfolio outperformed the Dow Jones Moderately Conservative Index for the same periods.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median and above the Expense Universe median. The Board further considered that the Portfolio’s total expenses (exclusive of12b-l fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds at the Portfolio’s current size.

BHFTII-20

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*

PERFORMANCE

For theone-year period ended December 31, 2018, the Class A and B shares of the Brighthouse Asset Allocation 60 Portfolio returned-5.93% and-6.12%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index¹, returned-5.21%.

MARKET ENVIRONMENT/CONDITIONS

After a great 2017 withrecord-low volatility and the strongest January stock market since 1997, investors got shaken back to reality in February when equity markets took a dive following higher-than-expected wage growth. The concern was that this would lead to higher inflation followed by additional Federal Reserve (the “Fed”) interest rate hikes, leading to an unceremonious end to the second-longest economic expansion on record. However, inflation fears soon after fizzled (at least until the end of 2018) and the Fed stayed the course, despite the Tax Cuts and Jobs Act of 2017 providing a noteworthy lift to gross domestic product (“GDP”) growth. GDP growth, incidentally, is on track to reach the highest annual level since before the2008-09 recession. However, an escalating trade war between the U.S. and many of its major trading partners sent another wave of anxiety toward the market, which responded by pulling back sharply once again.

The beginning of the year turned out to be a microcosm of the remainder of 2018. This point in the economic cycle finds many market participants scrambling for indications that the expansion will end. As such, equity markets have become irrationally sensitive to individual data points, both positive and negative, with little regard to their historic predictive power on market results. The consequence was elevated market volatility in the second quarter, driven by positive economic growth and an accommodative Fed on one side, and on the other side by negative trade war and housing market news. In the third quarter, however, equity markets rebounded as corporate profits hit a newall-time high, GDP growth for second quarter came in at 4.2%, and unemployment dropped to 3.7%—the lowest number since 1969. The result in the third quarter was the best quarterly return for the S&P 500 Index since 2013.

As we got to the fourth quarter though, sentiment turned significantly worse, and the S&P 500 Index did an about-face, delivering its worst quarterly return since 2011. Gone was the sense of confidence that the strong economy could propel equity markets ever higher. Front and center were concerns about the continued trade war escalation,mid-term election uncertainty, a housing market dampened by rising interest rates and lofty prices, and a Fed that was now deemed too hawkish by projecting two additional rate hikes in 2019, despite having raised rates 4 times in 2018 (from a target range of1.25%-1.50% to a target range of2.25%-2.5%) and despite the market volatility.

News from overseas did little to attenuate concerns on the home front. Troubling to many is the ongoing Brexit (United Kingdom’s decision to withdraw from the European Union) situation, as leaders in the U.K. struggle to agree on a deal ensuring an orderly exit from the E.U.—an exit which is scheduled to occur on March 29, 2019. Highlighting the extent of disagreement are the two votes of confidence in Prime Minister Theresa May’s leadership, held in December 2018 and January 2019, both of which she won (in the U.K., a vote of confidence is a procedure used to remove a prime minister from office). Concerns about slowing growth in China have been receiving headlines as well. Leadership in China is in the middle of a long-term plan which is designed to transition the country from a manufacturing-driven economy to a service-driven economy. More worrisome to market participants is the fact that China is also in the process of dealing with an increasingly large debt burden as that plan unfolds. The outcome of both is unclear, which has led to some increased market volatility. However, it was confidence-inspiring that China had enough wherewithal to take the foot off the brake when it saw its economic growth rates declining faster than intended.

All in all, 2018 was a difficult year for investors. The economy is growing at a healthy pace, but the main question is for how long? The uncertainty caused all the major asset classes to be down for the year except for core bonds, which managed to creep in to positive territory, barely eking out a positive return with 0.01% for the year (as measured by the Bloomberg Barclays U.S. Aggregate Bond Index). International equities were generally the worst-performing asset classes with Emerging Markets equity and Foreign Developed equity down 14.6% and 13.8% respectively, as measured by the MSCI Emerging Markets Index and the MSCI EAFE Index. U.S. Large Cap equity did significantly better but was still down 4.4% for the year as measured by the S&P 500 Index, whereas Mid Cap equity lost 9.1% and Small Cap equity lost 11.0% for the year, as measured by the Russell Mid Cap and the Russell 2000 indices, in that order.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Brighthouse Asset Allocation 60 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 60% to equities and 40% to fixed income. Over the twelve-month period, the Portfolio lagged the Dow Jones Moderate Index. Strong performance within the Mid and Small Cap portfolios and a favorable overweight to Large Cap equity was insufficient to attenuate the combination of underperformance within Large Cap and International equities, an underweight to cash, and an overweight to equities in general—all detractors.

The contribution from the underlying fixed income portfolios to relative performance was positive in 2018. The biggest contributor by far to performance was the Brighthouse/Templeton International Bond Portfolio, which outpaced its benchmark by 3.1%. The strategy’s relative outperformance during the period was primarily attributable to currency positions, notably, the portfolio’s underweight position in the euro and the Australian dollar. Outside of currency exposure, short duration positioning in the U.S. helped returns as well. The Brighthouse/Eaton Vance Floating Rate Portfolio outperformed its

BHFTII-1

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*—(Continued)

benchmark by 0.1%. The portfolio’s underweight to defaulted loans aided performance relative to its benchmark over the year, as did favorable security selection in Financial Services and Energy. At the other end of the spectrum was the Western Asset Management Strategic Bond Opportunities Portfolio, which lagged its benchmark by 3.8%. Portfolio performance was negatively impacted by its U.S. duration and yield curve positioning, as well as currency and emerging markets positions. During the year, corporate credit spreads widened and experienced heightened levels of volatility. As such, the portfolio’s investment grade corporate credit positions were also negative contributors to performance. Also detracting in fixed income was the Brighthouse/Franklin Low Duration Total Return Portfolio, which underperformed its benchmark by 0.9%, largely driven by Collateralized Loan Obligation positions.

Contribution from the underlying domestic equity portfolios to relative performance was negative, as strong performance by the Mid Cap and Small Cap equity portfolios was insufficient to make up for the underperformance within the Large Cap equity portfolios. Within Large Cap, the Brighthouse/Wellington Core Equity Opportunities Portfolio had a strong year, as it outperformed its benchmark by 4.7%. Strong security selection within Consumer Discretionary, Consumer Staples, and Materials sectors helped. The ClearBridge Aggressive Growth Portfolio, on the other hand, experienced considerable underperformance in 2018, falling shy of its benchmark by 4.7% for the period. The underperformance was driven by an unfavorable overweight to Energy, in addition to suboptimal security selection within Information Technology, Consumer Discretionary, and Industrials. Another laggard for the period was the Invesco Comstock Portfolio, which underperformed its benchmark by 3.7% for the year. The result was primarily due to an overweight to Energy and unfavorable security selection within Financial Services, Healthcare, and Energy. Within Mid Cap equity, only the T. Rowe Price Mid Cap Growth Portfolio outperformed its benchmark. The portfolio outpaced its benchmark by 2.7% as positive results were driven by security selection within Communication Services, Financial Services, and Materials. Within Small Cap equity, four out of six managers outperformed their respective benchmarks. The strongest performer was the Loomis Sayles Small Cap Growth Portfolio, which outperformed its benchmark by 9.9% in 2018. The portfolio benefitted significantly from strong security selection within Healthcare, Technology, and Consumer Discretionary. In addition, the Neuberger Berman Genesis Portfolio outperformed its benchmark by 6.2% in 2018 as the portfolio’s focus on higher-quality companies with higher return on equity paid off. Security selection in Healthcare, Consumer Staples, and Information Technology made the largest positive impact on relative results.

Non-U.S. equity was a headwind to relative performance in 2018. Most notably, the Harris Oakmark International Portfolio underperformed its benchmark by 9.9% during the year as security selection and country weightings caused returns to suffer. Performance compared to the benchmark was hurt by holdings in the U.K., Germany, and France as well as suboptimal security selection in Consumer Discretionary, Financial Services, and Industrials. The best performance in the category came from the Brighthouse/Artisan International Portfolio, which outperformed its benchmark by 3.5% in 2018. Much of the outperformance was a result of strong security selection within Technology, Materials, and Consumer Discretionary. In addition, the Brighthouse/Aberdeen Emerging Market Equity Portfolio was additive to relative results during the year, outperforming its benchmark by 0.7% as an underweight to China and positive security selection in Consumer Discretionary, Financial Services, and Technology supported returns.

Investment Committee

Brighthouse Investment Advisers, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse Asset Allocation 60 Portfolio
Class A	��	-5.93		3.91		8.75
Class B		-6.12		3.65		8.48
Dow Jones Moderate Index		-5.21		4.11		8.22

¹ The Dow Jones Moderate Index is a total return index designed to provide asset allocation strategists with a target risk benchmark. Each month, the Index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) such that the risk combination will have 60% of the risk of an all equity portfolio.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
BlackRock Bond Income Portfolio (Class A)		7.0
PIMCO Total Return Portfolio (Class A)		6.4
TCW Core Fixed Income Portfolio (Class A)		5.8
MFS Value Portfolio (Class A)		5.4
JPMorgan Core Bond Portfolio (Class A)		4.8
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		4.5
T. Rowe Price Large Cap Value Portfolio (Class A)		4.4
Western Asset Management U.S. Government Portfolio (Class A)		4.3
Invesco Comstock Portfolio (Class A)		4.0
Harris Oakmark International Portfolio (Class A)		3.5

Asset Allocation

	% of Net Assets
Investment Grade Fixed Income		33.6
U.S. Large Cap Equities		32.3
International Developed Market Equities		12.7
U.S. Small Cap Equities		5.5
High Yield Fixed Income		4.8
Global Equities		3.4
International Fixed Income		3.2
Emerging Market Equities		1.8
Real Estate Equities		1.5
U.S. Mid Cap Equities		1.2

BHFTII-3

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse Asset Allocation 60 Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.63	%	$	1,000.00	$	934.70	$	3.07
	Hypothetical*		0.63	%	$	1,000.00	$	1,022.03	$	3.21
Class B (a)	Actual		0.88	%	$	1,000.00	$	934.30	$	4.29
	Hypothetical*		0.88	%	$	1,000.00	$	1,020.77	$	4.48

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

BHFTII-4

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Schedule of Investments as of December 31, 2018

Mutual Funds—100.0% of Net Assets

Security Description	Shares		Value
Affiliated Investment Companies—100.0%
Baillie Gifford International Stock Portfolio (Class A) (a)		36,558,227	$	402,871,658
BlackRock Bond Income Portfolio (Class A) (a)		8,042,441		827,888,891
BlackRock Capital Appreciation Portfolio (Class A) (a)		8,157,182		316,743,365
BlackRock High Yield Portfolio (Class A) (b)		10,160,616		73,664,465
Brighthouse Small Cap Value Portfolio (Class A) (b)		10,077,385		136,447,791
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A) (b)		22,840,522		217,898,576
Brighthouse/Artisan International Portfolio (Class A) (b)		35,226,670		348,744,037
Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (a)		133,503		28,282,577
Brighthouse/Dimensional International Small Company Portfolio (Class A) (a)		9,926,977		109,891,634
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (b)		24,570,324		245,703,237
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) (b)		26,524,713		251,719,522
Brighthouse/Templeton International Bond Portfolio (Class A) (b) (c)		36,836,359		376,099,228
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (a)		17,820,173		534,783,394
Brighthouse/Wellington Large Cap Research Portfolio (Class A) (b)		26,170,908		345,194,281
Clarion Global Real Estate Portfolio (Class A) (b)		16,911,822		181,294,730
ClearBridge Aggressive Growth Portfolio (Class A) (b)		19,259,597		313,161,040
Harris Oakmark International Portfolio (Class A) (b)		34,285,761		416,914,858
Invesco Comstock Portfolio (Class A) (b)		36,055,979		478,102,286
Invesco Small Cap Growth Portfolio (Class A) (b)		10,737,421		134,432,508
Jennison Growth Portfolio (Class A) (a)		25,634,657		371,702,530
JPMorgan Core Bond Portfolio (Class A) (b)		57,342,575		574,572,601
JPMorgan Small Cap Value Portfolio (Class A) (b)		5,783,488		81,894,192
Loomis Sayles Small Cap Growth Portfolio (Class A) (a)		4,160,073		54,871,365
MFS Research International Portfolio (Class A) (b)		21,702,709		234,172,234
MFS Value Portfolio (Class A) (a)		46,174,221		637,665,993
Affiliated Investment Companies—(Continued)
Neuberger Berman Genesis Portfolio (Class A) (a)		4,563,934		84,706,611
Oppenheimer Global Equity Portfolio (Class A) (b)		5,571,250		113,932,054
PIMCO Inflation Protected Bond Portfolio (Class A) (b)		39,557,945		378,569,532
PIMCO Total Return Portfolio (Class A) (b)		66,950,653		762,567,933
T. Rowe Price Large Cap Growth Portfolio (Class A) (a)		15,479,175		320,573,717
T. Rowe Price Large Cap Value Portfolio (Class A) (b)		18,278,006		523,482,105
T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)		8,633,481		87,975,168
T. Rowe Price Small Cap Growth Portfolio (Class A) (a)		7,789,260		165,365,981
TCW Core Fixed Income Portfolio (Class A) (b)		69,103,821		689,656,135
Van Eck Global Natural Resources Portfolio (Class A) (a)		37,935,992		291,348,421
Wells Capital Management Mid Cap Value Portfolio (Class A) (b)		2,898,314		28,867,206
Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)		19,803,905		251,113,515
Western Asset Management U.S. Government Portfolio (Class A) (a)		44,293,605		508,933,522
Total Mutual Funds (Cost $12,406,314,547)				11,901,808,893
Total Investments—100.0% (Cost $12,406,314,547)				11,901,808,893
Other assets and liabilities (net)—0.0%				(3,270,717	)
Net Assets—100.0%			$	11,898,538,176

(a)	A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b)	A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c)	Non-income producing security.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Mutual Funds
Affiliated Investment Companies	$	11,901,808,893	$	—	$	—	$	11,901,808,893
Total Investments	$	11,901,808,893	$	—	$	—	$	11,901,808,893

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Affiliated investments at value (a)	$	11,901,808,893
Receivable for:
Affiliated investments sold		4,127,565
Fund shares sold		124,637
Total Assets		11,906,061,095
Liabilities
Payables for:
Fund shares redeemed		4,252,202
Accrued Expenses:
Management fees		546,770
Distribution and service fees		2,510,877
Deferred trustees’ fees		153,856
Other expenses		59,214
Total Liabilities		7,522,919
Net Assets	$	11,898,538,176
Net Assets Consist of:
Paid in surplus	$	11,235,662,856
Distributable earnings (Accumulated losses)		662,875,320
Net Assets	$	11,898,538,176
Net Assets
Class A	$	294,567,359
Class B		11,603,970,817
Capital Shares Outstanding*
Class A		26,058,809
Class B		1,032,636,685
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	11.30
Class B		11.24

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of affiliated investments was $12,406,314,547.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends from affiliated investments	$	248,161,788
Total investment income		248,161,788
Expenses
Management fees		7,197,874
Administration fees		26,349
Custodian and accounting fees		28,054
Distribution and service fees—Class B		33,288,833
Audit and tax services		32,224
Legal		45,317
Trustees’ fees and expenses		33,734
Miscellaneous		18,642
Total expenses		40,671,027
Net Investment Income		207,490,761
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Affiliated investments		426,938,179
Capital gain distributions from affiliated investments		597,468,006
Net realized gain		1,024,406,185
Net change in unrealized depreciation on affiliated investments		(2,005,059,968	)
Net realized and unrealized loss		(980,653,783	)
Net Decrease in Net Assets From Operations	$	(773,163,022	)

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	207,490,761		$	207,880,140
Net realized gain		1,024,406,185			577,797,244
Net change in unrealized appreciation (depreciation)		(2,005,059,968	)		1,198,485,030
Increase (decrease) in net assets from operations		(773,163,022	)		1,984,162,414
From Distributions to Shareholders (a)
Class A		(18,769,198	)		(19,963,234	)
Class B		(726,631,786	)		(802,669,110	)
Total distributions		(745,400,984	)		(822,632,344	)
Decrease in net assets from capital share transactions		(1,115,055,027	)		(864,851,554	)
Total increase (decrease) in net assets		(2,633,619,033	)		296,678,516
Net Assets
Beginning of period		14,532,157,209			14,235,478,693
End of period	$	11,898,538,176		$	14,532,157,209	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,420,550		$	17,773,311			1,551,453		$	19,031,190
Reinvestments		1,532,179			18,769,198			1,681,823			19,963,234
Redemptions		(3,848,173	)		(47,749,437	)		(4,448,039	)		(54,563,389	)
Net decrease		(895,444	)	$	(11,206,928	)		(1,214,763	)	$	(15,568,965	)
Class B
Sales		7,906,396		$	98,073,809			8,139,195		$	98,997,001
Reinvestments		59,608,842			726,631,786			67,907,708			802,669,110
Redemptions		(156,425,620	)		(1,928,553,694	)		(143,538,036	)		(1,750,948,700	)
Net decrease		(88,910,382	)	$	(1,103,848,099	)		(67,491,133	)	$	(849,282,589	)
Decrease derived from capital shares transactions				$	(1,115,055,027	)				$	(864,851,554	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(6,636,499	)	$	(13,326,735	)
Class B		(243,506,359	)		(559,162,751	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $223,273,994 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	12.72		$	11.76		$	12.50		$	13.57		$	13.74
Income (Loss) from Investment Operations
Net investment income (a)		0.22			0.21			0.21			0.32			0.21
Net realized and unrealized gain (loss)		(0.92	)		1.50			0.63			(0.41	)		0.48
Total income (loss) from investment operations		(0.70	)		1.71			0.84			(0.09	)		0.69
Less Distributions
Distributions from net investment income		(0.24	)		(0.25	)		(0.43	)		(0.10	)		(0.32	)
Distributions from net realized capital gains		(0.48	)		(0.50	)		(1.15	)		(0.88	)		(0.54	)
Total distributions		(0.72	)		(0.75	)		(1.58	)		(0.98	)		(0.86	)
Net Asset Value, End of Period	$	11.30		$	12.72		$	11.76		$	12.50		$	13.57
Total Return (%) (b)		(5.93	)		14.93			7.47			(0.99	)		5.29
Ratios/Supplemental Data
Ratio of expenses to average net assets (%) (c)		0.05			0.05			0.05			0.05			0.05
Ratio of net investment income to average net assets (%) (d)		1.76			1.68			1.74			2.40			1.58
Portfolio turnover rate (%)		10			6			10			15			16
Net assets, end of period (in millions)	$	294.6		$	343.0		$	331.2		$	330.1		$	353.0
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	12.65		$	11.69		$	12.44		$	13.52		$	13.69
Income (Loss) from Investment Operations
Net investment income (a)		0.19			0.17			0.18			0.28			0.05
Net realized and unrealized gain (loss)		(0.91	)		1.51			0.62			(0.41	)		0.61
Total income (loss) from investment operations		(0.72	)		1.68			0.80			(0.13	)		0.66
Less Distributions
Distributions from net investment income		(0.21	)		(0.22	)		(0.40	)		(0.07	)		(0.29	)
Distributions from net realized capital gains		(0.48	)		(0.50	)		(1.15	)		(0.88	)		(0.54	)
Total distributions		(0.69	)		(0.72	)		(1.55	)		(0.95	)		(0.83	)
Net Asset Value, End of Period	$	11.24		$	12.65		$	11.69		$	12.44		$	13.52
Total Return (%) (b)		(6.12	)		14.73			7.11			(1.27	)		5.05
Ratios/Supplemental Data
Ratio of expenses to average net assets (%) (c)		0.30			0.30			0.30			0.30			0.30
Ratio of net investment income to average net assets (%) (d)		1.51			1.43			1.52			2.15			0.39
Portfolio turnover rate (%)		10			6			10			15			16
Net assets, end of period (in millions)	$	11,604.0		$	14,189.2		$	13,904.3		$	14,389.8		$	16,127.1

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.
(d)	Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 60 Portfolio (the “Asset Allocation Portfolio”), which is diversified. The Asset Allocation Portfolio operates under a “fund of funds” structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an “Underlying Portfolio,” and, collectively, the “Underlying Portfolios”). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Asset Allocation Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Asset Allocation Portfolio represent an equal pro rata interest in the Asset Allocation Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Asset Allocation Portfolio, and certain Asset Allocation Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Asset Allocation Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Asset Allocation Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Asset Allocation Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements -The Asset Allocation Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Asset Allocation Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Asset Allocation Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income -The Asset Allocation Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

Dividends and Distributions to Shareholders - The Asset Allocation Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes - It is the Asset Allocation Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable

BHFTII-9

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Asset Allocation Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Asset Allocation Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

3. Certain Risks

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

The Asset Allocation Portfolio’s prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	1,328,211,342	$	0	$	2,384,308,071

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Asset Allocation Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Asset Allocation Portfolio. For providing investment management services to the Asset Allocation Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$7,197,874		0.100	%	Of the first $500 million
		0.075	%	Of the next $500 million
		0.050	%	On amounts in excess of $1 billion

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers however, such officers and trustees receive no compensation from the Trust.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2018 were as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/ (Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	367,290,325	$	138,673,785	$	(18,349,818	)	$	6,888,095		$	(91,630,729	)	$	402,871,658
BlackRock Bond Income Portfolio (Class A)		937,204,948		30,639,223		(104,815,341	)		(3,773,869	)		(31,366,070	)		827,888,891
BlackRock Capital Appreciation Portfolio (Class A)		438,752,454		50,747,749		(144,918,060	)		50,914,066			(78,752,844	)		316,743,365
BlackRock High Yield Portfolio (Class A)		87,707,763		4,260,313		(12,169,612	)		(2,015,671	)		(4,118,328	)		73,664,465
Brighthouse Small Cap Value Portfolio (Class A)		146,222,771		38,050,103		(12,902,077	)		1,977,805			(36,900,811	)		136,447,791
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		257,588,183		19,186,404		(18,861,811	)		947,111			(40,961,311	)		217,898,576
Brighthouse/Artisan International Portfolio (Class A)		328,666,068		91,894,807		(23,160,566	)		3,229,151			(51,885,423	)		348,744,037
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		73,169,341		2,067,430		(40,435,745	)		9,909,377			(16,427,826	)		28,282,577
Brighthouse/Dimensional International Small Company Portfolio (Class A)		147,053,336		12,980,709		(9,195,800	)		445,478			(41,392,089	)		109,891,634
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		290,810,424		10,669,386		(47,717,826	)		1,692,504			(9,751,251	)		245,703,237
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		287,353,076		5,685,681		(37,573,248	)		(1,912,307	)		(1,833,680	)		251,719,522
Brighthouse/Templeton International Bond Portfolio (Class A)		422,397,317		166,828		(52,035,429	)		858,800			4,711,712			376,099,228
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		659,216,437		44,837,872		(130,302,537	)		6,264,099			(45,232,477	)		534,783,394
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		438,830,661		52,651,796		(75,150,207	)		13,311,704			(84,449,673	)		345,194,281
Clarion Global Real Estate Portfolio (Class A)		220,223,742		12,837,318		(21,790,646	)		4,465,323			(34,441,007	)		181,294,730
ClearBridge Aggressive Growth Portfolio (Class A)		475,383,613		20,652,999		(145,364,842	)		84,218,352			(121,729,082	)		313,161,040
Harris Oakmark International Portfolio (Class A)		477,461,694		116,490,002		(26,780,352	)		4,381,399			(154,637,885	)		416,914,858
Invesco Comstock Portfolio (Class A)		695,981,162		49,099,138		(156,571,687	)		57,481,771			(167,888,098	)		478,102,286
Invesco Small Cap Growth Portfolio (Class A)		219,322,835		20,922,448		(77,800,404	)		(3,253,002	)		(24,759,369	)		134,432,508
Jennison Growth Portfolio (Class A)		508,798,991		67,496,154		(154,410,888	)		49,504,040			(99,685,767	)		371,702,530
JPMorgan Core Bond Portfolio (Class A)		646,643,567		18,810,923		(72,822,867	)		(5,482,030	)		(12,576,992	)		574,572,601
JPMorgan Small Cap Value Portfolio (Class A)		109,342,013		7,231,984		(15,044,585	)		1,295,631			(20,930,851	)		81,894,192
Loomis Sayles Small Cap Growth Portfolio (Class A)		73,002,014		9,094,598		(20,933,433	)		4,967,215			(11,259,029	)		54,871,365
MFS Research International Portfolio (Class A)		293,941,976		5,943,908		(22,521,773	)		3,251,713			(46,443,590	)		234,172,234
MFS Value Portfolio (Class A)		733,278,851		60,066,385		(131,905,094	)		29,659,596			(53,433,745	)		637,665,993
MFS Value Portfolio II (Class A)		110,019,478		31,673,871		(2,633,914	)		83,148			(139,142,583	)		—
Neuberger Berman Genesis Portfolio (Class A)		146,521,277		13,212,927		(57,983,799	)		25,446,193			(42,489,987	)		84,706,611
Oppenheimer Global Equity Portfolio (Class A)		146,511,783		14,484,019		(16,304,799	)		4,027,074			(34,786,023	)		113,932,054

BHFTII-11

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Appreciation / (Depreciation)			Ending Value as of December 31, 2018
PIMCO Inflation Protected Bond Portfolio (Class A)	$	433,309,974	$	7,634,271	$	(45,780,810	)	$	(5,875,982	)	$	(10,717,921	)	$	378,569,532
PIMCO Total Return Portfolio (Class A)		863,802,717		13,364,710		(100,482,239	)		(12,056,015	)		(2,061,240	)		762,567,933
T. Rowe Price Large Cap Growth Portfolio (Class A)		435,972,718		69,697,913		(122,664,783	)		30,872,017			(93,304,148	)		320,573,717
T. Rowe Price Large Cap Value Portfolio (Class A)		731,946,557		72,326,891		(157,555,719	)		49,316,740			(172,552,364	)		523,482,105
T. Rowe Price Mid Cap Growth Portfolio (Class A)		146,107,849		13,795,088		(59,303,878	)		12,650,513			(25,274,404	)		87,975,168
T. Rowe Price Small Cap Growth Portfolio (Class A)		219,757,542		17,252,963		(46,411,594	)		8,578,235			(33,811,165	)		165,365,981
TCW Core Fixed Income Portfolio (Class A)		774,872,464		19,509,630		(85,786,819	)		(1,349,020	)		(17,590,120	)		689,656,135
Van Eck Global Natural Resources Portfolio (Class A)		293,994,295		132,942,260		(17,509,681	)		(1,533,586	)		(116,544,867	)		291,348,421
Wells Capital Management Mid Cap Value Portfolio (Class A)		36,703,020		3,423,233		(3,501,414	)		(787,164	)		(6,970,469	)		28,867,206
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		290,934,864		14,732,282		(29,186,342	)		994,290			(26,361,579	)		251,113,515
Western Asset Management U.S. Government Portfolio (Class A)		569,929,311		13,003,341		(65,667,632	)		(2,654,615	)		(5,676,883	)		508,933,522
	$	14,536,027,411	$	1,328,211,342	$	(2,384,308,071	)	$	426,938,179		$	(2,005,059,968	)	$	11,901,808,893

Security Description	Capital Gain Distributions from Affiliated Investments		Income earned from affiliates during the period		Number of shares held at December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	—	$	5,237,601		36,558,227
BlackRock Bond Income Portfolio (Class A)		—		30,453,659		8,042,441
BlackRock Capital Appreciation Portfolio (Class A)		50,195,241		473,614		8,157,182
BlackRock High Yield Portfolio (Class A)		—		4,259,400		10,160,616
Brighthouse Small Cap Value Portfolio (Class A)		8,935,890		2,138,754		10,077,385
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		—		6,561,657		22,840,522
Brighthouse/Artisan International Portfolio (Class A)		—		5,777,853		35,226,670
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		1,841,520		218,080		133,503
Brighthouse/Dimensional International Small Company Portfolio (Class A)		9,312,604		3,624,073		9,926,977
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		—		10,661,066		24,570,324
Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)		—		5,661,881		26,524,713
Brighthouse/Templeton International Bond Portfolio (Class A)		—		—		36,836,359
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		33,703,002		11,106,888		17,820,173
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		48,276,362		4,351,744		26,170,908
Clarion Global Real Estate Portfolio (Class A)		—		12,741,786		16,911,822
ClearBridge Aggressive Growth Portfolio (Class A)		17,529,082		3,108,704		19,259,597
Harris Oakmark International Portfolio (Class A)		18,813,925		8,954,845		34,285,761
Invesco Comstock Portfolio (Class A)		43,799,004		5,165,484		36,055,979
Invesco Small Cap Growth Portfolio (Class A)		20,900,828		—		10,737,421
Jennison Growth Portfolio (Class A)		65,783,511		1,551,269		25,634,657
JPMorgan Core Bond Portfolio (Class A)		—		18,624,261		57,342,575
JPMorgan Small Cap Value Portfolio (Class A)		5,876,866		1,341,828		5,783,488
Loomis Sayles Small Cap Growth Portfolio (Class A)		9,080,692		—		4,160,073
MFS Research International Portfolio (Class A)		—		5,930,885		21,702,709
MFS Value Portfolio (Class A)		48,338,464		11,511,433		46,174,221
MFS Value Portfolio II (Class A)		28,245,876		3,397,231		—
Neuberger Berman Genesis Portfolio (Class A)		12,835,283		367,876		4,563,934
Oppenheimer Global Equity Portfolio (Class A)		12,778,149		1,691,989		5,571,250
PIMCO Inflation Protected Bond Portfolio (Class A)		—		7,591,507		39,557,945
PIMCO Total Return Portfolio (Class A)		—		13,171,140		66,950,653
T. Rowe Price Large Cap Growth Portfolio (Class A)		68,012,467		1,595,682		15,479,175
T. Rowe Price Large Cap Value Portfolio (Class A)		59,430,562		12,747,945		18,278,006
T. Rowe Price Mid Cap Growth Portfolio (Class A)		13,793,432		—		8,633,481
T. Rowe Price Small Cap Growth Portfolio (Class A)		16,995,061		247,114		7,789,260
TCW Core Fixed Income Portfolio (Class A)		—		19,254,308		69,103,821
Van Eck Global Natural Resources Portfolio (Class A)		—		654,635		37,935,992
Wells Capital Management Mid Cap Value Portfolio (Class A)		2,990,185		429,560		2,898,314
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		—		14,704,493		19,803,905
Western Asset Management U.S. Government Portfolio (Class A)		—		12,851,543		44,293,605
	$	597,468,006	$	248,161,788

BHFTII-12

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	12,470,061,426
Gross unrealized appreciation		153,594,368
Gross unrealized depreciation		(721,846,902	)
Net unrealized appreciation (depreciation)	$	(568,252,534	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$224,544,990	$	250,142,858	$	520,855,994	$	572,489,486	$	745,400,984	$	822,632,344

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$240,895,972	$	990,385,737	$	(568,252,534	)	$	—	$	663,029,175

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Asset Allocation Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-13

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse Asset Allocation 60 Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 60 Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 60 Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-14

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-15

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-16

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-17

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Board of Trustees’ Consideration of Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with Brighthouse Investment Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser, and aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Agreement, each of which was prepared by the Adviser specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the “Asset Allocation Portfolios”) and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the “American Funds of Funds”). The Board considered the Adviser’s services as investment manager to the Portfolios, including its trading practices and oversight of transition management (as applicable), compliance program and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Agreement on aPortfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Portfolios, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

BHFTII-19

Brighthouse Funds Trust II

Brighthouse Asset Allocation 60 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse Asset Allocation 60 Portfolio.The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for theone-, three-, and five-year periods ended June 30, 2018. The Board also considered that the Portfolio outperformed the average of its Morningstar category for theone-year period ended June 30, 2018, and underperformed the average of its Morningstar category for the three-year and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed the Brighthouse AA 60 Narrow Index for theone-, three- and five-year periods ended September 30, 2018. The Board also noted that the Portfolio outperformed the Dow Jones Moderate Index for the three-year and five-year periods ended September 30, 2018, but underperformed for theone-year period ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median and below the Expense Universe median. The Board considered that the Portfolio’s total expenses (exclusive of12b-l fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds at the Portfolio’s current size.

BHFTII-20

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*

PERFORMANCE

For theone-year period ended December 31, 2018, the Class A and B shares of the Brighthouse Asset Allocation 80 Portfolio returned-7.91% and-8.11%, respectively. The Portfolio’s benchmark, the Dow Jones Moderately Aggressive Index¹, returned-7.33%.

MARKET ENVIRONMENT/CONDITIONS

After a great 2017 withrecord-low volatility and the strongest January stock market since 1997, investors got shaken back to reality in February when equity markets took a dive following higher-than-expected wage growth. The concern was that this would lead to higher inflation followed by additional Federal Reserve (the “Fed”) interest rate hikes, leading to an unceremonious end to the second-longest economic expansion on record. However, inflation fears soon after fizzled (at least until the end of 2018) and the Fed stayed the course, despite the Tax Cuts and Jobs Act of 2017 providing a noteworthy lift to gross domestic product (“GDP”) growth. GDP growth, incidentally, is on track to reach the highest annual level since before the2008-09 recession. However, an escalating trade war between the U.S. and many of its major trading partners sent another wave of anxiety toward the market, which responded by pulling back sharply once again.

The beginning of the year turned out to be a microcosm of the remainder of 2018. This point in the economic cycle finds many market participants scrambling for indications that the expansion will end. As such, equity markets have become irrationally sensitive to individual data points, both positive and negative, with little regard to their historic predictive power on market results. The consequence was elevated market volatility in the second quarter, driven by positive economic growth and an accommodative Fed on one side, and on the other side by negative trade war and housing market news. In the third quarter, however, equity markets rebounded as corporate profits hit a newall-time high, GDP growth for second quarter came in at 4.2%, and unemployment dropped to 3.7%—the lowest number since 1969. The result in the third quarter was the best quarterly return for the S&P 500 Index since 2013.

As we got to the fourth quarter though, sentiment turned significantly worse, and the S&P 500 Index did an about-face, delivering its worst quarterly return since 2011. Gone was the sense of confidence that the strong economy could propel equity markets ever higher. Front and center were concerns about the continued trade war escalation,mid-term election uncertainty, a housing market dampened by rising interest rates and lofty prices, and a Fed that was now deemed too hawkish by projecting two additional rate hikes in 2019, despite having raised rates 4 times in 2018 (from a target range of1.25%-1.50% to a target range of2.25%-2.5%) and despite the market volatility.

News from overseas did little to attenuate concerns on the home front. Troubling to many is the ongoing Brexit (United Kingdom’s decision to withdraw from the European Union) situation, as leaders in the U.K. struggle to agree on a deal ensuring an orderly exit from the E.U.—an exit which is scheduled to occur on March 29, 2019. Highlighting the extent of disagreement are the two votes of confidence in Prime Minister Theresa May’s leadership, held in December 2018 and January 2019, both of which she won (in the U.K., a vote of confidence is a procedure used to remove a prime minister from office). Concerns about slowing growth in China have been receiving headlines as well. Leadership in China is in the middle of a long-term plan which is designed to transition the country from a manufacturing-driven economy to a service-driven economy. More worrisome to market participants is the fact that China is also in the process of dealing with an increasingly large debt burden as that plan unfolds. The outcome of both is unclear, which has led to some increased market volatility. However, it was confidence-inspiring that China had enough wherewithal to take the foot off the brake when it saw its economic growth rates declining faster than intended.

All in all, 2018 was a difficult year for investors. The economy is growing at a healthy pace, but the main question is for how long? The uncertainty caused all the major asset classes to be down for the year except for core bonds, which managed to creep in to positive territory, barely eking out a positive return with 0.01% for the year (as measured by the Bloomberg Barclays U.S. Aggregate Bond Index). International equities were generally the worst-performing asset classes with Emerging Markets equity and Foreign Developed equity down 14.6% and 13.8% respectively, as measured by the MSCI Emerging Markets Index and the MSCI EAFE Index. U.S. Large Cap equity did significantly better but was still down 4.4% for the year as measured by the S&P 500 Index, whereas Mid Cap equity lost 9.1% and Small Cap equity lost 11.0% for the year, as measured by the Russell Mid Cap and the Russell 2000 indices, in that order.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Brighthouse Asset Allocation 80 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 80% to equities and 20% to fixed income. Over the twelve-month period, the Portfolio fell short of the Dow Jones Moderately Aggressive Index. Strong performance within the Mid and Small Cap portfolios and a favorable overweight to Large Cap equity was insufficient to attenuate the combination of underperformance within Large Cap and International equity—both detractors.

The overall contribution from the underlying fixed income portfolios to relative performance was flat in 2018. The biggest contributor by far to performance was the Brighthouse/Templeton International Bond Portfolio, which outpaced its benchmark by 3.1%. The strategy’s relative outperformance during the period was primarily attributable to currency positions, notably, the portfolio’s underweight position in the euro and the Australian dollar. Outside of currency exposure, short duration positioning in the U.S. helped returns as well. The Brighthouse/Eaton Vance Floating Rate Portfolio outperformed its benchmark by 0.1%. The portfolio’s underweight to

BHFTII-1

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Managed by Brighthouse Investment Advisers, LLC

Portfolio Manager Commentary*—(Continued)

defaulted loans aided performance relative to its benchmark over the year, as did favorable security selection in Financial Services and Energy. At the other end of the spectrum was the Western Asset Management Strategic Bond Opportunities Portfolio, which lagged its benchmark by 3.8%. Portfolio performance was negatively impacted by its U.S. duration and yield curve positioning, as well as currency and emerging markets positions. During the year, corporate credit spreads widened and experienced heightened levels of volatility. As such, the portfolio’s investment grade corporate credit positions were also negative contributors to performance. Also detracting in fixed income was the Brighthouse/Franklin Low Duration Total Return Portfolio, which underperformed its benchmark by 0.9%, largely driven by Collateralized Loan Obligation positions.

Contribution from the underlying domestic equity portfolios to relative performance was flat, as the Mid Cap and Small Cap equity portfolios made up for the underperformance by the Large Cap equity portfolios. Within Large Cap, the Brighthouse/Wellington Core Equity Opportunities Portfolio had a strong year, as it outperformed its benchmark by 4.7%. Strong security selection within Consumer Discretionary, Consumer Staples, and Materials sectors helped. The ClearBridge Aggressive Growth Portfolio, on the other hand, experienced considerable underperformance in 2018, falling shy of its benchmark by 4.7% for the period. The underperformance was driven by an unfavorable overweight to Energy, in addition to suboptimal security selection within Information Technology, Consumer Discretionary, and Industrials. Another laggard for the period was the Invesco Comstock Portfolio, which underperformed its benchmark by 3.7% for the year. The result was primarily due to an overweight to Energy and unfavorable security selection within Financial Services, Healthcare, and Energy. Within Mid Cap equity, the Morgan Stanley Mid Cap Growth Portfolio significantly outperformed its benchmark by 15.2%, largely due to favorable security selection and, to a lesser extent, sector allocations. Positive security selection in Health Care, Technology, and Communication Services drove a majority of the portfolio’s relative outperformance. Within Small Cap equity, four out of six managers outperformed their respective benchmarks. The strongest performer was the Loomis Sayles Small Cap Growth Portfolio, which outperformed its benchmark by 9.9% in 2018. The portfolio benefitted significantly from strong security selection within Healthcare, Technology, and Consumer Discretionary. In addition, the Neuberger Berman Genesis Portfolio outperformed its benchmark by 6.2% in 2018 as the portfolio’s focus on higher-quality companies with higher return on equity paid off. Security selection in Healthcare, Consumer Staples, and Information Technology made the largest positive impact on relative results.

Non-U.S. equity was a headwind to relative performance in 2018. Most notably, the Harris Oakmark International Portfolio underperformed its benchmark by 9.9% during the year as security selection and country weightings caused returns to suffer. Performance compared to the benchmark was hurt by holdings in the U.K., Germany, and France as well as suboptimal security selection in Consumer Discretionary, Financial Services, and Industrials. The Van Eck Global Natural Resources Portfolio underperformed its benchmark by 7.6% for the year. The underperformance was primarily driven by overweight positions and underperformance in the Oil & Gas Exploration and Oil & Gas Drillingsub-industries. The best performance in the category came from the Brighthouse/Artisan International Portfolio, which outperformed its benchmark by 3.5% in 2018. Much of the outperformance was a result of strong security selection within Technology, Materials, and Consumer Discretionary. In addition, the Brighthouse/Aberdeen Emerging Market Equity Portfolio was additive to relative results during the year, outperforming its benchmark by 0.7% as an underweight to China and positive security selection in Consumer Discretionary, Financial Services, and Technology supported returns.

Investment Committee

Brighthouse Investment Advisers, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY AGGRESSIVE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Brighthouse Asset Allocation 80 Portfolio
Class A		-7.91		4.39		9.87
Class B		-8.11		4.14		9.61
Dow Jones Moderately Aggressive Index		-7.33		4.62		9.91

¹ The Dow Jones Moderately Aggressive Index is a total return index designed to provide asset allocation strategists with a target risk benchmark. Each month, the Index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) such that the risk combination will have 80% of the risk of an all equity portfolio.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
MFS Value Portfolio (Class A)		6.0
Invesco Comstock Portfolio (Class A)		5.4
T. Rowe Price Large Cap Value Portfolio (Class A)		5.2
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		5.1
Jennison Growth Portfolio (Class A)		5.0
Harris Oakmark International Portfolio (Class A)		4.5
ClearBridge Aggressive Growth Portfolio (Class A)		4.4
T. Rowe Price Large Cap Growth Portfolio (Class A)		4.3
Baillie Gifford International Stock Portfolio (Class A)		4.2
Brighthouse/Artisan International Portfolio (Class A)		3.8

Asset Allocation

	% of Net Assets
U.S. Large Cap Equities		42.3
International Developed Market Equities		17.4
Investment Grade Fixed Income		12.9
U.S. Small Cap Equities		8.0
Global Equities		4.4
High Yield Fixed Income		3.6
International Fixed Income		3.2
U.S. Mid Cap Equities		3.0
Emerging Market Equities		2.6
Real Estate Equities		2.6

BHFTII-3

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Brighthouse Asset Allocation 80 Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.69	%	$	1,000.00	$	908.20	$	3.32
	Hypothetical*		0.69	%	$	1,000.00	$	1,021.73	$	3.52
Class B (a)	Actual		0.94	%	$	1,000.00	$	907.70	$	4.52
	Hypothetical*		0.94	%	$	1,000.00	$	1,020.47	$	4.79

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

BHFTII-4

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Schedule of Investments as of December 31, 2018

Mutual Funds—100.0% of Net Assets

Security Description	Shares		Value
Affiliated Investment Companies—100.0%
Baillie Gifford International Stock Portfolio (Class A) (a)		35,703,656	$	393,454,288
BlackRock Bond Income Portfolio (Class A) (a)		2,951,469		303,824,270
BlackRock Capital Appreciation Portfolio (Class A) (a)		7,884,701		306,162,925
BlackRock High Yield Portfolio (Class A) (b)		6,749,921		48,936,926
Brighthouse Small Cap Value Portfolio (Class A) (b)		11,509,766		155,842,236
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A) (b)		26,022,453		248,254,199
Brighthouse/Artisan International Portfolio (Class A) (b)		35,712,259		353,551,365
Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (a)		108,280		22,939,023
Brighthouse/Dimensional International Small Company Portfolio (Class A) (a)		16,005,975		177,186,144
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (b)		9,795,366		97,953,659
Brighthouse/Templeton International Bond Portfolio (Class A) (b)(c)		29,317,329		299,329,928
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (a)		15,933,441		478,162,554
Brighthouse/Wellington Large Cap Research Portfolio (Class A) (b)		24,820,708		327,385,142
Clarion Global Real Estate Portfolio (Class A) (b)		22,539,219		241,620,426
ClearBridge Aggressive Growth Portfolio (Class A) (b)		25,634,507		416,817,092
Frontier Mid Cap Growth Portfolio (Class A) (a)		1,451,955		47,115,951
Harris Oakmark International Portfolio (Class A) (b)		34,938,091		424,847,183
Invesco Comstock Portfolio (Class A) (b)		38,104,207		505,261,790
Invesco Small Cap Growth Portfolio (Class A) (b)		15,853,191		198,481,951
Jennison Growth Portfolio (Class A) (a)		32,423,024		470,133,848
JPMorgan Core Bond Portfolio (Class A) (b)		20,264,620		203,051,494
JPMorgan Small Cap Value Portfolio (Class A) (b)		9,430,647		133,537,968
Loomis Sayles Small Cap Growth Portfolio (Class A) (a)		8,545,252		112,711,869
MFS Research International Portfolio (Class A) (b)		26,459,648		285,499,601
Affiliated Investment Companies—(Continued)
MFS Value Portfolio (Class A) (a)		40,686,461		561,880,026
Morgan Stanley Mid Cap Growth Portfolio (Class A) (b)		1,240,626		23,038,433
Neuberger Berman Genesis Portfolio (Class A) (a)		1,241,064		23,034,144
Oppenheimer Global Equity Portfolio (Class A) (b)		6,821,623		139,502,183
PIMCO Inflation Protected Bond Portfolio (Class A) (b)		15,731,285		150,548,399
PIMCO Total Return Portfolio (Class A) (b)		26,626,485		303,275,663
T. Rowe Price Large Cap Growth Portfolio (Class A) (a)		19,425,989		402,312,232
T. Rowe Price Large Cap Value Portfolio (Class A) (b)		17,211,536		492,938,379
T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)		9,305,885		94,826,970
T. Rowe Price Small Cap Growth Portfolio (Class A) (a)		6,387,864		135,614,362
TCW Core Fixed Income Portfolio (Class A) (b)		25,437,339		253,864,643
Van Eck Global Natural Resources Portfolio (Class A) (a)		35,632,729		273,659,357
Wells Capital Management Mid Cap Value Portfolio (Class A) (b)		9,380,156		93,426,350
Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)		15,746,602		199,666,910
Total Mutual Funds (Cost $9,738,074,084)				9,399,649,883
Total Investments—100.0% (Cost $9,738,074,084)				9,399,649,883
Other assets and liabilities (net)—0.0%				(2,646,504	)
Net Assets — 100.0%			$	9,397,003,379

(a)	A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b)	A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c)	Non-income producing security.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Mutual Funds
Affiliated Investment Companies	$	9,399,649,883	$	—	$	—	$	9,399,649,883
Total Investments	$	9,399,649,883	$	—	$	—	$	9,399,649,883

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Affiliated investments at value (a)	$	9,399,649,883
Receivable for:
Affiliated investments sold		3,383,790
Fund shares sold		275,535
Total Assets		9,403,309,208
Liabilities
Payables for:
Fund shares redeemed		3,659,325
Accrued Expenses:
Management fees		440,970
Distribution and service fees		1,963,600
Deferred trustees’ fees		182,726
Other expenses		59,208
Total Liabilities		6,305,829
Net Assets	$	9,397,003,379
Net Assets Consist of:
Paid in surplus	$	8,629,693,032
Distributable earnings (Accumulated losses)		767,310,347
Net Assets	$	9,397,003,379
Net Assets
Class A	$	378,178,302
Class B		9,018,825,077
Capital Shares Outstanding*
Class A		30,592,928
Class B		733,504,872
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	12.36
Class B		12.30

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of affiliated investments was $9,738,074,084.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends from affiliated investments	$	171,940,686
Total investment income		171,940,686
Expenses
Management fees		5,869,194
Administration fees		26,349
Custodian and accounting fees		28,054
Distribution and service fees—Class B		26,400,831
Audit and tax services		32,223
Legal		45,317
Trustees’ fees and expenses		33,734
Miscellaneous		16,348
Total expenses		32,452,050
Net Investment Income		139,488,636
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Affiliated investments		412,768,168
Capital gain distributions from affiliated investments		659,739,787
Net realized gain		1,072,507,955
Net change in unrealized depreciation on affiliated investments		(2,026,791,738	)
Net realized and unrealized loss		(954,283,783	)
Net Decrease in Net Assets From Operations	$	(814,795,147	)

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Statements of Changes in Net Assets

							Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income							$	139,488,636		$	133,191,348
Net realized gain								1,072,507,955			540,074,337
Net change in unrealized appreciation (depreciation)								(2,026,791,738	)		1,300,448,131
Increase (decrease) in net assets from operations								(814,795,147	)		1,973,713,816
From Distributions to Shareholders (a)
Class A								(25,505,012	)		(30,355,844	)
Class B								(608,846,005	)		(761,245,249	)
Total distributions								(634,351,017	)		(791,601,093	)
Decrease in net assets from capital share transactions								(709,937,897	)		(484,248,915	)
Total increase (decrease) in net assets								(2,159,084,061	)		697,863,808
Net Assets
Beginning of period								11,556,087,440			10,858,223,632
End of period							$	9,397,003,379		$	11,556,087,440	(b)
Other Information: Capital Shares Transactions in capital shares were as follows:
	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,097,538		$	15,311,141			1,308,539		$	17,709,267
Reinvestments		1,837,537			25,505,012			2,331,478			30,355,844
Redemptions		(2,970,353	)		(41,468,195	)		(3,985,253	)		(53,924,034	)
Net decrease		(35,278	)	$	(652,042	)		(345,236	)	$	(5,858,923	)
Class B
Sales		7,738,944		$	107,874,422			8,340,811		$	112,523,526
Reinvestments		44,055,427			608,846,005			58,692,772			761,245,249
Redemptions		(102,741,883	)		(1,426,006,282	)		(100,029,010	)		(1,352,158,767	)
Net decrease		(50,947,512	)	$	(709,285,855	)		(32,995,427	)	$	(478,389,992	)
Decrease derived from capital shares transactions				$	(709,937,897	)				$	(484,248,915	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December��31, 2018 has been adjusted for this change
(See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(7,454,246	)	$	(22,901,598	)
Class B		(167,613,633	)		(593,631,616	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $144,248,984 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.25		$	12.86		$	13.98		$	14.92		$	14.41
Income (Loss) from Investment Operations
Net investment income (a)		0.21			0.19			0.20			0.29			0.18
Net realized and unrealized gain (loss)		(1.25	)		2.22			0.82			(0.47	)		0.60
Total income (loss) from investment operations		(1.04	)		2.41			1.02			(0.18	)		0.78
Less Distributions
Distributions from net investment income		(0.22	)		(0.25	)		(0.46	)		(0.08	)		(0.27	)
Distributions from net realized capital gains		(0.63	)		(0.77	)		(1.68	)		(0.68	)		0.00
Total distributions		(0.85	)		(1.02	)		(2.14	)		(0.76	)		(0.27	)
Net Asset Value, End of Period	$	12.36		$	14.25		$	12.86		$	13.98		$	14.92
Total Return (%)(b)		(7.91	)		19.44			8.43			(1.50	)		5.53
Ratios/Supplemental Data
Ratio of expenses to average net assets (%) (c)		0.06			0.06			0.06			0.05			0.06
Ratio of net investment income to average net assets (%) (d)		1.50			1.42			1.55			1.96			1.26
Portfolio turnover rate (%)		11			7			10			13			22
Net assets, end of period (in millions)	$	378.2		$	436.4		$	398.2		$	386.4		$	395.4
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.18		$	12.80		$	13.92		$	14.86		$	14.36
Income (Loss) from Investment Operations
Net investment income (a)		0.17			0.16			0.17			0.25			0.02
Net realized and unrealized gain (loss)		(1.23	)		2.21			0.81			(0.46	)		0.72
Total income (loss) from investment operations		(1.06	)		2.37			0.98			(0.21	)		0.74
Less Distributions
Distributions from net investment income		(0.19	)		(0.22	)		(0.42	)		(0.05	)		(0.24	)
Distributions from net realized capital gains		(0.63	)		(0.77	)		(1.68	)		(0.68	)		0.00
Total distributions		(0.82	)		(0.99	)		(2.10	)		(0.73	)		(0.24	)
Net Asset Value, End of Period	$	12.30		$	14.18		$	12.80		$	13.92		$	14.86
Total Return (%)(b)		(8.11	)		19.16			8.14			(1.70	)		5.23
Ratios/Supplemental Data
Ratio of expenses to average net assets (%) (c)		0.31			0.31			0.31			0.30			0.31
Ratio of net investment income to average net assets (%) (d)		1.26			1.17			1.32			1.73			0.14
Portfolio turnover rate (%)		11			7			10			13			22
Net assets, end of period (in millions)	$	9,018.8		$	11,119.7		$	10,460.0		$	10,742.1		$	12,034.0

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.
(d)	Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 80 Portfolio (the “Asset Allocation Portfolio”), which is diversified. The Asset Allocation Portfolio operates under a “fund of funds” structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an “Underlying Portfolio,” and, collectively, the “Underlying Portfolios”). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Asset Allocation Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Asset Allocation Portfolio represent an equal pro rata interest in the Asset Allocation Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Asset Allocation Portfolio, and certain Asset Allocation Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Asset Allocation Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Asset Allocation Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Asset Allocation Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements -The Asset Allocation Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Asset Allocation Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Asset Allocation Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income -The Asset Allocation Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

Dividends and Distributions to Shareholders -The Asset Allocation Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Asset Allocation Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Asset Allocation Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Asset Allocation Portfolio’s federal tax returns for the

BHFTII-9

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

3. Certain Risks

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

The Asset Allocation Portfolio’s prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	1,174,207,328	$	0	$	1,719,739,281

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Asset Allocation Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Asset Allocation Portfolio. For providing investment management services to the Asset Allocation Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$5,869,194		0.100	%	Of the first $500 million
		0.075	%	Of the next $500 million
		0.050	%	On amounts in excess of $1 billion

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers however, such officers and trustees receive no compensation from the Trust.

BHFTII-10

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2018 were as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/ (Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	410,609,221	$	84,689,257	$	(18,603,501	)	$	6,980,195		$	(90,220,884	)	$	393,454,288
BlackRock Bond Income Portfolio (Class A)		330,107,343		23,486,484		(36,915,510	)		(1,477,192	)		(11,376,855	)		303,824,270
BlackRock Capital Appreciation Portfolio (Class A)		407,888,711		49,400,677		(122,267,326	)		45,334,365			(74,193,502	)		306,162,925
BlackRock High Yield Portfolio (Class A)		57,763,657		2,871,105		(7,583,089	)		(623,262	)		(3,491,485	)		48,936,926
Brighthouse Small Cap Value Portfolio (Class A)		174,761,477		31,488,650		(10,590,828	)		516,465			(40,333,528	)		155,842,236
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		294,797,711		23,764,306		(24,320,493	)		859,725			(46,847,050	)		248,254,199
Brighthouse/Artisan International Portfolio (Class A)		378,601,301		46,068,318		(23,007,603	)		3,198,180			(51,308,831	)		353,551,365
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		58,431,188		1,679,513		(31,874,010	)		3,686,096			(8,983,764	)		22,939,023
Brighthouse/Dimensional International Small Company Portfolio (Class A)		236,218,700		21,094,018		(14,123,854	)		(592,120	)		(65,410,600	)		177,186,144
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		112,502,683		4,738,341		(16,017,768	)		33,054			(3,302,651	)		97,953,659
Brighthouse/Templeton International Bond Portfolio (Class A)		326,689,528		8,811,373		(40,490,462	)		918,977			3,400,512			299,329,928
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		583,694,106		40,327,101		(110,457,932	)		35,737,989			(71,138,710	)		478,162,554
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		407,853,287		49,962,980		(62,543,724	)		10,600,727			(78,488,128	)		327,385,142
Clarion Global Real Estate Portfolio (Class A)		290,264,070		17,191,840		(25,677,035	)		10,963,212			(51,121,661	)		241,620,426
ClearBridge Aggressive Growth Portfolio (Class A)		554,033,443		27,836,789		(113,855,757	)		63,261,216			(114,458,599	)		416,817,092
Frontier Mid Cap Growth Portfolio (Class A)		58,104,366		6,151,552		(8,697,039	)		1,827,060			(10,269,988	)		47,115,951
Harris Oakmark International Portfolio (Class A)		496,293,756		104,503,246		(22,589,150	)		3,925,933			(157,286,602	)		424,847,183
Invesco Comstock Portfolio (Class A)		672,572,984		51,650,872		(101,657,159	)		36,744,214			(154,049,121	)		505,261,790
Invesco Small Cap Growth Portfolio (Class A)		291,587,838		31,204,035		(80,461,717	)		(4,693,274	)		(39,154,931	)		198,481,951
Jennison Growth Portfolio (Class A)		579,196,578		84,369,517		(123,778,476	)		42,297,737			(111,951,508	)		470,133,848
JPMorgan Core Bond Portfolio (Class A)		218,544,630		16,897,324		(26,070,905	)		(690,964	)		(5,628,591	)		203,051,494
JPMorgan Small Cap Value Portfolio (Class A)		173,501,338		11,875,816		(19,582,770	)		2,262,923			(34,519,339	)		133,537,968
Loomis Sayles Small Cap Growth Portfolio (Class A)		145,483,558		18,757,005		(37,975,045	)		11,600,506			(25,154,155	)		112,711,869
MFS Research International Portfolio (Class A)		352,313,230		7,186,292		(21,203,766	)		6,112,378			(58,908,533	)		285,499,601
MFS Value Portfolio (Class A)		642,347,528		52,979,851		(103,721,330	)		38,911,549			(68,637,572	)		561,880,026
MFS Value Portfolio II (Class A)		87,604,656		25,430,566		(1,268,510	)		46,758			(111,813,470	)		—
Morgan Stanley Mid Cap Growth Portfolio (Class A)		58,060,082		5,406,092		(43,122,358	)		18,684,135			(15,989,518	)		23,038,433

BHFTII-11

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
Neuberger Berman Genesis Portfolio (Class A)	$	58,398,260	$	3,643,786	$	(34,814,464	)	$	13,178,484		$	(17,371,922	)	$	23,034,144
Oppenheimer Global Equity Portfolio (Class A)		175,049,998		17,635,552		(15,466,335	)		3,809,958			(41,526,990	)		139,502,183
PIMCO Inflation Protected Bond Portfolio (Class A)		165,112,441		9,094,091		(17,031,028	)		(2,850,379	)		(3,776,726	)		150,548,399
PIMCO Total Return Portfolio (Class A)		331,926,225		16,285,920		(39,414,975	)		(3,991,889	)		(1,529,618	)		303,275,663
T. Rowe Price Large Cap Growth Portfolio (Class A)		520,862,703		88,469,844		(125,583,605	)		37,369,645			(118,806,355	)		402,312,232
T. Rowe Price Large Cap Value Portfolio (Class A)		639,434,904		68,620,373		(98,900,803	)		29,270,973			(145,487,068	)		492,938,379
T. Rowe Price Mid Cap Growth Portfolio (Class A)		116,420,330		14,787,802		(21,067,387	)		2,995,819			(18,309,594	)		94,826,970
T. Rowe Price Small Cap Growth Portfolio (Class A)		175,319,282		14,102,862		(32,834,956	)		6,008,367			(26,981,193	)		135,614,362
TCW Core Fixed Income Portfolio (Class A)		272,970,061		20,207,645		(32,427,081	)		(496,333	)		(6,389,649	)		253,864,643
Van Eck Global Natural Resources Portfolio (Class A)		357,886,888		48,633,307		(23,282,124	)		(3,044,509	)		(106,534,205	)		273,659,357
Wells Capital Management Mid Cap Value Portfolio (Class A)		117,041,723		11,014,853		(9,508,020	)		(3,142,799	)		(21,979,407	)		93,426,350
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		228,955,621		11,888,373		(20,951,386	)		(2,765,751	)		(17,459,947	)		199,666,910
	$	11,559,205,406	$	1,174,207,328	$	(1,719,739,281	)	$	412,768,168		$	(2,026,791,738	)	$	9,399,649,883

Security Description	Capital Gain Distributions		Income earned from affiliates during the period		Number of shares held at December 31, 2018
Baillie Gifford International Stock Portfolio (Class A)	$	—	$	5,107,040		35,703,656
BlackRock Bond Income Portfolio (Class A)		—		11,208,671		2,951,469
BlackRock Capital Appreciation Portfolio (Class A)		48,921,161		461,593		7,884,701
BlackRock High Yield Portfolio (Class A)		—		2,850,753		6,749,921
Brighthouse Small Cap Value Portfolio (Class A)		10,053,255		2,406,189		11,509,766
Brighthouse/Aberdeen Emerging Markets Equity Portfolio (Class A)		—		7,492,278		26,022,453
Brighthouse/Artisan International Portfolio (Class A)		—		5,799,989		35,712,259
Brighthouse/Artisan Mid Cap Value Portfolio (Class A)		1,500,487		177,694		108,280
Brighthouse/Dimensional International Small Company Portfolio (Class A)		14,995,384		5,835,571		16,005,975
Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)		—		4,278,931		9,795,366
Brighthouse/Templeton International Bond Portfolio (Class A)		—		—		29,317,329
Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)		30,331,348		9,995,753		15,933,441
Brighthouse/Wellington Large Cap Research Portfolio (Class A)		45,825,433		4,130,811		24,820,708
Clarion Global Real Estate Portfolio (Class A)		—		17,025,353		22,539,219
ClearBridge Aggressive Growth Portfolio (Class A)		23,592,567		4,184,036		25,634,507
Frontier Mid Cap Growth Portfolio (Class A)		6,150,646		—		1,451,955
Harris Oakmark International Portfolio (Class A)		19,126,116		9,103,438		34,938,091
Invesco Comstock Portfolio (Class A)		46,179,286		5,446,206		38,104,207
Invesco Small Cap Growth Portfolio (Class A)		31,098,676		—		15,853,191
Jennison Growth Portfolio (Class A)		82,388,015		1,942,827		32,423,024
JPMorgan Core Bond Portfolio (Class A)		—		6,601,198		20,264,620
JPMorgan Small Cap Value Portfolio (Class A)		9,635,723		2,200,064		9,430,647
Loomis Sayles Small Cap Growth Portfolio (Class A)		18,741,441		—		8,545,252
MFS Research International Portfolio (Class A)		—		7,156,917		26,459,648
MFS Value Portfolio (Class A)		42,780,685		10,187,890		40,686,461
MFS Value Portfolio II (Class A)		22,698,981		2,730,087		—
Morgan Stanley Mid Cap Growth Portfolio (Class A)		5,399,803		—		1,240,626
Neuberger Berman Genesis Portfolio (Class A)		3,541,437		101,502		1,241,064
Oppenheimer Global Equity Portfolio (Class A)		15,556,508		2,059,879		6,821,623
PIMCO Inflation Protected Bond Portfolio (Class A)		—		3,038,065		15,731,285
PIMCO Total Return Portfolio (Class A)		—		5,245,469		26,626,485
T. Rowe Price Large Cap Growth Portfolio (Class A)		86,427,935		2,027,739		19,425,989
T. Rowe Price Large Cap Value Portfolio (Class A)		56,494,641		12,118,186		17,211,536
T. Rowe Price Mid Cap Growth Portfolio (Class A)		14,786,453		—		9,305,885
T. Rowe Price Small Cap Growth Portfolio (Class A)		13,884,648		201,887		6,387,864
TCW Core Fixed Income Portfolio (Class A)		—		7,107,351		25,437,339
Van Eck Global Natural Resources Portfolio (Class A)		—		615,279		35,632,729
Wells Capital Management Mid Cap Value Portfolio (Class A)		9,629,158		1,383,293		9,380,156
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)		—		11,718,747		15,746,602
	$	659,739,787	$	171,940,686

BHFTII-12

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	9,823,785,812
Gross unrealized appreciation		243,646,413
Gross unrealized depreciation		(667,782,342	)
Net unrealized appreciation (depreciation)	$	(424,135,929	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$144,740,754	$	175,067,879	$	489,610,263	$	616,533,214	$	634,351,017	$	791,601,093

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses		Total
$176,563,535	$	1,015,075,045	$	(424,135,929	)	$	—	$	767,502,651

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Asset Allocation Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-13

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Brighthouse Asset Allocation 80 Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 80 Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 80 Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-14

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-15

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-16

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-17

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Board of Trustees’ Consideration of Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with Brighthouse Investment Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser, and aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Agreement, each of which was prepared by the Adviser specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the “Asset Allocation Portfolios”) and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the “American Funds of Funds”). The Board considered the Adviser’s services as investment manager to the Portfolios, including its trading practices and oversight of transition management (as applicable), compliance program and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-18

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Agreement on aPortfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Portfolios, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

BHFTII-19

Brighthouse Funds Trust II

Brighthouse Asset Allocation 80 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Brighthouse Asset Allocation 80 Portfolio.The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed the Brighthouse AA 80 Narrow Index for theone-, three- and five-year periods ended September 30, 2018. The Board also took into account that the Portfolio outperformed the Dow Jones Moderately Aggressive Index for the three-year and five-year periods ended September 30, 2018, and underperformed for theone-year period ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median and below the Expense Universe median. The Board also considered that the Portfolio’s total expenses (exclusive of12b-l fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds at the Portfolio’s current size.

BHFTII-20

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Managed by Frontier Capital Management Company, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, D, and E shares of the Frontier Mid Cap Growth Portfolio returned-5.64%,-5.90%,-5.76%, and-5.79%, respectively. The Portfolio’s benchmark, the Russell Midcap Growth Index¹, returned-4.75%.

MARKET ENVIRONMENT / CONDITIONS

2018 was a tale of two markets with divergent trends. During the first three quarters of the year, gains in the market were driven by robust corporate earnings, elevated mergers & acquisition activity and increased capital returns in the form of buybacks. However, beneath the surface of higher index levels, performance was less uniform. Growth significantly outperformed value as concern about the impact of higher interest rates and the prospect of economic growth peaking led investors to crowd into a narrow group of rapidly growing companies perceived to be immune from economic weakness. Increased trade tensions further exacerbated this trend as investors continued to favor domestic high growth companies that were already trading at historically high valuations, regardless of whether these companies were profitable.

After three positive quarters, the year concluded with equities experiencing the most substantial quarterly decline since the global financial crisis in 2008. The Russell MidcapGrowth Index fell 16% as multiples collapsed in the fourth quarter by the largest amount since 2002. All this occurred despite 2018 S&P 500 Index earnings rising over an estimated 20%. Indeed, the year will be remembered as one where booming earnings growth was offset by a busting of P/E multiples. The sharp correction in valuations reflected concerns the economic cycle was approaching a recession based on headline risks including slowing global growth, tightening monetary policy, swelling fiscal deficits, declining earnings momentum and ongoing political disruption to trade.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

During the one-year period, the Portfolio underperformed the Russell Midcap Growth Index. Relative underperformance was the result of negative sector allocation, which more than offset positive stock selection over the period. The Portfolio’s overweight positions within the Materials and Financials sectors, as well as an underweight in the Consumer Staples sector hindered relative results.

The Portfolio’s largest contributors to stock selection occurred in Health Care and Consumer Discretionary, while the largest detractors occurred in Information Technology (“IT”) and Industrials.

In Materials, short term inflationary pressures were a burden to our aggregates companies Vulcan Materials, Martin Marietta Materials, and Eagle Materials. We exited Eagle Materials over the period given concerns we uncovered in their frac sanding business. In addition, specialty agriculture company FMC Corp. came under pressure as trade tensions with China escalated and questions arose over potential oversupply conditions in its lithium business.

In Financials, concern of a flattening yield curve was a headwind to financial services firm Raymond James, bank holding company Webster Financial, and investment banking and advisory firm Evercore. Finally, in Consumer Staples our long-standing investment in energy drink company Monster Beverage Corp. performed poorly as category growth slowed and potential new entrants emerged. The change in the competitive dynamics led us to sell our position during the period.

Within Health Care, the Portfolio’s overweight position and strong stock selection benefited results. The largest contributor was the Portfolio’s investment in the oncology focused biotech company Tesaro, which was acquired for a substantial premium by GlaxoSmithKline late in the year. The Portfolio’s investment in veterinary medicine company Zoetis prospered as it delivered strong and consistent top and bottom line results. Finally, contact specialty company Cooper Companies delivered solid results that continued to surprise the market. In Consumer Discretionary, stock selection was additive to relative performance. Our focus on category retail leaders with limited exposure to Amazon was rewarded as both O’Reilly Automotive and Advanced Auto Parts performed well. Additionally, Yum! Brands was rewarded for its growing recurring franchise fees driven by the global expansion of Kentucky Fried Chicken, Pizza Hut, and Taco Bell.

Negative stock selection in IT was the largest headwind to the Portfolio’s performance during the year. Not owning software company Red Hat was a major drag on performance as it was purchased by IBM for a 60% premium. A position in IT consulting company DXC Technology declined on reported weaker sales in their September quarter, which led to a meaningful pullback for the year. While we believed the decline in its stock price was warranted given its sales miss, we think the magnitude of the decline was excessive for a company with largely recurring revenue streams. Additionally, the Portfolio’s overweight exposure to more economically sensitive semiconductor names such as Marvell Technologies, Qorvo, and Universal Display lagged faster growing, more domestic centric software companies which we were underweight based on valuations. Within Industrials, the Portfolio’s underweight positioning and unfavorable stock selection detracted despite solid performance in uniform rental company Cintas Corp. and waste services company Waste Connections, which helped to offset some of the weak performance in transportation holdings Knight-Swift Transportation and JetBlue Airways, both of which the Portfolio still owned at period end.

We continued to focus on companies that we believed had strong secular appeal, were positioned to gain share in growth markets, and had management led initiatives to support shareholder returns. At period end, the Portfolio’s largest overweights were in the Materials, Health Care, and Financials sectors. Regarding Health Care, we continued to see attractive innovation in medical & dental technology, pharmaceutical, and biotechnology areas. In Financials, we continued to like financial technology companies and investment

BHFTII-1

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Managed by Frontier Capital Management Company, LLC

Portfolio Manager Commentary*—(Continued)

advisory businesses. We remained guarded about valuations for cyclical areas such as Industrials and growth challenged areas such as Consumer Staples, both sectors we remained underweight.

Stephen M. Knightly

Christopher J. Scarpa

Portfolio Managers

Frontier Capital Management Company, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

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Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP GROWTH INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Frontier Mid Cap Growth Portfolio
Class A		-5.64		7.33		13.37
Class B		-5.90		7.06		13.08
Class D		-5.76		7.22		13.25
Class E		-5.79		7.17		13.20
Russell Midcap Growth Index		-4.75		7.42		15.12

¹ The Russell Midcap Growth Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with higher price-to-book ratios and forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Global Payments, Inc.		3.0
O’Reilly Automotive, Inc.		2.8
SS&C Technologies Holdings, Inc.		2.6
Waste Connections, Inc.		2.5
Dollar General Corp.		2.4
Ball Corp.		2.3
Worldpay, Inc. - Class A		2.2
Cooper Cos., Inc. (The)		2.1
Aon plc		2.1
Yum! Brands, Inc.		2.1

Top Sectors

	% of Net Assets
Information Technology		30.5
Consumer Discretionary		19.0
Health Care		17.8
Industrials		10.8
Financials		9.0
Materials		8.7
Energy		1.0
Communication Services		1.0
Real Estate		1.0

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Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Frontier Mid Cap Growth Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.72	%	$	1,000.00	$	908.50	$	3.46
	Hypothetical*		0.72	%	$	1,000.00	$	1,021.58	$	3.67
Class B (a)	Actual		0.97	%	$	1,000.00	$	907.30	$	4.66
	Hypothetical*		0.97	%	$	1,000.00	$	1,020.32	$	4.94
Class D (a)	Actual		0.82	%	$	1,000.00	$	907.80	$	3.94
	Hypothetical*		0.82	%	$	1,000.00	$	1,021.07	$	4.18
Class E (a)	Actual		0.87	%	$	1,000.00	$	907.80	$	4.18
	Hypothetical*		0.87	%	$	1,000.00	$	1,020.82	$	4.43

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

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Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—98.8% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—0.6%
BWX Technologies, Inc. (a)		146,405	$	5,597,063
Airlines—0.9%
JetBlue Airways Corp. (b)		549,666		8,827,636
Banks—1.1%
Webster Financial Corp. (a)		236,153		11,639,981
Biotechnology—4.3%
BioMarin Pharmaceutical, Inc. (b)		197,860		16,847,779
Exact Sciences Corp. (a) (b)		124,682		7,867,434
Incyte Corp. (b)		85,789		5,455,322
Neurocrine Biosciences, Inc. (a) (b)		65,090		4,648,077
Seattle Genetics, Inc. (a) (b)		166,245		9,419,442
				44,238,054
Building Products—0.5%
A.O. Smith Corp.		125,566		5,361,668
Capital Markets—5.8%
Evercore, Inc. - Class A		137,901		9,868,196
LPL Financial Holdings, Inc. (a)		257,089		15,702,996
Moody’s Corp. (a)		53,147		7,442,706
Nasdaq, Inc.		163,163		13,309,206
Raymond James Financial, Inc.		180,303		13,416,346
				59,739,450
Chemicals—3.6%
FMC Corp.		274,006		20,265,484
Sherwin-Williams Co. (The)		42,027		16,535,943
				36,801,427
Commercial Services & Supplies—4.9%
Cintas Corp. (a)		110,916		18,632,779
KAR Auction Services, Inc. (a)		136,640		6,520,461
Waste Connections, Inc.		344,159		25,553,805
				50,707,045
Construction & Engineering—1.0%
KBR, Inc. (a)		664,022		10,079,854
Construction Materials—1.7%
Martin Marietta Materials, Inc. (a)		47,871		8,227,589
Vulcan Materials Co. (a)		96,854		9,569,175
				17,796,764
Containers & Packaging—2.3%
Ball Corp. (a)		511,289		23,509,068
Distributors—1.2%
LKQ Corp. (b)		511,205		12,130,895
Diversified Consumer Services—1.8%
Bright Horizons Family Solutions, Inc. (b)		100,278		11,175,983

Security Description	Shares		Value
Diversified Consumer Services—(Continued)
ServiceMaster Global Holdings, Inc. (b)		184,686	$	6,785,364
				17,961,347
Electrical Equipment—0.7%
Rockwell Automation, Inc.		50,254		7,562,222
Electronic Equipment, Instruments & Components—1.3%
Amphenol Corp. - Class A		168,115		13,620,677
Entertainment—1.0%
Activision Blizzard, Inc.		89,265		4,157,071
Electronic Arts, Inc. (b)		78,971		6,231,602
				10,388,673
Equity Real Estate Investment Trusts—1.0%
SBA Communications Corp. (b)		63,457		10,273,054
Health Care Equipment & Supplies—9.0%
ABIOMED, Inc. (b)		29,878		9,711,545
Align Technology, Inc. (a) (b)		17,840		3,736,231
Cooper Cos., Inc. (The)		86,245		21,949,352
Edwards Lifesciences Corp. (a) (b)		94,222		14,431,984
Insulet Corp. (a) (b)		63,633		5,047,370
Merit Medical Systems, Inc. (b)		103,141		5,756,299
STERIS plc (a)		158,584		16,944,700
Teleflex, Inc.		57,474		14,855,880
				92,433,361
Hotels, Restaurants & Leisure—5.0%
Aramark (a)		202,990		5,880,620
Eldorado Resorts, Inc. (a) (b)		517,836		18,750,842
Texas Roadhouse, Inc. (a)		89,786		5,360,224
Yum! Brands, Inc.		228,905		21,040,948
				51,032,634
Insurance—2.1%
Aon plc		145,655		21,172,411
IT Services—10.6%
DXC Technology Co.		264,513		14,064,156
Gartner, Inc. (a) (b)		52,200		6,673,248
Global Payments, Inc.		301,117		31,054,196
InterXion Holding NV (b)		229,519		12,430,749
Jack Henry & Associates, Inc.		40,234		5,090,406
WEX, Inc. (b)		124,014		17,369,401
Worldpay, Inc. - Class A (a) (b)		294,635		22,518,953
				109,201,109
Life Sciences Tools & Services—4.2%
Illumina, Inc. (a) (b)		18,438		5,530,109
PRA Health Sciences, Inc. (a) (b)		145,256		13,357,742
QIAGEN NV (b)		375,495		12,935,803
Waters Corp. (b)		60,588		11,429,926
				43,253,580

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Metals & Mining—1.1%
Allegheny Technologies, Inc. (a) (b)		525,664	$	11,443,705
Multiline Retail—2.4%
Dollar General Corp. (a)		225,448		24,366,420
Oil, Gas & Consumable Fuels—1.0%
Carrizo Oil & Gas, Inc. (a) (b)		383,467		4,329,342
Concho Resources, Inc. (b)		59,183		6,083,421
				10,412,763
Pharmaceuticals—0.2%
Nektar Therapeutics (a) (b)		70,769		2,326,177
Road & Rail—0.8%
Knight-Swift Transportation Holdings, Inc. (a)		304,588		7,636,021
Semiconductors & Semiconductor Equipment—8.2%
Lam Research Corp.		67,380		9,175,135
Marvell Technology Group, Ltd. (a)		813,437		13,169,545
Monolithic Power Systems, Inc. (a)		51,288		5,962,230
Qorvo, Inc. (a) (b)		272,214		16,531,556
Semtech Corp. (b)		341,565		15,667,587
Universal Display Corp. (a)		89,384		8,363,661
Xilinx, Inc.		173,890		14,810,211
				83,679,925
Software—10.3%
2U, Inc. (a) (b)		101,354		5,039,321
Guidewire Software, Inc. (a) (b)		129,509		10,390,507
Nutanix, Inc. - Class A (a) (b)		290,992		12,102,357
Palo Alto Networks, Inc. (b)		28,809		5,426,175
ServiceNow, Inc. (a) (b)		88,611		15,777,189
Splunk, Inc. (a) (b)		143,993		15,097,666
SS&C Technologies Holdings, Inc.		600,612		27,093,607
Workday, Inc. - Class A (b)		94,658		15,114,990
				106,041,812
Specialty Retail—8.3%
Advance Auto Parts, Inc.		95,158		14,983,579
Burlington Stores, Inc. (b)		58,001		9,435,023
Carvana Co. (a) (b)		131,736		4,309,084
O’Reilly Automotive, Inc. (b)		84,604		29,131,695
Ross Stores, Inc. (a)		165,449		13,765,357
Ulta Salon Cosmetics & Fragrance, Inc. (a) (b)		55,139		13,500,233
				85,124,971
Textiles, Apparel & Luxury Goods—0.4%
Under Armour, Inc. - Class A (a) (b)		243,203		4,297,397
Trading Companies & Distributors—1.5%
Beacon Roofing Supply, Inc. (a) (b)		209,994		6,661,010
HD Supply Holdings, Inc. (b)		223,126		8,371,687
				15,032,697
Total Common Stocks (Cost $925,257,899)				1,013,689,861

Short-Term Investment—1.2%
Security Description	Principal Amount*		Value
Repurchase Agreement—1.2%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $12,362,526; collateralized by U.S. Treasury Note at 2.750%, maturing 02/15/24, with a market value of $12,610,296.		12,361,702	$	12,361,702
Total Short-Term Investments (Cost $12,361,702)				12,361,702
Securities Lending Reinvestments (c)—18.2%
Certificates of Deposit—11.2%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (d)		4,000,000		3,999,656
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (d)		4,000,000		3,999,900
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (d)		4,750,000		4,751,895
Barclays Bank plc 2.500%, 02/01/19		2,000,000		1,999,742
2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		3,000,000		2,999,715
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (d)		4,000,000		3,998,392
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (d)		4,000,000		3,999,488
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (d)		1,000,000		1,000,003
2.642%, 1M LIBOR + 0.210%, 09/13/19 (d)		4,000,000		4,000,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		3,000,000		3,000,942
Credit Industriel et Commercial Zero Coupon, 01/25/19		2,961,684		2,994,900
Credit Industriel et Commercial (NY) 2.629%, 1M LIBOR + 0.250%, 02/05/19 (d)		3,500,000		3,500,088
Credit Suisse AG 2.620%, 04/01/19		6,000,000		5,996,892
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		3,969,950		3,995,920
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (d)		1,000,000		999,370
2.810%, 1M LIBOR + 0.370%, 02/14/19 (d)		2,000,000		2,000,374
Nordea Bank New York 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		5,000,000		5,004,809
Royal Bank of Canada New York 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		7,000,000		6,992,839
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (d)		6,000,000		5,999,508
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (d)		2,000,000		1,999,112
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (d)		6,000,000		5,999,826
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		8,000,000		7,997,064
Sumitomo Mitsui Banking Corp., New York 2.559%, 1M LIBOR + 0.180%, 03/05/19 (d)		3,000,000		2,999,289

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (d)		5,000,000	$	4,999,775
2.767%, 1M LIBOR + 0.380%, 12/10/19 (d)		2,000,000		1,999,934
2.799%, 1M LIBOR + 0.450%, 04/03/19 (d)		2,000,000		2,001,156
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		5,000,000		4,995,240
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (d)		1,000,000		1,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (d)		7,000,000		7,006,072
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		3,000,000		2,999,981
				115,231,882
Commercial Paper—3.6%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (d)		5,000,000		4,998,615
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (d)		7,000,000		7,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (d)		7,000,000		7,000,651
Matchpoint Finance plc 2.890%, 05/08/19		3,941,879		3,957,012
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (d)		4,000,000		3,999,936
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		10,000,000		10,002,450
				36,958,664
Repurchase Agreements—3.3%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $12,595,833; collateralized by various Common Stock with an aggregate market value of $13,752,292.		12,500,000		12,500,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $4,010,850; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $4,353,275.		4,000,000		4,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $755,635; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $765,000.		750,000		750,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $200,028; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $204,000.		200,000		200,000

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd.	��
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $400,055; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $408,000.		400,000	$	400,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $200,031; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $204,000.		200,000		200,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $9,245,041; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $9,428,266.		9,243,398		9,243,398
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,511,270; collateralized by various Common Stock with an aggregate market value of $1,650,000.		1,500,000		1,500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,511,270; collateralized by various Common Stock with an aggregate market value of $1,650,000.		1,500,000		1,500,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,000,427; collateralized by various Common Stock with an aggregate market value of $3,339,637.		3,000,000		3,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $600,085; collateralized by various Common Stock with an aggregate market value of $667,927.		600,000		600,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $400,056; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $438,190.		400,000		400,000
				34,293,398
Time Deposit—0.1%
Royal Bank of Canada 2.420%, 01/02/19		1,000,000		1,000,000
Total Securities Lending Reinvestments (Cost $187,494,538)				187,483,944
Total Investments—118.2% (Cost $1,125,114,139)				1,213,535,507
Other assets and liabilities (net)—(18.2)%				(187,130,303	)
Net Assets—100.0%			$	1,026,405,204

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $193,425,580 and the collateral received consisted of cash in the amount of $187,416,911 andnon-cash collateral with a value of $11,752,592. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b)	Non-income producing security.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Total Common Stocks*	$	1,013,689,861	$	—		$	—	$	1,013,689,861
Total Short - Term Investment*		—		12,361,702			—		12,361,702
Total Securities Lending Reinvestments*		—		187,483,944			—		187,483,944
Total Investments	$	1,013,689,861	$	199,845,646		$	—	$	1,213,535,507
Collateral for Securities Loaned (Liability)	$	—	$	(187,416,911	)	$	—	$	(187,416,911	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,213,535,507
Receivable for:
Investments sold		3,771,277
Fund shares sold		94,369
Dividends and interest		292,159
Prepaid expenses		3,194
Total Assets		1,217,696,506
Liabilities
Collateral for securities loaned		187,416,911
Payables for:
Investments purchased		2,586,824
Fund shares redeemed		328,039
Accrued Expenses:
Management fees		619,481
Distribution and service fees		39,062
Deferred trustees’ fees		138,370
Other expenses		162,615
Total Liabilities		191,291,302
Net Assets	$	1,026,405,204
Net Assets Consist of:
Paid in surplus	$	785,289,966
Distributable earnings (Accumulated losses)		241,115,238
Net Assets	$	1,026,405,204
Net Assets
Class A	$	799,017,066
Class B		144,894,434
Class D		74,242,410
Class E		8,251,294
Capital Shares Outstanding*
Class A		24,625,594
Class B		5,000,774
Class D		2,341,158
Class E		261,812
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	32.45
Class B		28.97
Class D		31.71
Class E		31.52

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $1,125,114,139.
(b)	Includes securities loaned at value of $193,425,580.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	6,704,476
Interest		72,605
Securities lending income		907,382
Total investment income		7,684,463
Expenses
Management fees		8,526,259
Administration fees		45,895
Custodian and accounting fees		75,427
Distribution and service fees—Class B		430,936
Distribution and service fees—Class D		87,227
Distribution and service fees—Class E		14,897
Audit and tax services		44,663
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		149,110
Insurance		7,754
Miscellaneous		19,341
Total expenses		9,480,560
Less management fee waiver		(253,342	)
Less broker commission recapture		(93,703	)
Net expenses		9,133,515
Net Investment Loss		(1,449,052	)
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments		154,601,162
Foreign currency transactions		1,596
Net realized gain		154,602,758
Net change in unrealized depreciation on investments		(208,699,364	)
Net realized and unrealized loss		(54,096,606	)
Net Decrease in Net Assets From Operations	$	(55,545,658	)

(a) Net of foreign withholding taxes of $30,194.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment loss	$	(1,449,052	)	$	(1,255,813	)
Net realized gain		154,602,758			133,869,343
Net change in unrealized appreciation (depreciation)		(208,699,364	)		134,667,169
Increase (decrease) in net assets from operations		(55,545,658	)		267,280,699
From Distributions to Shareholders (a)
Class A		(100,990,172	)		(21,562,735	)
Class B		(20,876,824	)		(4,569,749	)
Class D		(9,718,488	)		(2,121,753	)
Class E		(1,120,838	)		(246,731	)
Total distributions		(132,706,322	)		(28,500,968	)
Decrease in net assets from capital share transactions		(16,894,825	)		(130,157,854	)
Total increase (decrease) in net assets		(205,146,805	)		108,621,877
Net Assets
Beginning of period		1,231,552,009			1,122,930,132
End of period	$	1,026,405,204		$	1,231,552,009	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		129,276		$	4,707,976			134,407		$	4,684,834
Reinvestments		2,724,310			100,990,172			609,634			21,562,735
Redemptions		(2,939,192	)		(112,278,708	)		(3,521,078	)		(124,641,890	)
Net decrease		(85,606	)	$	(6,580,560	)		(2,777,037	)	$	(98,394,321	)
Class B
Sales		211,910		$	6,928,761			280,204		$	9,045,272
Reinvestments		629,768			20,876,824			142,360			4,569,749
Redemptions		(1,061,625	)		(36,085,641	)		(1,062,128	)		(34,090,788	)
Net decrease		(219,947	)	$	(8,280,056	)		(639,564	)	$	(20,475,767	)
Class D
Sales		93,499		$	3,486,570			85,955		$	2,955,608
Reinvestments		268,096			9,718,488			61,128			2,121,753
Redemptions		(396,539	)		(14,656,325	)		(440,176	)		(15,365,624	)
Net decrease		(34,944	)	$	(1,451,267	)		(293,093	)	$	(10,288,263	)
Class E
Sales		5,863		$	209,812			11,517		$	396,536
Reinvestments		31,100			1,120,838			7,143			246,731
Redemptions		(52,135	)		(1,913,592	)		(46,753	)		(1,642,770	)
Net decrease		(15,172	)	$	(582,942	)		(28,093	)	$	(999,503	)
Decrease derived from capital shares transactions				$	(16,894,825	)				$	(130,157,854	)

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were from net realized capital gains.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $(145,572) as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	38.43		$	31.41		$	33.70		$	37.28		$	36.90
Income (Loss) from Investment Operations
Net investment loss (a)		(0.03	)		(0.02	)		(0.00	)(b)(c)		(0.03	)		(0.05	)
Net realized and unrealized gain (loss)		(1.60	)		7.88			1.63			1.51			3.78
Total income (loss) from investment operations		(1.63	)		7.86			1.63			1.48			3.73
Less Distributions
Distributions from net realized capital gains		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Total distributions		(4.35	)		(0.84	)��		(3.92	)		(5.06	)		(3.35	)
Net Asset Value, End of Period	$	32.45		$	38.43		$	31.41		$	33.70		$	37.28
Total Return (%) (d)		(5.64	)		25.26			5.40			2.88			11.14
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.75			0.75			0.75			0.74			0.76
Net ratio of expenses to average net assets (%) (e)		0.73			0.73			0.73			0.73			0.75
Ratio of net investment loss to average net assets (%)		(0.08	)		(0.06	)		(0.00	)(b)(f)		(0.09	)		(0.13	)
Portfolio turnover rate (%)		44			31			40			60			48
Net assets, end of period (in millions)	$	799.0		$	949.7		$	863.5		$	878.5		$	831.2
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	34.83		$	28.61		$	31.11		$	34.85		$	34.79
Income (Loss) from Investment Operations
Net investment loss (a)		(0.11	)		(0.10	)		(0.07	)(b)		(0.12	)		(0.13	)
Net realized and unrealized gain (loss)		(1.40	)		7.16			1.49			1.44			3.54
Total income (loss) from investment operations		(1.51	)		7.06			1.42			1.32			3.41
Less Distributions
Distributions from net realized capital gains		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Total distributions		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Net Asset Value, End of Period	$	28.97		$	34.83		$	28.61		$	31.11		$	34.85
Total Return (%) (d)		(5.90	)		24.93			5.16			2.60			10.88
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.00			1.00			1.00			0.99			1.01
Net ratio of expenses to average net assets (%) (e)		0.98			0.98			0.98			0.98			1.00
Ratio of net investment loss to average net assets (%)		(0.33	)		(0.31	)		(0.25	)(b)		(0.35	)		(0.37	)
Portfolio turnover rate (%)		44			31			40			60			48
Net assets, end of period (in millions)	$	144.9		$	181.9		$	167.7		$	181.7		$	198.6

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class D
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	37.69		$	30.85		$	33.20		$	36.83		$	36.52
Income (Loss) from Investment Operations
Net investment loss (a)		(0.06	)		(0.06	)		(0.03	)(b)		(0.07	)		(0.08	)
Net realized and unrealized gain (loss)		(1.57	)		7.74			1.60			1.50			3.74
Total income (loss) from investment operations		(1.63	)		7.68			1.57			1.43			3.66
Less Distributions
Distributions from net realized capital gains		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Total distributions		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Net Asset Value, End of Period	$	31.71		$	37.69		$	30.85		$	33.20		$	36.83
Total Return (%) (d)		(5.76	)		25.14			5.29			2.78			11.06
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.85			0.85			0.85			0.84			0.86
Net ratio of expenses to average net assets (%) (e)		0.83			0.83			0.83			0.83			0.85
Ratio of net investment loss to average net assets (%)		(0.18	)		(0.16	)		(0.10	)(b)		(0.20	)		(0.22	)
Portfolio turnover rate (%)		44			31			40			60			48
Net assets, end of period (in millions)	$	74.2		$	89.6		$	82.3		$	89.8		$	101.3
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	37.50		$	30.71		$	33.08		$	36.73		$	36.46
Income (Loss) from Investment Operations
Net investment loss (a)		(0.08	)		(0.07	)		(0.05	)(b)		(0.09	)		(0.10	)
Net realized and unrealized gain (loss)		(1.55	)		7.70			1.60			1.50			3.72
Total income (loss) from investment operations		(1.63	)		7.63			1.55			1.41			3.62
Less Distributions
Distributions from net realized capital gains		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Total distributions		(4.35	)		(0.84	)		(3.92	)		(5.06	)		(3.35	)
Net Asset Value, End of Period	$	31.52		$	37.50		$	30.71		$	33.08		$	36.73
Total Return (%) (d)		(5.79	)		25.09			5.25			2.72			10.96
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.90			0.90			0.90			0.89			0.91
Net ratio of expenses to average net assets (%) (e)		0.88			0.88			0.88			0.88			0.90
Ratio of net investment loss to average net assets (%)		(0.23	)		(0.21	)		(0.15	)(b)		(0.25	)		(0.28	)
Portfolio turnover rate (%)		44			31			40			60			48
Net assets, end of period (in millions)	$	8.3		$	10.4		$	9.4		$	10.3		$	11.2

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.01% of average net assets, respectively.
(c)	Net investment income (loss) was less than $0.01.
(d)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(f)	Ratio of net investment income (loss) to average net assets was less than 0.01%.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Frontier Mid Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, D and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-14

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives the non-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $12,361,702. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $34,293,398. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

BHFTII-15

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	525,004,860	$	0	$688,253,652

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$8,526,259		0.750	%	Of the first $500 million
		0.700	%	Of the next $500 million
		0.650	%	On amounts in excess of $1 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Frontier Capital Management Company, LLC (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

BHFTII-16

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum reduction	Average Daily Net Assets
0.050%	On the first $500 million
0.025%	Over $850 million and less than $1 billion
(0.025)%	On the next $150 million

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class D and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class D and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class D and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,125,279,401
Gross unrealized appreciation		163,502,226
Gross unrealized depreciation		(75,246,120	)
Net unrealized appreciation (depreciation)	$	88,256,106

BHFTII-17

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$1,005,813	$	—	$	131,700,509	$	28,500,968	$	132,706,322	$	28,500,968

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$5,997,260	$	147,000,242	$	88,256,106	$	—	$	241,253,608

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Frontier Mid Cap Growth Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Frontier Mid Cap Growth Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Frontier Mid Cap Growth Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-21

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-22

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-23

Brighthouse Funds Trust II

Frontier Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Frontier Mid Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Frontier Capital Management Company, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the five-year period ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year and three-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the Russell Midcap Growth Index, for theone-, three- and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Universe and theSub-advised Expense Group at the Portfolio’s current size.

BHFTII-24

Brighthouse Funds Trust II

Jennison Growth Portfolio

Managed by Jennison Associates LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Jennison Growth Portfolio returned 0.35%, 0.11%, and 0.22%, respectively. The Portfolio’s benchmark, the Russell 1000 Growth Index¹, returned-1.51%.

MARKET ENVIRONMENT / CONDITIONS

As 2018 began, global gross domestic product growth was accelerating, the labor market was continuing to strengthen, and lower U.S. corporate tax rates were taking effect, helping to boost wages and capital spending. Given the constructive macroeconomic landscape, investors largely overlooked uncertainty created by White House trade and other policy initiatives. Asell-off in the fourth quarter reflected mounting investor concerns about a range of issues, including the pace of U.S. growth, decelerating expansion innon-U.S. economies, U.S. interest rate increases and their effect on U.S. economic growth, the rising risk of a major trade war with China, the state of U.S. trade alliances with other major trading partners, and discord and uncertainty about domestic policy, which culminated in a partial U.S. government shutdown as the year drew to a close.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio outperformed its benchmark over the12-month period ended December 31, 2018. Positive security selection within Information Technology (“IT”) was the primary driver of outperformance while relative sector weightings were modestly additive.

Overall, the Portfolio’s IT positions were strong contributors to Portfolio performance. Digital transformation of the enterprise has become a strategic imperative across many industries and companies and has supplanted Cloudware as the primarily tool to reduce infrastructure costs. In our view, Portfolio holdings Salesforce.com, Red Hat, Adobe, Workday, and Microsoft offered critical applications and services that have created fundamental changes in the way businesses operate. Payments companies continued to benefit from the long-term shift from cash to electronic credit and debit transactions. Both MasterCard and Visa held strong market positions with high barriers to entry, pricing power, and solid operating leverage potential. The Portfolio’s holdings in Square and PayPal offered innovativelow-cost, high-security,easy-to-use digital payment options, in particular for mobile and online transactions. Nvidia, on the other hand, fell significantly in the fourth quarter after strong performance through much of 2017 and 2018. Shares fell during the final quarter and reflectedlow- andmid-end gaming GPU inventory issues that were exacerbated by a slowdown in the cryptocurrency mining boom.

The Portfolio’s long-term holdings in U.S. internet companies continued to contribute meaningfully to performance. In the Communications Services sector, Netflix continued to raise its competitive barriers with investments in content, resulting in strong subscriber growth and increased pricing and operating leverage. Conversely, ongoing concern about data breaches, user-data usage, and increased government scrutiny, coupled with maturation of user engagement, continued to loom over Facebook during the period. However, the company has significant scale benefits and untapped monetization opportunities that we believe should drive better-than-average growth even with higher costs and restriction in data usage. The Portfolio’s holdings in Chinese internet companies fared less well. Tencent was negatively affected by new restrictions on video game approvals implemented by Chinese authorities. While the various business segments of Alibaba were providing significant revenue growth, the company’s stock declined over the period on high business investment spending and Chinese government efforts to tighten control of internet andnon-traditional financial companies.

In Consumer Discretionary, Amazon benefited from its market position, scale, and execution.

In Industrials, Boeing was a top relative performer in the Portfolio. Boeing’s gain reflected strong 787 Dreamliner commercial jet cash generation, solid cost controls, andramped-up 737 jet production. The company’s extensive order backlog reflected strong global demand.

Stock selection within the Portfolio’s Health Care positions were relative detractors over the period. Bristol-Myers Squibb fell on signs that itsnon-small cell lung cancer program has been eclipsed by a competing franchise. However, the likely broad adoption of immuno-oncology therapy in multiple settings pointed to avenues of potential future growth for Bristol. On the positive side, the Portfolio’s position in Illumina was additive on a relative basis and benefited from advances in systems for analyzing genetic variation and function continued to broaden the understanding of the clinical significance of the genome. We believe Illumina is at the forefront of this technology.

The Portfolio is constructed through individual stock selection, based on the fundamentals of individual companies. Sector weights over the course of 2018 were largely stable, with weights in IT and Health Care being increased modestly, and allocations to Communication Services and Financials being decreased slightly. As of December 31,

BHFTII-1

Brighthouse Funds Trust II

Jennison Growth Portfolio

Managed by Jennison Associates LLC

Portfolio Manager Commentary*—(Continued)

2018, and relative to the Russell 1000 Growth Index benchmark, the Portfolio was overweight Consumer Discretionary and Communication Services, and underweight Industrials.

Kathleen A. McCarragher

Spiros “Sig” Segalas

Michael A. Del Balso

Portfolio Managers

Jennison Associates LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Jennison Growth Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Jennison Growth Portfolio
Class A		0.35		10.77		15.31
Class B		0.11		10.49		15.01
Class E		0.22		10.61		15.14
Russell 1000 Growth Index		-1.51		10.41		15.29

¹ The Russell 1000 Growth Index is an unmanaged measure of performance of the largest capitalized U.S. companies, within the Russell 1000 companies, that have higher price-to-book ratios and forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Amazon.com, Inc.		5.8
Microsoft Corp.		5.2
Apple, Inc.		4.0
MasterCard, Inc. - Class A		4.0
Netflix, Inc.		3.8
Salesforce.com, Inc.		3.7
Visa, Inc. - Class A		3.6
Tencent Holdings, Ltd.		3.2
Adobe, Inc.		3.1
Alibaba Group Holding, Ltd.(ADR)		3.1

Top Sectors

	% of Net Assets
Information Technology		33.5
Consumer Discretionary		21.3
Communication Services		16.0
Health Care		14.2
Industrials		5.1
Financials		3.8
Consumer Staples		3.6
Real Estate		1.3
Energy		0.5

BHFTII-3

Brighthouse Funds Trust II

Jennison Growth Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Jennison Growth Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.54	%	$	1,000.00	$	896.20	$	2.58
	Hypothetical*		0.54	%	$	1,000.00	$	1,022.48	$	2.75
Class B (a)	Actual		0.79	%	$	1,000.00	$	895.00	$	3.77
	Hypothetical*		0.79	%	$	1,000.00	$	1,021.22	$	4.02
Class E (a)	Actual		0.69	%	$	1,000.00	$	895.50	$	3.30
	Hypothetical*		0.69	%	$	1,000.00	$	1,021.73	$	3.52

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

Jennison Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—99.3% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—4.1%
Boeing Co. (The)		230,345	$	74,286,262
Safran S.A.		212,104		25,482,194
				99,768,456
Automobiles—2.7%
Tesla, Inc. (a) (b)		197,487		65,723,674
Banks—1.6%
JPMorgan Chase & Co.		405,886		39,622,591
Biotechnology—4.2%
Alexion Pharmaceuticals, Inc. (b)		298,264		29,038,983
BioMarin Pharmaceutical, Inc. (b)		309,613		26,363,547
Celgene Corp. (b)		180,582		11,573,500
Vertex Pharmaceuticals, Inc. (b)		214,146		35,486,134
				102,462,164
Capital Markets—2.2%
Goldman Sachs Group, Inc. (The)		134,540		22,474,907
S&P Global, Inc.		182,827		31,069,620
				53,544,527
Entertainment—4.9%
Activision Blizzard, Inc.		546,843		25,466,479
Netflix, Inc. (b)		343,846		92,033,820
				117,500,299
Equity Real Estate Investment Trusts—1.3%
American Tower Corp.		77,191		12,210,845
Crown Castle International Corp.		177,448		19,276,176
				31,487,021
Food & Staples Retailing—2.1%
Costco Wholesale Corp.		247,326		50,382,779
Health Care Equipment & Supplies—1.9%
Edwards Lifesciences Corp. (a) (b)		101,724		15,581,065
IDEXX Laboratories, Inc. (b)		29,201		5,431,970
Intuitive Surgical, Inc. (b)		51,360		24,597,331
				45,610,366
Health Care Providers & Services—1.7%
UnitedHealth Group, Inc.		160,842		40,068,959
Hotels, Restaurants & Leisure—3.7%
Chipotle Mexican Grill, Inc. (a) (b)		40,833		17,631,281
Marriott International, Inc. - Class A (a)		354,650		38,500,804
McDonald’s Corp.		181,631		32,252,217
				88,384,302
Interactive Media & Services—11.1%
Alphabet, Inc. - Class A (b)		60,184		62,889,873
Alphabet, Inc. - Class C (b)		60,758		62,921,592
Facebook, Inc. - Class A (b)		508,920		66,714,323
Interactive Media & Services—(Continued)
Tencent Holdings, Ltd.		1,952,849		77,409,033
				269,934,821
Internet & Direct Marketing Retail—9.8%
Alibaba Group Holding, Ltd. (ADR) (a) (b)		544,217		74,595,824
Amazon.com, Inc. (b)		93,464		140,380,124
Booking Holdings, Inc. (b)		10,997		18,941,453
Farfetch, Ltd. - Class A (a) (b)		257,329		4,557,297
				238,474,698
IT Services—9.5%
MasterCard, Inc. - Class A		510,228		96,254,512
PayPal Holdings, Inc. (b)		400,340		33,664,591
Square, Inc. - Class A (a) (b)		250,797		14,067,204
Visa, Inc. - Class A (a)		658,864		86,930,516
				230,916,823
Life Sciences Tools & Services—1.9%
Illumina, Inc. (b)		156,200		46,849,066
Oil, Gas & Consumable Fuels—0.5%
EOG Resources, Inc.		135,271		11,796,984
Personal Products—1.6%
Estee Lauder Cos., Inc. (The) - Class A		291,098		37,871,850
Pharmaceuticals—4.5%
AstraZeneca plc (ADR) (a)		1,387,542		52,698,845
Bristol-Myers Squibb Co.		477,152		24,802,361
Merck & Co., Inc.		418,967		32,013,269
				109,514,475
Road & Rail—1.0%
Union Pacific Corp.		178,210		24,633,968
Semiconductors & Semiconductor Equipment—2.8%
Broadcom, Inc.		131,531		33,445,703
NVIDIA Corp.		257,743		34,408,690
				67,854,393
Software—17.2%
Adobe, Inc. (b)		333,151		75,372,082
Microsoft Corp.		1,249,309		126,892,315
Red Hat, Inc. (b)		177,734		31,217,200
Salesforce.com, Inc. (b)		657,248		90,023,259
ServiceNow, Inc. (b)		83,956		14,948,366
Splunk, Inc. (a) (b)		290,737		30,483,774
Workday, Inc. - Class A (a) (b)		298,040		47,591,027
				416,528,023
Specialty Retail—1.7%
Home Depot, Inc. (The)		245,561		42,192,291

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Jennison Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares/ Principal Amount*		Value
Technology Hardware, Storage & Peripherals—4.0%
Apple, Inc.		619,104	$	97,657,465
Textiles, Apparel & Luxury Goods—3.3%
Kering S.A.		65,362		30,590,363
lululemon athletica, Inc. (b)		103,284		12,560,367
NIKE, Inc. - Class B		511,133		37,895,401
				81,046,131
Total Common Stocks (Cost $1,634,101,899)				2,409,826,126
Short-Term Investment—0.7%
Repurchase Agreement—0.7%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $18,549,675; collateralized by U.S. Treasury Note at 2.875%, maturing 09/30/23, with a market value of $18,921,863.		18,548,438		18,548,438
Total Short-Term Investments (Cost $18,548,438)				18,548,438
Securities Lending Reinvestments (c)—14.1%
Certificates of Deposit—7.3%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (d)		3,000,000		2,999,742
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (d)		8,000,000		7,999,800
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (d)		4,000,000		3,999,997
3.072%, 3M LIBOR + 0.280%, 03/20/19 (d)		5,000,000		5,001,995
Barclays Bank plc 2.500%, 02/01/19		3,000,000		2,999,613
2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		3,500,000		3,499,668
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (d)		4,000,000		3,999,488
2.740%, 1M LIBOR + 0.270%, 07/19/19 (d)		2,000,000		1,999,188
China Construction Bank Corp. 2.550%, 01/07/19		2,000,000		2,000,000
Citibank N.A. 2.490%, 02/04/19		3,000,000		2,999,583
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (d)		2,000,000		2,000,006
2.642%, 1M LIBOR + 0.210%, 09/13/19 (d)		4,500,000		4,500,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		3,000,000		3,000,942
Credit Agricole S.A. 2.500%, 02/12/19		5,000,000		4,999,150
Credit Industriel et Commercial Zero Coupon, 01/25/19		7,330,169		7,412,377
Credit Suisse AG 2.620%, 04/01/19		8,000,000		7,995,856
2.890%, SOFR + 0.430%, 05/02/19 (d)		4,000,000		3,999,952
Certificates of Deposit—(Continued)
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		4,962,437		4,994,900
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (d)		4,000,000		4,000,024
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (d)		3,000,000		2,998,110
2.731%, 3M LIBOR + 0.190%, 02/01/19 (d)		2,000,000		1,999,552
2.940%, SOFR + 0.480%, 06/12/19 (d)		2,000,000		1,999,788
Royal Bank of Canada New York
2.650%, 1M LIBOR + 0.250%, 01/11/19 (d)		4,000,000		4,000,032
2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		6,000,000		5,993,862
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (d)		11,000,000		10,999,098
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (d)		3,000,000		2,998,668
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (d)		10,000,000		9,999,710
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (d)		6,000,000		5,999,880
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		7,000,000		6,997,431
Sumitomo Mitsui Banking Corp., New York
2.549%, 1M LIBOR + 0.200%, 04/03/19 (d)		2,000,059		1,999,408
2.559%, 1M LIBOR + 0.180%, 03/05/19 (d)		4,000,000		3,999,052
2.665%, 1M LIBOR + 0.210%, 05/17/19 (d)		7,000,000		6,997,060
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		6,949,443		6,961,990
Svenska Handelsbanken AB
2.620%, 3M LIBOR + 0.100%, 04/30/19 (d)		5,000,000		4,999,775
2.767%, 1M LIBOR + 0.380%, 12/10/19 (d)		5,000,000		4,999,835
2.822%, 1M LIBOR + 0.300%, 10/31/19 (d)		4,000,000		3,999,064
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		3,000,000		2,997,144
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		5,000,000		4,999,969
				176,341,709
Commercial Paper—2.4%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (d)		5,000,000		4,998,615
Banco Santander S.A.
2.500%, 01/16/19		3,974,444		3,995,184
2.740%, 02/07/19		4,964,989		4,985,440
Bank of China, Ltd. 2.690%, 01/17/19		4,966,375		4,994,130
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (d)		10,000,000		10,000,930
Matchpoint Finance plc 2.890%, 05/08/19		3,941,879		3,957,012
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (d)		4,000,000		3,999,936
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (d)		2,000,000		1,999,780
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		15,000,000		15,003,675

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Jennison Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Commercial Paper—(Continued)
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (d)		5,000,000	$	4,999,800
				58,934,502
Master Demand Notes—0.2%
Natixis Financial Products LLC 2.640%, OBFR + 0.250%, 01/02/19 (d)		4,000,000		4,000,000
Repurchase Agreements—4.0%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $15,115,000; collateralized by various Common Stock with an aggregate market value of $16,502,750.		15,000,000		15,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $6,016,275; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $6,529,912.		6,000,000		6,000,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $34,082; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $34,759.		34,077		34,077
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $51,305; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $52,324.		51,298		51,298
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $25,902; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $26,416.		25,898		25,898
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $1,802,203; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $1,837,921.		1,801,883		1,801,883
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $4,533,810; collateralized by various Common Stock with an aggregate market value of $4,950,000.		4,500,000		4,500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $8,563,863; collateralized by various Common Stock with an aggregate market value of $9,350,000.		8,500,000		8,500,000
Repurchase Agreements—(Continued)
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $10,001,422; collateralized by various Common Stock with an aggregate market value of $11,132,123.		10,000,000		10,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $15,007,554; collateralized by various Common Stock with an aggregate market value of $16,699,828.		15,000,000		15,000,000
Societe Generale
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $20,002,811; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $21,909,518.		20,000,000		20,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $5,002,489; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $5,477,379.		5,000,000		5,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $11,105,525; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $12,159,782.		11,100,000		11,100,000
				97,013,156
Time Deposit—0.2%
Royal Bank of Canada 2.420%, 01/02/19		5,000,000		5,000,000
Total Securities Lending Reinvestments (Cost $341,319,387)				341,289,367
Total Investment—114.1% (Cost $1,993,969,724)				2,769,663,931
Other assets and liabilities (net)—(14.1)%				(342,985,184	)
Net Assets—100.0%			$	2,426,678,747

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $340,582,384 and the collateral received consisted of cash in the amount of $341,102,951 andnon-cash collateral with a value of $6,327,791. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe- keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b)	Non-income producing security.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Jennison Growth Portfolio

Schedule of Investments as of December 31, 2018

(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(OBFR)—	U.S. Overnight Bank Funding Rate
(SOFR)—	Secured Overnight Financing Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Aerospace & Defense	$	74,286,262	$	25,482,194		$	—	$	99,768,456
Automobiles		65,723,674		—			—		65,723,674
Banks		39,622,591		—			—		39,622,591
Biotechnology		102,462,164		—			—		102,462,164
Capital Markets		53,544,527		—			—		53,544,527
Entertainment		117,500,299		—			—		117,500,299
Equity Real Estate Investment Trusts		31,487,021		—			—		31,487,021
Food & Staples Retailing		50,382,779		—			—		50,382,779
Health Care Equipment & Supplies		45,610,366		—			—		45,610,366
Health Care Providers & Services		40,068,959		—			—		40,068,959
Hotels, Restaurants & Leisure		88,384,302		—			—		88,384,302
Interactive Media & Services		192,525,788		77,409,033			—		269,934,821
Internet & Direct Marketing Retail		238,474,698		—			—		238,474,698
IT Services		230,916,823		—			—		230,916,823
Life Sciences Tools & Services		46,849,066		—			—		46,849,066
Oil, Gas & Consumable Fuels		11,796,984		—			—		11,796,984
Personal Products		37,871,850		—			—		37,871,850
Pharmaceuticals		109,514,475		—			—		109,514,475
Road & Rail		24,633,968		—			—		24,633,968
Semiconductors & Semiconductor Equipment		67,854,393		—			—		67,854,393
Software		416,528,023		—			—		416,528,023
Specialty Retail		42,192,291		—			—		42,192,291
Technology Hardware, Storage & Peripherals		97,657,465		—			—		97,657,465
Textiles, Apparel & Luxury Goods		50,455,768		30,590,363			—		81,046,131
Total Common Stocks		2,276,344,536		133,481,590			—		2,409,826,126
Total Short-Term Investment*		—		18,548,438			—		18,548,438
Total Securities Lending Reinvestments*		—		341,289,367			—		341,289,367
Total Investments	$	2,276,344,536	$	493,319,395		$	—	$	2,769,663,931
Collateral for Securities Loaned (Liability)	$	—	$	(341,102,951	)	$	—	$	(341,102,951	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Jennison Growth Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	2,769,663,931
Receivable for:
Fund shares sold		213,302
Dividends and interest		343,193
Prepaid expenses		7,712
Total Assets		2,770,228,138
Liabilities
Collateral for securities loaned		341,102,951
Payables for:
Fund shares redeemed		737,471
Accrued Expenses:
Management fees		1,104,037
Distribution and service fees		172,677
Deferred trustees’ fees		160,655
Other expenses		271,600
Total Liabilities		343,549,391
Net Assets	$	2,426,678,747
Net Assets Consist of:
Paid in surplus	$	1,248,467,796
Distributable earnings (Accumulated losses)		1,178,210,951
Net Assets	$	2,426,678,747
Net Assets
Class A	$	1,625,636,810
Class B		788,698,423
Class E		12,343,514
Capital Shares Outstanding*
Class A		112,083,891
Class B		55,367,900
Class E		857,581
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	14.50
Class B		14.24
Class E		14.39

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $1,993,969,724.
(b)	Includes securities loaned at value of $340,582,384.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	21,704,004
Non-cash dividends		3,865,685
Interest		52,315
Securities lending income		2,048,647
Total investment income		27,670,651
Expenses
Management fees		16,980,818
Administration fees		98,395
Custodian and accounting fees		172,281
Distribution and service fees—Class B		2,261,031
Distribution and service fees—Class E		21,527
Audit and tax services		44,662
Legal		45,316
Trustees’ fees and expenses		33,732
Shareholder reporting		132,532
Insurance		18,319
Miscellaneous		57,937
Total expenses		19,866,550
Less management fee waiver		(2,273,574	)
Less broker commission recapture		(69,611	)
Net expenses		17,523,365
Net Investment Income		10,147,286
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments		395,734,574
Foreign currency transactions		26,039
Net realized gain		395,760,613
Net change in unrealized depreciation on:
Investments		(347,677,137	)
Foreign currency transactions		(4,945	)
Net change in unrealized depreciation		(347,682,082	)
Net realized and unrealized gain		48,078,531
Net Increase in Net Assets From Operations	$	58,225,817

(a) Net of foreign withholding taxes of $691,933.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Jennison Growth Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	10,147,286		$	7,969,834
Net realized gain		395,760,613			413,530,795
Net change in unrealized appreciation (depreciation)		(347,682,082	)		456,476,709
Increase in net assets from operations		58,225,817			877,977,338
From Distributions to Shareholders (a)
Class A		(285,901,316	)		(141,964,854	)
Class B		(135,875,410	)		(61,476,425	)
Class E		(2,173,787	)		(893,829	)
Total distributions		(423,950,513	)		(204,335,108	)
Decrease in net assets from capital share transactions		(94,200,687	)		(360,449,847	)
Total increase (decrease) in net assets		(459,925,383	)		313,192,383
Net Assets
Beginning of period		2,886,604,130			2,573,411,747
End of period	$	2,426,678,747		$	2,886,604,130	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		3,754,595		$	63,688,868			2,471,333		$	38,184,136
Reinvestments		17,099,361			285,901,316			9,730,285			141,964,854
Redemptions		(26,652,343	)		(471,395,522	)		(29,136,036	)		(446,966,658	)
Net decrease		(5,798,387	)	$	(121,805,338	)		(16,934,418	)	$	(266,817,668	)
Class B
Sales		4,409,354		$	72,845,490			2,193,395		$	33,511,604
Reinvestments		8,264,927			135,875,410			4,272,163			61,476,425
Redemptions		(10,768,477	)		(181,998,176	)		(12,435,218	)		(188,357,013	)
Net increase (decrease)		1,905,804		$	26,722,724			(5,969,660	)	$	(93,368,984	)
Class E
Sales		238,032		$	4,078,585			99,379		$	1,518,729
Reinvestments		130,951			2,173,787			61,601			893,829
Redemptions		(320,539	)		(5,370,445	)		(175,341	)		(2,675,753	)
Net increase (decrease)		48,444		$	881,927			(14,361	)	$	(263,195	)
Decrease derived from capital shares transactions				$	(94,200,687	)				$	(360,449,847	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(6,092,912	)	$	(135,871,942	)
Class B		(708,505	)		(60,767,920	)
Class E		(21,896	)		(871,933	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $7,321,723 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Jennison Growth Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.85		$	13.25		$	15.30		$	16.23		$	15.82
Income (Loss) from Investment Operations
Net investment income (a)		0.07			0.06			0.05			0.04			0.04
Net realized and unrealized gain (loss)		0.35			4.71			(0.16	)		1.67			1.26
Total income (loss) from investment operations		0.42			4.77			(0.11	)		1.71			1.30
Less Distributions
Distributions from net investment income		(0.06	)		(0.05	)		(0.04	)		(0.05	)		(0.04	)
Distributions from net realized capital gains		(2.71	)		(1.12	)		(1.90	)		(2.59	)		(0.85	)
Total distributions		(2.77	)		(1.17	)		(1.94	)		(2.64	)		(0.89	)
Net Asset Value, End of Period	$	14.50		$	16.85		$	13.25		$	15.30		$	16.23
Total Return (%) (b)		0.35			37.32			0.17			10.78			9.06
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.62			0.62			0.62			0.62			0.62
Net ratio of expenses to average net assets (%) (c)		0.54			0.54			0.55			0.54			0.54
Ratio of net investment income to average net assets (%)		0.44			0.36			0.35			0.27			0.26
Portfolio turnover rate (%)		26			35			25			28			25
Net assets, end of period (in millions)	$	1,625.6		$	1,986.1		$	1,786.2		$	1,897.1		$	2,047.5
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.59		$	13.06		$	15.11		$	16.05		$	15.66
Income (Loss) from Investment Operations
Net investment income (a)		0.03			0.02			0.01			0.00	(d)		0.00	(d)
Net realized and unrealized gain (loss)		0.35			4.64			(0.16	)		1.65			1.25
Total income (loss) from investment operations		0.38			4.66			(0.15	)		1.65			1.25
Less Distributions
Distributions from net investment income		(0.02	)		(0.01	)		(0.00	)(e)		(0.00	)(e)		(0.01	)
Distributions from net realized capital gains		(2.71	)		(1.12	)		(1.90	)		(2.59	)		(0.85	)
Total distributions		(2.73	)		(1.13	)		(1.90	)		(2.59	)		(0.86	)
Net Asset Value, End of Period	$	14.24		$	16.59		$	13.06		$	15.11		$	16.05
Total Return (%) (b)		0.11			36.99			(0.13	)		10.54			8.74
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.87			0.87			0.87			0.87			0.87
Net ratio of expenses to average net assets (%) (c)		0.79			0.79			0.80			0.79			0.79
Ratio of net investment income to average net assets (%)		0.19			0.11			0.10			0.02			0.01
Portfolio turnover rate (%)		26			35			25			28			25
Net assets, end of period (in millions)	$	788.7		$	887.0		$	776.3		$	867.6		$	907.1

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Jennison Growth Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.74		$	13.17		$	15.22		$	16.15		$	15.75
Income (Loss) from Investment Operations
Net investment income (a)		0.05			0.03			0.03			0.02			0.02
Net realized and unrealized gain (loss)		0.35			4.69			(0.16	)		1.66			1.25
Total income (loss) from investment operations		0.40			4.72			(0.13	)		1.68			1.27
Less Distributions
Distributions from net investment income		(0.04	)		(0.03	)		(0.02	)		(0.02	)		(0.02	)
Distributions from net realized capital gains		(2.71	)		(1.12	)		(1.90	)		(2.59	)		(0.85	)
Total distributions		(2.75	)		(1.15	)		(1.92	)		(2.61	)		(0.87	)
Net Asset Value, End of Period	$	14.39		$	16.74		$	13.17		$	15.22		$	16.15
Total Return (%) (b)		0.22			37.12			(0.01	)		10.66			8.86
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.77			0.77			0.77			0.77			0.77
Net ratio of expenses to average net assets (%) (c)		0.69			0.69			0.70			0.69			0.69
Ratio of net investment income to average net assets (%)		0.28			0.21			0.20			0.12			0.11
Portfolio turnover rate (%)		26			35			25			28			25
Net assets, end of period (in millions)	$	12.3		$	13.5		$	10.8		$	12.6		$	12.0

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(d)	Net investment income (loss) was less than $0.01.
(e)	Distributions from net investment income were less than $0.01.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Jennison Growth Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Jennison Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Jennison Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-14

Brighthouse Funds Trust II

Jennison Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $18,548,438. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $97,013,156. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

BHFTII-15

Brighthouse Funds Trust II

Jennison Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	739,819,387	$	0	$	1,259,291,185

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$16,980,818		0.700	%	Of the first $200 million
		0.650	%	Of the next $300 million
		0.600	%	Of the next $1.5 billion
		0.550	%	On amounts in excess of $2 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Jennison Associates LLC (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

BHFTII-16

Brighthouse Funds Trust II

Jennison Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waivers - Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.100%	Of the first $200 million
0.050%	On the next $800 million
0.100%	On the next $1 billion
0.080%	On amounts in excess of $2 billion

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,998,389,744
Gross unrealized appreciation		816,663,785
Gross unrealized depreciation		(45,389,598	)
Net unrealized appreciation (depreciation)	$	771,274,187

BHFTII-17

Brighthouse Funds Trust II

Jennison Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$10,269,055	$	6,823,313	$	413,681,458	$	197,511,795	$	423,950,513	$	204,335,108

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$9,759,883	$	397,334,198	$	771,277,525	$	—	$	1,178,371,606

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

Jennison Growth Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Jennison Growth Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Jennison Growth Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Jennison Growth Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-21

Brighthouse Funds Trust II

Jennison Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-22

Brighthouse Funds Trust II

Jennison Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-23

Brighthouse Funds Trust II

Jennison Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Jennison Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Jennison Associates LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Russell 1000 Growth Index, for theone-, three-, and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-l fees) were below the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-24

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Managed by Loomis, Sayles & Company, L.P.

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Loomis Sayles Small Cap Core Portfolio returned-11.07%,-11.30%, and-11.21%, respectively. The Portfolio’s benchmark, the Russell 2000 Index¹, returned-11.01%.

MARKET ENVIRONMENT / CONDITIONS

After a somewhat weak and volatile start to 2018, domestic equity markets returned to broad-based gains during the first half of the year. Despite numerous concerns including the aging economic recovery, Federal Reserve (the “Fed”) interest rate normalization and intensifying threats of import tariffs and trade wars, investors chose to focus on the current healthy state of the U.S. economy and the improved corporate earnings outlook. Against this backdrop of tax reform, trade wars, U.S. dollar strength and weaker international growth, domestically focused U.S. small cap stocks benefited from strong inflows. The first half of the year saw material outperformance from the smallest of the small cap stocks and from small cap growth stocks far exceeding their value counterparts.

Starting late in the third quarter, market leadership began to change. Stocks tumbled during the final quarter of 2018, with concerns about continued Fed policy tightening, trade wars and weaker global growth all contributing to a negative turn in investor sentiment. The market decline was broad based and comprehensive across market capitalization and investment style.Small-cap stocks were particularly weak, continuing a trend that started during the third quarter. The sharp decline more than offset the advantage small caps had over large caps during the first half of the calendar year. The fourth quartersell-off also completely reversed the prioryear-to-date market gains and turned what appeared in late August to be a dynamic and attractive return year for U.S. equities, into modest overall losses. Economic drivers and investor sentiment also shifted, which resulted in distinct changes in market leadership.

The disparity of returns between market capitalizations and investment style proved meaningful for the year. The Russell 2000 Small Cap Index produced a-11.0% return, well below the-4.4% return of the S&P 500 Index. For the calendar year of 2018,small-cap growth stocks outperformed value stocks as the Russell 2000 Growth Index returned-9.3% compared to the Russell 2000 Value Index return of-12.9%.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio underperformed the Russell 2000 Index during the twelve months ended December 31, 2018. An underweight allocation to the Health Care sector, coupled with stock selection in the Financials, Energy, and Information Technology (“IT”) sectors detracted from relative performance. Conversely, positive stock selection in the Health Care sector more than offset the negative effects of the sector underweight. An underweight to the Energy sector, the worst performing sector in the Index, aided relative performance, and an overweight to the IT sector and stock selection in the Industrials and Materials sectors were beneficial to the Portfolio’s return.

The largest detractors from the Portfolio’s performance were LCI Industries, C&J Energy Services. and Marriott Vacations Worldwide. LCI Industries is a leading supplier ofsub-components and parts for recreational vehicles, manufactured housing and other consumer durable end markets. After a strong run during the second half of 2017, the stock came under pressure due to investor concerns over rising raw material costs and the sustainability of robust trends in the RV industry as end market trends continued to weaken. C&J Energy provides well construction, completions and services to the oil and gas industry. While the entire energy sector was under intense pressure for much of the year, C&J was particularly impacted as customers reduced capital spending plans due to lower commodity prices and production bottlenecks in various markets. Marriott Vacations manages and develops vacation ownership resorts, also known as time share properties. In April of 2018, the company announced an anticipated acquisition of peer ILG, but investors were disappointed by cost saving projections and the price of the deal, as well as by numerous merger related accounting adjustments when the newly-combined entity reported its third quarter earnings results. These issues combined with concerns regarding the domestic economy caused the stock to contract further intoyear-end.

The Portfolio’s top contributors over the year included Insperity, Mellanox Technologies, and Five9, Inc. Insperity is a provider of human resource services including payroll, benefits administration, workers comp and recruiting to small and medium sized businesses. The company has posted a string of positive earnings reports and fundamental improvements in employment trends continued to drive the stock materially higher over the year. Mellanox Technologies is a leading provider of networking technologies used for high performance and cloud computing. The explosion of data and proliferation of data centers has driven demand for faster networks and interconnects, matching well with the leading products developed by Mellanox. Five9, the largest cloud contact center solutions provider, reported a solid quarter during the year with record revenues. The company executed well in a market that continued to benefit from the conversion ofon-premise legacy solutions to cloud-based solutions.

During the period, we added new stocks with attractive investment potential and eliminated holdings where the valuation had exceeded our target levels or where fundamentals no longer fit our investment thesis. New positions included NextEra Energy Partners, Vistra Energy, and Harsco Corporation. NextEra Partners is a growth-oriented limited partnership formed to acquire and manage contracted clean energy projects (wind and solar). Vistra Energy is the largest independent, wholesale power producer in the U.S. and also operates TXU Energy, the largest retailer of electricity in Texas. Harsco is a diversified, multinational provider of industrial services and engineered products. Eliminations from the Portfolio included Teradyne, based on market capitalization and stock valuations; Caesars Entertainment on elevated debt levels on balance sheet and near-term operational pressures; and Arch Coal was sold after the stock price recovered from first quarter earnings that were lower than investor expectations.

BHFTII-1

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Managed by Loomis, Sayles & Company, L.P.

Portfolio Manager Commentary*—(Continued)

We managed the Portfolio in a bottom up, fundamentally grounded fashion and focused on selecting stocks that fit our investment philosophy and process. While the economic backdrop may be a consideration in the analysis of each security’s investment potential, the Portfolio’s decisions were not driven by macroeconomic expectations. Sector weight changes during the period ended December 31, 2018 were modest and reflected both our repositioning within the Portfolio as well as market impacts. We decreased weights in the Energy and Industrials sectors while we increased the weights to the Health Care and Utility sectors.

Mark Burns

John Slavik

Joe Gatz

Jeff Schwatz

Portfolio Managers

Loomis, Sayles & Company, L.P.

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Loomis Sayles Small Cap Core Portfolio
Class A		-11.07		4.55		12.93
Class B		-11.30		4.29		12.64
Class E		-11.21		4.40		12.76
Russell 2000 Index		-11.01		4.41		11.97

¹ The Russell 2000 Index is an unmanaged measure of performance of the 2,000 smallest companies in the Russell 3000 Index.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Euronet Worldwide, Inc.		1.1
Littelfuse, Inc.		1.1
AMN Healthcare Services, Inc.		1.0
Mellanox Technologies, Ltd.		1.0
ALLETE, Inc.		1.0
KAR Auction Services, Inc.		0.9
Employers Holdings, Inc.		0.8
Ingevity Corp.		0.8
Viad Corp.		0.8
RBC Bearings, Inc.		0.8

Top Sectors

	% of Net Assets
Financials		19.2
Information Technology		17.9
Industrials		17.3
Health Care		12.1
Consumer Discretionary		10.7
Real Estate		5.2
Consumer Staples		3.8
Utilities		3.4
Materials		3.1
Communication Services		2.6

BHFTII-3

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Loomis Sayles Small Cap Core Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.88	%	$	1,000.00	$	843.10	$	4.09
	Hypothetical*		0.88	%	$	1,000.00	$	1,020.77	$	4.48
Class B (a)	Actual		1.13	%	$	1,000.00	$	842.10	$	5.25
	Hypothetical*		1.13	%	$	1,000.00	$	1,019.51	$	5.75
Class E (a)	Actual		1.03	%	$	1,000.00	$	842.50	$	4.78
	Hypothetical*		1.03	%	$	1,000.00	$	1,020.01	$	5.24

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—97.5% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—2.2%
AAR Corp.		33,304	$	1,243,572
Aerojet Rocketdyne Holdings, Inc. (a) (b)		80,335		2,830,202
Astronics Corp. (a)		30,698		934,754
BWX Technologies, Inc.		28,779		1,100,221
Hexcel Corp. (b)		25,049		1,436,310
Mercury Systems, Inc. (a)		19,842		938,328
				8,483,387
Auto Components—1.4%
Cooper Tire & Rubber Co. (b)		60,215		1,946,751
Fox Factory Holding Corp. (a)		30,032		1,767,984
LCI Industries		14,151		945,287
Stoneridge, Inc. (a)		27,595		680,216
				5,340,238
Banks—11.7%
Ameris Bancorp		19,662		622,696
BancorpSouth Bank		83,888		2,192,832
Bank OZK (b)		39,676		905,803
Bryn Mawr Bank Corp.		59,197		2,036,377
Carolina Financial Corp.		27,114		802,303
Cathay General Bancorp (b)		73,024		2,448,495
CenterState Bank Corp.		95,934		2,018,451
Chemical Financial Corp.		78,053		2,857,520
CVB Financial Corp.		128,647		2,602,529
First Financial Bancorp		90,458		2,145,664
First Financial Bankshares, Inc.		27,618		1,593,282
Home BancShares, Inc.		129,552		2,116,880
Iberiabank Corp.		35,130		2,258,156
Pacific Premier Bancorp, Inc. (a)		25,133		641,394
PacWest Bancorp (b)		53,740		1,788,467
Pinnacle Financial Partners, Inc.		58,445		2,694,315
Popular, Inc.		57,298		2,705,612
Prosperity Bancshares, Inc. (b)		42,944		2,675,411
Signature Bank		15,796		1,623,987
Texas Capital Bancshares, Inc. (a)		28,872		1,475,070
Triumph Bancorp, Inc. (a)		78,995		2,346,152
UMB Financial Corp.		16,364		997,713
Wintrust Financial Corp.		40,182		2,671,701
				44,220,810
Beverages—0.8%
Cott Corp.		156,629		2,183,408
MGP Ingredients, Inc. (b)		17,371		991,016
				3,174,424
Biotechnology—1.6%
Aimmune Therapeutics, Inc. (a) (b)		34,485		824,881
Argenx SE (ADR) (a)		12,057		1,158,316
Blueprint Medicines Corp. (a)		14,125		761,479
Genomic Health, Inc. (a)		23,025		1,483,040
Myriad Genetics, Inc. (a)		28,686		833,902
Xencor, Inc. (a)		25,103		907,725
				5,969,343
Building Products—1.9%
AAON, Inc.		12,621	$	442,492
Armstrong World Industries, Inc.		37,848		2,203,132
Masonite International Corp. (a)		26,067		1,168,584
Resideo Technologies, Inc. (a)		92,388		1,898,573
Trex Co., Inc. (a)		26,889		1,596,131
				7,308,912
Capital Markets—1.3%
Artisan Partners Asset Management, Inc. - Class A		29,863		660,271
Donnelley Financial Solutions, Inc. (a)		122,388		1,717,104
Hercules Capital, Inc.		72,230		798,141
Stifel Financial Corp.		46,489		1,925,574
				5,101,090
Chemicals—2.8%
AdvanSix, Inc. (a)		78,722		1,916,093
Ashland Global Holdings, Inc.		22,086		1,567,223
Cabot Corp.		40,908		1,756,589
Ingevity Corp. (a)		35,498		2,970,828
Minerals Technologies, Inc.		13,763		706,592
WR Grace & Co.		26,112		1,694,930
				10,612,255
Commercial Services & Supplies—2.4%
Clean Harbors, Inc. (a)		33,861		1,671,040
KAR Auction Services, Inc.		70,931		3,384,827
Kimball International, Inc. - Class B		74,366		1,055,254
Viad Corp.		58,200		2,915,238
				9,026,359
Communications Equipment—0.6%
Digi International, Inc. (a)		95,393		962,515
Viavi Solutions, Inc. (a)		119,300		1,198,965
				2,161,480
Construction & Engineering—0.5%
MYR Group, Inc. (a)		24,384		686,897
Primoris Services Corp.		54,077		1,034,493
				1,721,390
Consumer Finance—0.8%
Green Dot Corp. - Class A (a)		22,014		1,750,553
PRA Group, Inc. (a) (b)		47,374		1,154,505
				2,905,058
Distributors—0.6%
Core-Mark Holding Co., Inc.		16,902		392,972
Pool Corp.		13,076		1,943,747
				2,336,719
Diversified Consumer Services—2.6%
Adtalem Global Education, Inc. (a)		23,401		1,107,335
Bright Horizons Family Solutions, Inc. (a)		12,271		1,367,603
Chegg, Inc. (a) (b)		56,592		1,608,345

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Diversified Consumer Services—(Continued)
frontdoor, Inc. (a)		19,192	$	510,699	��
Grand Canyon Education, Inc. (a)		20,435		1,964,621
Laureate Education, Inc. - Class A (a)		112,485		1,714,271
ServiceMaster Global Holdings, Inc. (a)		38,385		1,410,265
				9,683,139
Diversified Financial Services—0.3%
Cannae Holdings, Inc. (a)		73,360		1,255,923
Diversified Telecommunication Services—0.4%
Cogent Communications Holdings, Inc.		32,529		1,470,636
Electric Utilities—1.0%
ALLETE, Inc.		48,118		3,667,554
Electrical Equipment—0.9%
Generac Holdings, Inc. (a)		33,833		1,681,500
TPI Composites, Inc. (a) (b)		74,238		1,824,770
				3,506,270
Electronic Equipment, Instruments & Components—2.3%
II-VI, Inc. (a) (b)		26,463		858,989
Kimball Electronics, Inc. (a)		31,991		495,540
Littelfuse, Inc.		23,346		4,003,372
Methode Electronics, Inc.		43,423		1,011,322
Novanta, Inc. (a)		8,006		504,378
Rogers Corp. (a)		6,902		683,712
Vishay Intertechnology, Inc. (b)		60,772		1,094,504
				8,651,817
Energy Equipment & Services—1.4%
Apergy Corp. (a)		64,606		1,749,530
C&J Energy Services, Inc. (a)		91,483		1,235,021
Cactus, Inc. - Class A (a)		44,886		1,230,325
KLX Energy Services Holdings, Inc. (a)		42,127		987,878
				5,202,754
Entertainment—0.5%
IMAX Corp. (a)		65,310		1,228,481
Liberty Braves Group - Class C (a)		26,346		655,752
				1,884,233
Equity Real Estate Investment Trusts—5.2%
American Campus Communities, Inc.		38,783		1,605,228
Corepoint Lodging, Inc.		32,847		402,376
CubeSmart		96,732		2,775,241
CyrusOne, Inc. (b)		37,480		1,981,942
iStar, Inc. (b)		183,427		1,682,026
JBG SMITH Properties		62,434		2,173,328
National Retail Properties, Inc. (b)		31,847		1,544,898
Retail Opportunity Investments Corp.		178,706		2,837,851
Rexford Industrial Realty, Inc.		65,662		1,935,059
Ryman Hospitality Properties, Inc.		25,498		1,700,462
Sabra Health Care REIT, Inc.		57,386		945,721
				19,584,132
Food & Staples Retailing—0.3%
Chefs’ Warehouse, Inc. (The) (a)		38,016		1,215,752
Food Products—2.6%
Darling Ingredients, Inc. (a)		60,799		1,169,773
Freshpet, Inc. (a) (b)		44,867		1,442,923
J&J Snack Foods Corp.		15,915		2,301,150
Nomad Foods, Ltd. (a)		162,805		2,722,099
Post Holdings, Inc. (a) (b)		24,082		2,146,429
				9,782,374
Health Care Equipment & Supplies—4.0%
AtriCure, Inc. (a)		53,517		1,637,620
Avanos Medical, Inc. (a) (b)		45,994		2,060,071
Insulet Corp. (a) (b)		21,945		1,740,678
iRhythm Technologies, Inc. (a)		19,660		1,365,977
Merit Medical Systems, Inc. (a)		24,336		1,358,192
Penumbra, Inc. (a) (b)		7,987		976,011
Quidel Corp. (a)		31,577		1,541,589
Tactile Systems Technology, Inc. (a)		17,620		802,591
Varex Imaging Corp. (a)		76,538		1,812,420
Wright Medical Group NV (a) (b)		69,910		1,902,950
				15,198,099
Health Care Providers & Services—2.0%
Amedisys, Inc. (a)		13,227		1,549,014
AMN Healthcare Services, Inc. (a)		69,293		3,926,141
BioTelemetry, Inc. (a)		26,965		1,610,350
LHC Group, Inc. (a)		6,901		647,866
				7,733,371
Health Care Technology—1.8%
Evolent Health, Inc. - Class A (a) (b)		44,323		884,244
HMS Holdings Corp. (a)		26,936		757,710
Medidata Solutions, Inc. (a) (b)		26,314		1,774,090
Teladoc Health, Inc. (a) (b)		26,582		1,317,670
Vocera Communications, Inc. (a) (b)		50,850		2,000,947
				6,734,661
Hotels, Restaurants & Leisure—2.5%
Churchill Downs, Inc.		10,154		2,476,967
Cracker Barrel Old Country Store, Inc. (b)		5,394		862,285
Marriott Vacations Worldwide Corp.		28,405		2,002,837
Planet Fitness, Inc. - Class A (a) (b)		39,528		2,119,491
Wingstop, Inc.		29,916		1,920,308
				9,381,888
Household Durables—0.6%
Helen of Troy, Ltd. (a)		18,355		2,407,809
Independent Power and Renewable Electricity Producers—1.3%
NextEra Energy Partners LP (b)		56,995		2,453,635
Vistra Energy Corp. (a)		103,957		2,379,575
				4,833,210

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Industrial Conglomerates—0.6%
Raven Industries, Inc.		59,151	$	2,140,675
Insurance—3.7%
Employers Holdings, Inc.		75,036		3,149,261
First American Financial Corp.		42,713		1,906,708
Goosehead Insurance, Inc. - Class A (a) (b)		35,811		941,471
Kinsale Capital Group, Inc. (b)		32,803		1,822,535
ProAssurance Corp.		40,245		1,632,337
Reinsurance Group of America, Inc.		19,152		2,685,685
Stewart Information Services Corp.		19,533		808,666
Trupanion, Inc. (a) (b)		46,884		1,193,667
				14,140,330
Interactive Media & Services—0.2%
IAC/InterActiveCorp (a)		3,568		653,087
Internet & Direct Marketing Retail—0.2%
Duluth Holdings, Inc. - Class B (a) (b)		36,309		916,076
IT Services—5.3%
Conduent, Inc. (a)		145,416		1,545,772
CSG Systems International, Inc.		39,060		1,240,936
Euronet Worldwide, Inc. (a)		39,741		4,068,683
EVERTEC, Inc.		29,459		845,473
Evo Payments, Inc. - Class A (a) (b)		55,836		1,377,474
Genpact, Ltd.		75,014		2,024,628
InterXion Holding NV (a)		31,273		1,693,746
Perspecta, Inc.		117,487		2,023,126
Virtusa Corp. (a)		34,308		1,461,178
WEX, Inc. (a)		16,345		2,289,281
WNS Holdings, Ltd. (ADR) (a)		39,904		1,646,439
				20,216,736
Leisure Products—0.2%
Malibu Boats, Inc. - Class A (a)		25,481		886,739
Life Sciences Tools & Services—1.3%
Cambrex Corp. (a) (b)		54,836		2,070,607
NeoGenomics, Inc. (a)		64,622		814,884
PRA Health Sciences, Inc. (a)		22,803		2,096,964
				4,982,455
Machinery—5.3%
Alamo Group, Inc.		14,965		1,157,094
Albany International Corp. - Class A		27,333		1,706,399
Altra Industrial Motion Corp.		57,600		1,448,640
Chart Industries, Inc. (a)		15,037		977,856
Columbus McKinnon Corp.		60,543		1,824,766
EnPro Industries, Inc.		30,064		1,806,847
Harsco Corp. (a)		112,442		2,233,098
John Bean Technologies Corp.		13,507		969,938
Kadant, Inc.		17,934		1,460,904
Kornit Digital, Ltd. (a) (b)		51,078		956,180
Proto Labs, Inc. (a)		14,341		1,617,521
RBC Bearings, Inc. (a)		21,798		2,857,718
Machinery—(Continued)
Standex International Corp.		15,674		1,052,979
				20,069,940
Marine—0.3%
Kirby Corp. (a)		17,389		1,171,323
Media—1.6%
GCI Liberty, Inc. - Class A (a)		53,435		2,199,385
Gray Television, Inc. (a) (b)		159,944		2,357,574
John Wiley & Sons, Inc. - Class A		30,665		1,440,335
				5,997,294
Metals & Mining—0.3%
Ferroglobe Representation & Warranty Insurance Trust (a) (c)		141,548		0
Haynes International, Inc.		37,282		984,245
				984,245
Multi-Utilities—1.2%
MDU Resources Group, Inc.		81,083		1,933,019
NorthWestern Corp.		42,410		2,520,850
				4,453,869
Multiline Retail—0.4%
Big Lots, Inc. (b)		50,203		1,451,871
Oil, Gas & Consumable Fuels—0.9%
PDC Energy, Inc. (a)		23,723		705,997
QEP Resources, Inc. (a)		86,445		486,685
SRC Energy, Inc. (a) (b)		196,779		924,861
Viper Energy Partners LP		42,325		1,102,143
				3,219,686
Pharmaceuticals—1.3%
Catalent, Inc. (a)		55,032		1,715,898
Horizon Pharma plc (a)		33,128		647,321
Prestige Consumer Healthcare, Inc. (a) (b)		57,057		1,761,920
Supernus Pharmaceuticals, Inc. (a) (b)		25,625		851,263
				4,976,402
Professional Services—1.7%
Huron Consulting Group, Inc. (a)		22,012		1,129,436
ICF International, Inc.		13,748		890,595
Insperity, Inc.		22,037		2,057,374
Korn/Ferry International		55,349		2,188,500
				6,265,905
Road & Rail—0.9%
Genesee & Wyoming, Inc. - Class A (a)		25,532		1,889,879
Old Dominion Freight Line, Inc. (b)		11,243		1,388,398
				3,278,277
Semiconductors & Semiconductor Equipment—3.0%
Advanced Energy Industries, Inc. (a)		36,828		1,581,026
Mellanox Technologies, Ltd. (a)		40,582		3,748,965

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Semiconductors & Semiconductor Equipment—(Continued)
MKS Instruments, Inc.		13,168	$	850,784
Monolithic Power Systems, Inc.		13,398		1,557,518
Semtech Corp. (a)		15,450		708,692
Silicon Laboratories, Inc. (a)		16,947		1,335,593
Ultra Clean Holdings, Inc. (a) (b)		80,315		680,268
Versum Materials, Inc.		31,932		885,155
				11,348,001
Software—6.5%
CommVault Systems, Inc. (a)		36,028		2,128,894
Cornerstone OnDemand, Inc. (a)		20,068		1,012,029
Envestnet, Inc. (a)		31,288		1,539,057
Five9, Inc. (a)		47,416		2,073,028
Globant S.A. (a)		16,707		940,938
Guidewire Software, Inc. (a) (b)		20,373		1,634,526
HubSpot, Inc. (a) (b)		11,750		1,477,327
LogMeIn, Inc.		18,215		1,485,798
Mimecast, Ltd. (a)		49,447		1,662,903
Q2 Holdings, Inc. (a)		37,413		1,853,814
Rapid7, Inc. (a)		50,857		1,584,704
RealPage, Inc. (a)		34,308		1,653,303
RingCentral, Inc. - Class A (a)		21,975		1,811,619
TiVo Corp.		101,535		955,444
Varonis Systems, Inc. (a)		17,976		950,930
Verint Systems, Inc. (a)		38,164		1,614,719
				24,379,033
Specialty Retail—0.9%
Aaron’s, Inc.		44,091		1,854,027
Genesco, Inc. (a) (b)		15,874		703,218
Sally Beauty Holdings, Inc. (a) (b)		48,199		821,793
				3,379,038
Technology Hardware, Storage & Peripherals—0.2%
Cray, Inc. (a)		42,608		919,907
Textiles, Apparel & Luxury Goods—1.3%
Columbia Sportswear Co.		20,182		1,697,104
Crocs, Inc. (a)		70,005		1,818,730
Steven Madden, Ltd.		42,525		1,286,807
				4,802,641
Thrifts & Mortgage Finance—1.3%
Essent Group, Ltd. (a)		20,174		689,547
Federal Agricultural Mortgage Corp. - Class C		21,608		1,305,987
Meta Financial Group, Inc.		62,223		1,206,504
OceanFirst Financial Corp.		78,960		1,777,390
				4,979,428
Trading Companies & Distributors—0.6%
BMC Stock Holdings, Inc. (a)		52,007		805,068
Trading Companies & Distributors—(Continued)
SiteOne Landscape Supply, Inc. (a) (b)		25,302		1,398,442
				2,203,510
Total Common Stocks (Cost $303,421,535)				368,371,555
Short-Term Investment—2.4%
Repurchase Agreement—2.4%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $9,242,118; collateralized by U.S. Treasury Note at 2.875%, maturing 10/31/23, with a market value of $9,428,124.		9,241,502		9,241,502
Total Short-Term Investments (Cost $9,241,502)				9,241,502
Securities Lending Reinvestments (d)—14.4%
Certificates of Deposit—6.9%
Banco Del Estado De Chile New York 2.820%, 1M LIBOR + 0.350%, 05/20/19 (e)		1,000,000		999,979
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (e)		1,500,000		1,500,598
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (e)		2,000,000		1,999,810
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (e)		1,000,000		999,598
Credit Agricole S.A. 2.799%, 1M LIBOR + 0.320%, 05/21/19 (e)		1,000,000		1,000,063
Credit Industriel et Commercial Zero Coupon, 01/25/19		987,228		998,300
Credit Industriel et Commercial (NY) 2.629%, 1M LIBOR + 0.250%, 02/05/19 (e)		1,500,000		1,500,038
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		2,000,000		1,999,852
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (e)		2,000,000		2,000,012
Royal Bank of Canada New York 2.650%, 1M LIBOR + 0.250%, 01/11/19 (e)		1,500,000		1,500,012
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (e)		2,000,000		1,999,942
2.717%, 3M LIBOR + 0.230%, 04/24/19 (e)		1,000,000		999,782
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (e)		2,000,000		1,999,266
2.700%, 02/25/19		1,000,000		1,000,092
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		992,778		994,570
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (e)		1,000,000		1,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (e)		2,500,000		2,502,168
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (e)		1,000,000		999,994
				25,994,076

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (d)—(Continued)

Security Description	Principal Amount*		Value
Commercial Paper—2.8%
Banco Santander S.A. 2.740%, 02/07/19		1,985,996	$	1,994,176
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (e)		1,000,000		1,000,000
ING Funding LLC 2.725%, 3M LIBOR + 0.110%, 05/10/19 (e)		3,000,000		2,999,646
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (e)		1,000,000		999,890
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (e)		1,500,000		1,500,367
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (e)		2,000,000		1,999,920
				10,493,999
Repurchase Agreements—4.4%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $4,030,667; collateralized by various Common Stock with an aggregate market value of $4,400,733.		4,000,000		4,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $1,002,713; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $1,088,319.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $201,503; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $204,000.		200,000		200,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $300,042; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $306,000.		300,000		300,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $400,055; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $408,000.		400,000		400,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $200,031; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $204,000.		200,000		200,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $3,681,233; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $3,754,190.		3,680,579		3,680,579
Repurchase Agreements—(Continued)
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $201,503; collateralized by various Common Stock with an aggregate market value of $220,000.		200,000		200,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $2,266,905; collateralized by various Common Stock with an aggregate market value of $2,475,000.		2,250,000		2,250,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $700,100; collateralized by various Common Stock with an aggregate market value of $779,249.		700,000		700,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $2,000,284; collateralized by various Common Stock with an aggregate market value of $2,226,425.		2,000,000		2,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $700,098; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $766,833.		700,000		700,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $600,084; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $657,286.		600,000		600,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $500,070; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $547,738.		500,000		500,000
				16,730,579
Time Deposit—0.3%
Royal Bank of Canada 2.420%, 01/02/19		1,000,000		1,000,000
Total Securities Lending Reinvestments (Cost $54,217,957)				54,218,654
Total Investments—114.3% (Cost $366,880,994)				431,831,711
Other assets and liabilities (net)—(14.3)%				(54,096,480	)
Net Assets—100.0%			$	377,735,231

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $53,891,134 and the collateral received consisted of cash in the amount of $54,196,580 andnon-cash collateral with a value of $573,558. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe- keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c)	Illiquid security. As of December 31, 2018, these securities represent 0.0% of net assets.
(d)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(e)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Aerospace & Defense	$	8,483,387	$	—	$	—	$	8,483,387
Auto Components		5,340,238		—		—		5,340,238
Banks		44,220,810		—		—		44,220,810
Beverages		3,174,424		—		—		3,174,424
Biotechnology		5,969,343		—		—		5,969,343
Building Products		7,308,912		—		—		7,308,912
Capital Markets		5,101,090		—		—		5,101,090
Chemicals		10,612,255		—		—		10,612,255
Commercial Services & Supplies		9,026,359		—		—		9,026,359
Communications Equipment		2,161,480		—		—		2,161,480
Construction & Engineering		1,721,390		—		—		1,721,390
Consumer Finance		2,905,058		—		—		2,905,058
Distributors		2,336,719		—		—		2,336,719
Diversified Consumer Services		9,683,139		—		—		9,683,139
Diversified Financial Services		1,255,923		—		—		1,255,923
Diversified Telecommunication Services		1,470,636		—		—		1,470,636
Electric Utilities		3,667,554		—		—		3,667,554
Electrical Equipment		3,506,270		—		—		3,506,270
Electronic Equipment, Instruments & Components		8,651,817		—		—		8,651,817
Energy Equipment & Services		5,202,754		—		—		5,202,754
Entertainment		1,884,233		—		—		1,884,233
Equity Real Estate Investment Trusts		19,584,132		—		—		19,584,132
Food & Staples Retailing		1,215,752		—		—		1,215,752

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy��(Continued)

Description	Level 1		Level 2			Level 3		Total
Food Products	$	9,782,374	$	—		$	—	$	9,782,374
Health Care Equipment & Supplies		15,198,099		—			—		15,198,099
Health Care Providers & Services		7,733,371		—			—		7,733,371
Health Care Technology		6,734,661		—			—		6,734,661
Hotels, Restaurants & Leisure		9,381,888		—			—		9,381,888
Household Durables		2,407,809		—			—		2,407,809
Independent Power and Renewable Electricity Producers		4,833,210		—			—		4,833,210
Industrial Conglomerates		2,140,675		—			—		2,140,675
Insurance		14,140,330		—			—		14,140,330
Interactive Media & Services		653,087		—			—		653,087
Internet & Direct Marketing Retail		916,076		—			—		916,076
IT Services		20,216,736		—			—		20,216,736
Leisure Products		886,739		—			—		886,739
Life Sciences Tools & Services		4,982,455		—			—		4,982,455
Machinery		20,069,940		—			—		20,069,940
Marine		1,171,323		—			—		1,171,323
Media		5,997,294		—			—		5,997,294
Metals & Mining		984,245		0			—		984,245
Multi-Utilities		4,453,869		—			—		4,453,869
Multiline Retail		1,451,871		—			—		1,451,871
Oil, Gas & Consumable Fuels		3,219,686		—			—		3,219,686
Pharmaceuticals		4,976,402		—			—		4,976,402
Professional Services		6,265,905		—			—		6,265,905
Road & Rail		3,278,277		—			—		3,278,277
Semiconductors & Semiconductor Equipment		11,348,001		—			—		11,348,001
Software		24,379,033		—			—		24,379,033
Specialty Retail		3,379,038		—			—		3,379,038
Technology Hardware, Storage & Peripherals		919,907		—			—		919,907
Textiles, Apparel & Luxury Goods		4,802,641		—			—		4,802,641
Thrifts & Mortgage Finance		4,979,428		—			—		4,979,428
Trading Companies & Distributors		2,203,510		—			—		2,203,510
Total Common Stocks		368,371,555		0			—		368,371,555
Total Short-Term Investment*		—		9,241,502			—		9,241,502
Total Securities Lending Reinvestments*		—		54,218,654			—		54,218,654
Total Investments	$	368,371,555	$	63,460,156		$	—	$	431,831,711
Collateral for Securities Loaned (Liability)	$	—	$	(54,196,580	)	$	—	$	(54,196,580	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	431,831,711
Receivable for:
Investments sold		540,622
Fund shares sold		597,355
Dividends and interest		330,413
Prepaid expenses		1,269
Total Assets		433,301,370
Liabilities
Collateral for securities loaned		54,196,580
Payables for:
Investments purchased		758,789
Fund shares redeemed		87,534
Accrued Expenses:
Management fees		273,505
Distribution and service fees		31,659
Deferred trustees’ fees		111,633
Other expenses		106,439
Total Liabilities		55,566,139
Net Assets	$	377,735,231
Net Assets Consist of:
Paid in surplus	$	268,613,885
Distributable earnings (Accumulated losses)		109,121,346
Net Assets	$	377,735,231
Net Assets
Class A	$	223,908,195
Class B		131,063,423
Class E		22,763,613
Capital Shares Outstanding*
Class A		959,371
Class B		594,117
Class E		100,746
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	233.39
Class B		220.60
Class E		225.95

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $366,880,994.
(b)	Includes securities loaned at value of $53,891,134.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	4,710,740
Interest		72,126
Securities lending income		432,669
Total investment income		5,215,535
Expenses
Management fees		4,153,978
Administration fees		22,445
Custodian and accounting fees		51,668
Distribution and service fees—Class B		404,509
Distribution and service fees—Class E		43,302
Audit and tax services		44,663
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		69,385
Insurance		2,965
Miscellaneous		14,370
Total expenses		4,886,336
Less management fee waiver		(361,553	)
Less broker commission recapture		(19,543	)
Net expenses		4,505,240
Net Investment Income		710,295
Net Realized and Unrealized Gain (Loss)
Net realized gain on investments		43,535,043
Net change in unrealized depreciation on investments		(89,313,058	)
Net realized and unrealized loss		(45,778,015	)
Net Decrease in Net Assets From Operations	$	(45,067,720	)

(a) Net of foreign withholding taxes of $13,639.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	710,295		$	333,261
Net realized gain		43,535,043			47,593,068
Net change in unrealized appreciation (depreciation)		(89,313,058	)		17,357,192
Increase (decrease) in net assets from operations		(45,067,720	)		65,283,521
From Distributions to Shareholders(a)
Class A		(27,661,814	)		(17,838,959	)
Class B		(17,342,821	)		(11,366,745	)
Class E		(3,031,392	)		(2,080,417	)
Total distributions		(48,036,027	)		(31,286,121	)
Decrease in net assets from capital share transactions		(4,654,482	)		(18,769,189	)
Total increase (decrease) in net assets		(97,758,229	)		15,228,211
Net Assets
Beginning of period		475,493,460			460,265,249
End of period	$	377,735,231		$	475,493,460	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		16,347		$	4,466,196			40,523		$	11,185,340
Reinvestments		97,804			27,661,814			67,746			17,838,959
Redemptions		(100,405	)		(28,654,796	)		(129,901	)		(35,696,438	)
Net increase (decrease)		13,746		$	3,473,214			(21,632	)	$	(6,672,139	)
Class B
Sales		19,187		$	4,858,923			30,477		$	7,974,188
Reinvestments		64,785			17,342,821			45,253			11,366,745
Redemptions		(104,241	)		(28,540,326	)		(108,518	)		(28,690,239	)
Net decrease		(20,269	)	$	(6,338,582	)		(32,788	)	$	(9,349,306	)
Class E
Sales		3,267		$	847,332			4,076		$	1,100,417
Reinvestments		11,062			3,031,392			8,118			2,080,417
Redemptions		(20,683	)		(5,667,838	)		(22,067	)		(5,928,578	)
Net decrease		(6,354	)	$	(1,789,114	)		(9,873	)	$	(2,747,744	)
Decrease derived from capital shares transactions				$	(4,654,482	)				$	(18,769,189	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(766,898	)	$	(17,072,061	)
Class B		(115,507	)		(11,251,238	)
Class E		(48,669	)		(2,031,748	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $(83,127) as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	290.82		$	270.77		$	250.78		$	290.12		$	322.61
Income (Loss) from Investment Operations
Net investment income (a)		0.72			0.48			1.15	(b)		1.19			0.91
Net realized and unrealized gain (loss)		(27.59	)		38.81			43.25			(2.32	)		8.06
Total income (loss) from investment operations		(26.87	)		39.29			44.40			(1.13	)		8.97
Less Distributions
Distributions from net investment income		(0.06	)		(0.83	)		(0.85	)		(0.46	)		(0.14	)
Distributions from net realized capital gains		(30.50	)		(18.41	)		(23.56	)		(37.75	)		(41.32	)
Total distributions		(30.56	)		(19.24	)		(24.41	)		(38.21	)		(41.46	)
Net Asset Value, End of Period	$	233.39		$	290.82		$	270.77		$	250.78		$	290.12
Total Return (%) (c)		(11.07	)		15.24			19.27			(1.50	)		3.76
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.96			0.96			0.96			0.96			0.96
Net ratio of expenses to average net assets (%) (d)		0.88			0.89			0.88			0.88			0.88
Ratio of net investment income to average net assets (%)		0.25			0.17			0.47	(b)		0.43			0.31
Portfolio turnover rate (%)		30			28			34			36			35
Net assets, end of period (in millions)	$	223.9		$	275.0		$	261.9		$	241.5		$	269.1
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	277.03		$	258.82		$	240.67		$	280.08		$	313.49
Income (Loss) from Investment Operations
Net investment income (loss) (a)		(0.00	)(e)		(0.21	)		0.51	(b)		0.48			0.18
Net realized and unrealized gain (loss)		(25.93	)		37.02			41.37			(2.14	)		7.73
Total income (loss) from investment operations		(25.93	)		36.81			41.88			(1.66	)		7.91
Less Distributions
Distributions from net investment income		0.00			(0.19	)		(0.17	)		0.00			0.00
Distributions from net realized capital gains		(30.50	)		(18.41	)		(23.56	)		(37.75	)		(41.32	)
Total distributions		(30.50	)		(18.60	)		(23.73	)		(37.75	)		(41.32	)
Net Asset Value, End of Period	$	220.60		$	277.03		$	258.82		$	240.67		$	280.08
Total Return (%) (c)		(11.30	)		14.96			18.97			(1.74	)		3.50
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.21			1.21			1.21			1.21			1.21
Net ratio of expenses to average net assets (%) (d)		1.13			1.14			1.13			1.13			1.13
Ratio of net investment income (loss) to average net assets (%)		(0.00	)(f)		(0.08	)		0.22	(b)		0.18			0.06
Portfolio turnover rate (%)		30			28			34			36			35
Net assets, end of period (in millions)	$	131.1		$	170.2		$	167.5		$	157.9		$	179.5

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	282.79		$	263.82		$	244.89		$	284.11		$	317.10
Income (Loss) from Investment Operations
Net investment income (a)		0.27			0.05			0.76	(b)		0.76			0.46
Net realized and unrealized gain (loss)		(26.61	)		37.77			42.15			(2.23	)		7.87
Total income (loss) from investment operations		(26.34	)		37.82			42.91			(1.47	)		8.33
Less Distributions
Distributions from net investment income		0.00			(0.44	)		(0.42	)		0.00			0.00
Distributions from net realized capital gains		(30.50	)		(18.41	)		(23.56	)		(37.75	)		(41.32	)
Total distributions		(30.50	)		(18.85	)		(23.98	)		(37.75	)		(41.32	)
Net Asset Value, End of Period	$	225.95		$	282.79		$	263.82		$	244.89		$	284.11
Total Return (%) (c)		(11.21	)		15.07			19.09			(1.64	)		3.60
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.11			1.11			1.11			1.11			1.11
Net ratio of expenses to average net assets (%) (d)		1.03			1.04			1.03			1.03			1.03
Ratio of net investment income to average net assets (%)		0.10			0.02			0.31	(b)		0.28			0.16
Portfolio turnover rate (%)		30			28			34			36			35
Net assets, end of period (in millions)	$	22.8		$	30.3		$	30.9		$	29.1		$	33.9

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to $0.03 per share and 0.01% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(e)	Net investment income (loss) was less than $0.01.
(f)	Ratio of net investment income (loss) to average net assets was less than 0.01%.

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Loomis Sayles Small Cap Core Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-16

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is

BHFTII-17

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $9,241,502. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $16,730,579. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its

BHFTII-18

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	132,906,482	$	0	$	183,008,160

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$4,153,978		0.900	%	Of the first $500 million
		0.850	%	On amounts in excess of $500 million

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Loomis, Sayles & Company, L.P. (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers- Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.050%	Of the first $200 million
0.100%	On the next $300 million
0.050%	On amounts in excess of $500 million

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

BHFTII-19

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Distribution and Service Fees- The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	366,559,230
Gross unrealized appreciation		92,663,277
Gross unrealized depreciation		(27,390,796	)
Net unrealized appreciation (depreciation)	$	65,272,481

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$469,010	$	931,074	$	47,567,017	$	30,355,047	$	48,036,027	$	31,286,121

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$386,930	$	43,573,565	$	65,272,481	$	—	$	109,232,976

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

BHFTII-20

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-21

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Loomis Sayles Small Cap Core Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Loomis Sayles Small Cap Core Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Core Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-22

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-23

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-24

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-25

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-26

Brighthouse Funds Trust II

Loomis Sayles Small Cap Core Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Loomis Sayles Small Cap Core Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Loomis, Sayles & Company, L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of one of its Performance Universes for the five-year period ended June 30, 2018, and underperformed the median of the same Performance Universe for theone-year and three-year periods ended June 30, 2018. The Board also noted that the Portfolio underperformed the median of its other Performance Universe for theone-, three-, and five-year periods ended June 30, 2018. The Board also considered that the Portfolio underperformed the average of its Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board also noted that the Portfolio outperformed the average of a different, but still comparable, Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the Russell 2000 Index, for theone-, three-, and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also noted that the Portfolio’s actual management fees were above the Expense Universe median andSub-advised Expense Universe median, and below the Expense Group median. The Board considered that the Portfolio’s total expenses (exclusive of12b-1 fees) were equal to the Expense Universe median, below the Expense Group median and above theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Universe and theSub-advised Expense Group at the Portfolio’s current size.

BHFTII-27

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Managed by Loomis, Sayles & Company, L.P.

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Loomis Sayles Small Cap Growth Portfolio returned 0.55%, 0.28%, and 0.43%, respectively. The Portfolio’s benchmark, the Russell 2000 Growth Index¹, returned-9.31%.

MARKET ENVIRONMENT / CONDITIONS

After a somewhat weak and volatile start to 2018, domestic equity markets returned to broad-based gains during the first half of the year. Despite numerous concerns including the aging economic recovery, Federal Reserve (the “Fed”) interest rate normalization and intensifying threats of import tariffs and trade wars, investors chose to focus on the current healthy state of the U.S. economy and the improved corporate earnings outlook. Against this backdrop of tax reform, trade wars, U.S. dollar strength, and weaker international growth, domestically focused U.S. small cap stocks benefited from strong inflows. The first half of the year saw material outperformance from the smallest of the small cap stocks and from small cap growth stocks far exceeding their value counterparts.

Starting late in the third quarter, market leadership began to change. Stocks tumbled during the final quarter of 2018, with concerns about continued Fed policy tightening, trade wars and weaker global growth all contributing to a negative turn in investor sentiment. The market decline was broad based and comprehensive across market capitalization and investment style.Small-cap stocks were particularly weak, continuing a trend that started during the third quarter. The sharp decline more than offset the advantage small caps had over large caps during the first half of the calendar year. The fourth quartersell-off also completely reversed the prioryear-to-date market gains and turned what appeared in late August to be a dynamic and attractive return year for U.S. equities, into modest overall losses. Economic drivers and investor sentiment also shifted, which resulted in distinct changes in market leadership.

The disparity of returns between market capitalizations and investment style proved meaningful for the year. The Russell 2000 Small Cap Index produced a-11.0% return, well below the-4.4% return of the S&P 500 Index. For the calendar year of 2018,small-cap growth stocks outperformed value stocks as the Russell 2000 Growth Index returned-9.3% compared to the Russell 2000 Value Index return of-12.9%.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio outperformed the Russell 2000 Growth Index during the year, principally due to stock selection. Positive stock selection in the Health Care and Consumer Discretionary sectors aided relative results. Conversely, the Portfolio’s lack of exposure to the Real Estate sector and stock selection in the Consumer Staples sector detracted from relative performance.

The Portfolio’s top contributors to performance were Five9, WingStop and Ablynx. Five9 is the largest cloud contact center solutions provider. The company reported solid results during the year on record revenues and the company executed well in a market that continued to benefit from the conversion ofon-premise legacy solutions to cloud-based solutions. WingStop is a rapidly growing fast casual restaurant chain. The company has reported solid same store sales growth and new store growth that has exceeded expectations. Biopharmaceutical company Ablynx announced it would be acquired during the year by Sanofi at an attractive premium.

The largest detractors from the Portfolio’s performance were WillScot Corp., Installed Building Products, and Patrick Industries. WillScot, the North American market leader in modular space rental solutions, issued stock to current warrant holders in a significant down market and created selling pressure on the stock price. The stock triggered our stop loss and was sold from the Portfolio during the period. Installed Building Products is the second largest installer of residential insulation in the U.S. The company experienced some issues impacting gross margins over the course of the year and came under the selling pressure that impacted most housing-related stocks. The stock was sold from the Portfolio over the period. Patrick Industries manufactures and supplies products to the recreational vehicle (“RV”), manufactured home and industrial markets. The company reported relatively good results over the course of the year, but the lagging RV cycle weighed on the stock. We exited the position over the period after our stop-loss discipline was triggered.

As of December 31, 2018, the largest absolute sector weight in the Portfolio was Health Care. The Portfolio’s allocation to the Health Care sector increased over the year as we added selectively to our health care technology and provider holdings. This is an area we continued to find attractive investment opportunities. However, on a relative basis, we remained underweight Health Care at period end.

BHFTII-1

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Managed by Loomis, Sayles & Company, L.P.

Portfolio Manager Commentary*—(Continued)

The Portfolio’s largest relative overweight was to the Information Technology (“IT”) sector, with the majority of that exposure to IT services and software. Both Industrials and Financials exposure declined over the year. Within Industrials, our stop-loss discipline caused us to exit a few names and within Financials the Portfolio’s exposure to banks declined.

Mark Burns

John Slavik

Portfolio Managers

Loomis, Sayles & Company, L.P.

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 GROWTH INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Loomis Sayles Small Cap Growth Portfolio
Class A		0.55		6.92		15.07
Class B		0.28		6.64		14.79
Class E		0.43		6.75		14.92
Russell 2000 Growth Index		-9.31		5.14		13.52

¹ The Russell 2000 Growth Index is an unmanaged measure of performance of those Russell 2000 companies (small capitalization companies) that have higher price-to book ratios and higher forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Planet Fitness, Inc.- Class A		1.6
PRA Health Sciences, Inc.		1.6
Five9, Inc.		1.6
Vocera Communications, Inc.		1.5
Grand Canyon Education, Inc.		1.5
Pool Corp.		1.5
Wingstop, Inc.		1.5
Wright Medical Group NV		1.5
Q2 Holdings, Inc.		1.4
Kinsale Capital Group, Inc.		1.4

Top Sectors

	% of Net Assets
Health Care		25.0
Information Technology		23.8
Industrials		16.9
Consumer Discretionary		15.4
Financials		8.1
Consumer Staples		2.8
Communication Services		2.1
Energy		1.5
Materials		1.3

BHFTII-3

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Loomis Sayles Small Cap Growth Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.87	%	$	1,000.00	$	874.70	$	4.11
	Hypothetical*		0.87	%	$	1,000.00	$	1,020.82	$	4.43
Class B (a)	Actual		1.12	%	$	1,000.00	$	873.50	$	5.29
	Hypothetical*		1.12	%	$	1,000.00	$	1,019.56	$	5.70
Class E (a)	Actual		1.03	%	$	1,000.00	$	873.50	$	4.86
	Hypothetical*		1.03	%	$	1,000.00	$	1,020.01	$	5.24

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—96.9% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—3.5%
AAR Corp.		78,396	$	2,927,307
Astronics Corp. (a)		72,261		2,200,347
Hexcel Corp. (b)		58,964		3,380,996
Mercury Systems, Inc. (a)		47,299		2,236,770
				10,745,420
Auto Components—0.5%
Stoneridge, Inc. (a)		65,473		1,613,909
Banks—2.6%
Chemical Financial Corp.		53,407		1,955,230
Pacific Premier Bancorp, Inc. (a)		59,162		1,509,814
Pinnacle Financial Partners, Inc.		48,409		2,231,655
UMB Financial Corp.		38,521		2,348,626
				8,045,325
Beverages—0.8%
MGP Ingredients, Inc. (b)		40,891		2,332,832
Biotechnology—4.6%
Aimmune Therapeutics, Inc. (a) (b)		81,175		1,941,706
Argenx SE (ADR) (a)		28,381		2,726,563
Blueprint Medicines Corp. (a)		33,669		1,815,096
Genomic Health, Inc. (a)		54,200		3,491,022
Myriad Genetics, Inc. (a)		67,997		1,976,673
Xencor, Inc. (a)		59,090		2,136,694
				14,087,754
Building Products—1.6%
AAON, Inc.		30,068		1,054,184
Trex Co., Inc. (a)		63,294		3,757,132
				4,811,316
Capital Markets—0.5%
Artisan Partners Asset Management, Inc. - Class A		70,295		1,554,222
Chemicals—1.3%
Ingevity Corp. (a)		46,749		3,912,424
Construction & Engineering—0.8%
Primoris Services Corp.		127,292		2,435,096
Consumer Finance—1.4%
Green Dot Corp. - Class A (a)		51,819		4,120,647
Distributors—1.5%
Pool Corp.		30,781		4,575,596
Diversified Consumer Services—5.1%
Bright Horizons Family Solutions, Inc. (a)		28,886		3,219,345
Chegg, Inc. (a) (b)		133,214		3,785,942
Grand Canyon Education, Inc. (a)		48,102		4,624,526
Laureate Education, Inc. - Class A (a)		264,779		4,035,232
				15,665,045
Diversified Telecommunication Services—1.1%
Cogent Communications Holdings, Inc.		76,571	$	3,461,775
Electrical Equipment—1.3%
Generac Holdings, Inc. (a)		79,641		3,958,158
Electronic Equipment, Instruments & Components—0.4%
Novanta, Inc. (a)		19,079		1,201,977
Energy Equipment & Services—1.0%
Cactus, Inc. - Class A (a)		105,659		2,896,113
Entertainment—1.0%
IMAX Corp. (a)		154,142		2,899,411
Food & Staples Retailing—0.9%
Chefs’ Warehouse, Inc. (The) (a)		89,725		2,869,405
Food Products—1.1%
Freshpet, Inc. (a)		105,616		3,396,611
Health Care Equipment & Supplies—7.5%
AtriCure, Inc. (a)		125,975		3,854,835
Insulet Corp. (a) (b)		51,656		4,097,354
iRhythm Technologies, Inc. (a)		46,280		3,215,534
Merit Medical Systems, Inc. (a)		57,288		3,197,243
Penumbra, Inc. (a) (b)		18,790		2,296,138
Tactile Systems Technology, Inc. (a) (b)		41,585		1,894,197
Wright Medical Group NV (a)		164,561		4,479,351
				23,034,652
Health Care Providers & Services—4.2%
Amedisys, Inc. (a)		31,138		3,646,571
AMN Healthcare Services, Inc. (a)		68,021		3,854,070
BioTelemetry, Inc. (a)		63,474		3,790,667
LHC Group, Inc. (a)		16,444		1,543,763
				12,835,071
Health Care Technology—5.2%
Evolent Health, Inc. - Class A (a) (b)		104,780		2,090,361
HMS Holdings Corp. (a)		64,185		1,805,524
Medidata Solutions, Inc. (a) (b)		61,941		4,176,062
Teladoc Health, Inc. (a) (b)		62,572		3,101,694
Vocera Communications, Inc. (a) (b)		119,696		4,710,038
				15,883,679
Hotels, Restaurants & Leisure—3.1%
Planet Fitness, Inc. - Class A (a)		93,047		4,989,180
Wingstop, Inc.		70,421		4,520,324
				9,509,504
Insurance—3.1%
Goosehead Insurance, Inc. - Class A (a) (b)		84,966		2,233,756
Kinsale Capital Group, Inc.		77,216		4,290,121
Trupanion, Inc. (a) (b)		110,361		2,809,791
				9,333,668

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Internet & Direct Marketing Retail—0.7%
Duluth Holdings, Inc. - Class B (a) (b)		85,009	$	2,144,777
IT Services—6.5%
Euronet Worldwide, Inc. (a)		32,628		3,340,455
EVERTEC, Inc.		70,178		2,014,109
Evo Payments, Inc. - Class A (a) (b)		131,435		3,242,501
InterXion Holding NV (a)		73,615		3,986,988
Virtusa Corp. (a)		80,760		3,439,568
WNS Holdings, Ltd. (ADR) (a)		93,931		3,875,593
				19,899,214
Leisure Products—0.7%
Malibu Boats, Inc. - Class A (a)		59,982		2,087,374
Life Sciences Tools & Services—2.3%
NeoGenomics, Inc. (a)		153,712		1,938,308
PRA Health Sciences, Inc. (a)		53,677		4,936,137
				6,874,445
Machinery—6.5%
Albany International Corp. - Class A		64,341		4,016,808
Chart Industries, Inc. (a)		35,661		2,319,035
Harsco Corp. (a)		166,770		3,312,052
Kornit Digital, Ltd. (a) (b)		121,200		2,268,864
Proto Labs, Inc. (a)		33,758		3,807,565
RBC Bearings, Inc. (a)		30,239		3,964,333
				19,688,657
Oil, Gas & Consumable Fuels—0.5%
PDC Energy, Inc. (a)		55,842		1,661,858
Pharmaceuticals—1.2%
Horizon Pharma plc (a)		78,967		1,543,015
Supernus Pharmaceuticals, Inc. (a) (b)		60,320		2,003,831
				3,546,846
Professional Services—1.6%
Huron Consulting Group, Inc. (a)		52,141		2,675,355
ICF International, Inc.		32,706		2,118,694
				4,794,049
Semiconductors & Semiconductor Equipment—2.9%
MKS Instruments, Inc.		30,997		2,002,716
Monolithic Power Systems, Inc.		31,539		3,666,409
Silicon Laboratories, Inc. (a)		39,892		3,143,888
				8,813,013
Software—14.0%
Cornerstone OnDemand, Inc. (a)		47,568		2,398,854
Envestnet, Inc. (a)		73,651		3,622,893
Five9, Inc. (a)		111,613		4,879,720
Globant S.A. (a)		39,827		2,243,057
Software—(Continued)
Guidewire Software, Inc. (a)		47,958		3,847,670
HubSpot, Inc. (a) (b)		27,659		3,477,566
Mimecast, Ltd. (a)		116,394		3,914,330
Q2 Holdings, Inc. (a)		88,067		4,363,720
Rapid7, Inc. (a)		119,714		3,730,288
RealPage, Inc. (a)		80,760		3,891,825
RingCentral, Inc. - Class A (a)		51,729		4,264,539
Varonis Systems, Inc. (a)		42,317		2,238,569
				42,873,031
Textiles, Apparel & Luxury Goods—3.7%
Columbia Sportswear Co.		47,506		3,994,780
Crocs, Inc. (a)		164,785		4,281,114
Steven Madden, Ltd. (b)		100,102		3,029,086
				11,304,980
Thrifts & Mortgage Finance—0.5%
Essent Group, Ltd. (a)		47,488		1,623,140
Trading Companies & Distributors—1.7%
BMC Stock Holdings, Inc. (a)		122,421		1,895,077
SiteOne Landscape Supply, Inc. (a) (b)		59,559		3,291,826
				5,186,903
Total Common Stocks (Cost $234,027,393)				295,677,897
Short-Term Investment—3.3%
Repurchase Agreement—3.3%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $10,157,948; collateralized by U.S. Treasury Note at 2.125%, maturing 03/31/24, with a market value of $10,363,447.		10,157,271		10,157,271
Total Short-Term Investments (Cost $10,157,271)				10,157,271
Securities Lending Reinvestments (c)—14.9%
Certificates of Deposit—7.8%
Banco Del Estado De Chile New York 2.820%, 1M LIBOR + 0.350%, 05/20/19 (d)		1,000,000		999,979
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (d)		1,250,000		1,250,499
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		3,000,000		2,999,715
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (d)		1,000,000		999,598
Credit Agricole S.A. 2.799%, 1M LIBOR + 0.320%, 05/21/19 (d)		1,000,000		1,000,063
Credit Industriel et Commercial Zero Coupon, 01/25/19		987,228		998,300

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Credit Industriel et Commercial (NY) 2.629%, 1M LIBOR + 0.250%, 02/05/19 (d)		1,500,000	$	1,500,037
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		1,000,000		999,926
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (d)		1,000,000		1,000,006
Royal Bank of Canada New York 2.650%, 1M LIBOR + 0.250%, 01/11/19 (d)		2,000,000		2,000,016
Standard Chartered plc
2.717%, 3M LIBOR + 0.230%, 04/24/19 (d)		1,000,000		999,782
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		1,500,000		1,499,449
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		1,985,555		1,989,140
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (d)		1,500,000		1,500,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (d)		2,000,000		2,001,735
2.730%, 3M LIBOR + 0.210%, 10/25/19 (d)		500,000		500,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		1,500,000		1,499,991
				23,738,236
Commercial Paper—1.8%
Banco Santander S.A. 2.740%, 02/07/19		992,998		997,088
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (d)		1,000,000		1,000,000
ING Funding LLC 2.725%, 3M LIBOR + 0.110%, 05/10/19 (d)		2,000,000		1,999,764
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		1,500,000		1,500,368
				5,497,220
Repurchase Agreements—5.3%
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.660%, due on 01/07/19 with a maturity value of $1,000,517; collateralized by U.S. Treasury Obligations with rates ranging from 0.625% - 3.125%, maturity dates ranging from 02/15/42 - 02/15/46, and various Common Stock with an aggregate market value of $1,054,286.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $1,002,713; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $1,088,319.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $201,503; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $204,000.		200,000		200,000
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $100,014; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $102,000.		100,000		100,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $200,028; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $204,000.		200,000		200,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $100,015; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $102,000.		100,000		100,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $1,344,768; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $1,371,420.		1,344,529		1,344,529
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $503,757; collateralized by various Common Stock with an aggregate market value of $550,000.		500,000		500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $3,274,418; collateralized by various Common Stock with an aggregate market value of $3,575,000.		3,250,000		3,250,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $2,000,284; collateralized by various Common Stock with an aggregate market value of $2,226,425.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $1,000,504; collateralized by various Common Stock with an aggregate market value of $1,113,322.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $1,500,755; collateralized by various Common Stock with an aggregate market value of $1,669,983.		1,500,000		1,500,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $1,200,597; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,314,571.		1,200,000		1,200,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $1,500,747; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,643,214.		1,500,000		1,500,000

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $1,200,597; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,314,571.		1,200,000	$	1,200,000
				16,094,529
Total Securities Lending Reinvestments (Cost $45,329,110)				45,329,985
Total Investments—115.1% (Cost $289,513,774)				351,165,153
Other assets and liabilities (net)—(15.1)%				(45,959,842	)
Net Assets—100.0%			$	305,205,311

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $45,992,792 and the collateral received consisted of cash in the amount of $45,310,310 andnon-cash collateral with a value of $1,379,640. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe- keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Total Common Stocks*	$	295,677,897	$	—		$	—	$	295,677,897
Total Short-Term Investment*		—		10,157,271			—		10,157,271
Total Securities Lending Reinvestments*		—		45,329,985			—		45,329,985
Total Investments	$	295,677,897	$	55,487,256		$	—	$	351,165,153
Collateral for Securities Loaned (Liability)	$	—	$	(45,310,310	)	$	—	$	(45,310,310	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	351,165,153
Receivable for:
Investments sold		1,272,614
Fund shares sold		145,667
Dividends and interest		21,776
Prepaid expenses		1,027
Total Assets		352,606,237
Liabilities
Collateral for securities loaned		45,310,310
Payables for:
Investments purchased		1,588,272
Fund shares redeemed		76,021
Accrued Expenses:
Management fees		217,520
Distribution and service fees		13,606
Deferred trustees’ fees		111,915
Other expenses		83,282
Total Liabilities		47,400,926
Net Assets	$	305,205,311
Net Assets Consist of:
Paid in surplus	$	185,967,958
Distributable earnings (Accumulated losses)		119,237,353
Net Assets	$	305,205,311
Net Assets
Class A	$	240,366,656
Class B		57,795,817
Class E		7,042,838
Capital Shares Outstanding*
Class A		18,220,007
Class B		4,728,686
Class E		557,064
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	13.19
Class B		12.22
Class E		12.64

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $289,513,774.
(b)	Includes securities loaned at value of $45,992,792.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends	$	1,686,473
Non-cash dividends		584,041
Interest		86,703
Securities lending income		540,734
Total investment income		2,897,951
Expenses
Management fees		3,311,802
Administration fees		19,459
Custodian and accounting fees		44,013
Distribution and service fees—Class B		171,680
Distribution and service fees—Class E		11,839
Audit and tax services		44,663
Legal		45,316
Trustees’ fees and expenses		33,733
Shareholder reporting		31,896
Insurance		2,401
Miscellaneous		13,600
Total expenses		3,730,402
Less management fee waiver		(317,978	)
Less broker commission recapture		(18,196	)
Net expenses		3,394,228
Net Investment Loss		(496,277	)
Net Realized and Unrealized Gain (Loss)
Net realized gain on investments		58,287,716
Net change in unrealized depreciation on investments		(47,565,860	)
Net realized and unrealized gain		10,721,856
Net Increase in Net Assets From Operations	$	10,225,579

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment loss	$	(496,277	)	$	(1,808,190	)
Net realized gain		58,287,716			51,004,809
Net change in unrealized appreciation (depreciation)		(47,565,860	)		37,593,815
Increase in net assets from operations		10,225,579			86,790,434
From Distributions to Shareholders (a)
Class A		(38,694,674	)		(13,532,335	)
Class B		(9,723,909	)		(3,071,571	)
Class E		(1,049,323	)		(330,190	)
Total distributions		(49,467,906	)		(16,934,096	)
Decrease in net assets from capital share transactions		(26,909,667	)		(45,566,602	)
Total increase (decrease) in net assets		(66,151,994	)		24,289,736
Net Assets
Beginning of period		371,357,305			347,067,569
End of period	$	305,205,311		$	371,357,305	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		614,073		$	9,428,569			378,211		$	5,066,708
Reinvestments		2,486,804			38,694,674			1,017,469			13,532,335
Redemptions		(4,771,409	)		(76,231,596	)		(4,198,642	)		(57,777,599	)
Net decrease		(1,670,532	)	$	(28,108,353	)		(2,802,962	)	$	(39,178,556	)
Class B
Sales		576,123		$	8,362,589			275,626		$	3,546,325
Reinvestments		673,401			9,723,909			245,922			3,071,571
Redemptions		(1,220,790	)		(17,664,271	)		(979,589	)		(12,652,405	)
Net increase (decrease)		28,734		$	422,227			(458,041	)	$	(6,034,509	)
Class E
Sales		123,531		$	1,861,145			43,788		$	577,129
Reinvestments		70,330			1,049,323			25,696			330,190
Redemptions		(145,020	)		(2,134,009	)		(95,500	)		(1,260,856	)
Net increase (decrease)		48,841		$	776,459			(26,016	)	$	(353,537	)
Decrease derived from capital shares transactions				$	(26,909,667	)				$	(45,566,602	)

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were from net realized capital gains.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $(116,751) as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.98		$	12.36		$	13.07		$	14.70		$	16.55
Income (Loss) from Investment Operations
Net investment loss (a)		(0.01	)		(0.06	)		(0.00	)(b)(c)		(0.04	)		(0.06	)
Net realized and unrealized gain		0.43			3.32			0.69			0.47			0.11
Total income (loss) from investment operations		0.42			3.26			0.69			0.43			0.05
Less Distributions
Distributions from net realized capital gains		(2.21	)		(0.64	)		(1.40	)		(2.06	)		(1.90	)
Total distributions		(2.21	)		(0.64	)		(1.40	)		(2.06	)		(1.90	)
Net Asset Value, End of Period	$	13.19		$	14.98		$	12.36		$	13.07		$	14.70
Total Return (%) (d)		0.55			27.04			6.21			1.73			1.22
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.96			0.97			0.96			0.95			0.95
Net ratio of expenses to average net assets (%) (e)		0.88			0.88			0.87			0.86			0.86
Ratio of net investment loss to average net assets (%)		(0.09	)		(0.45	)		(0.00	)(c)(f)		(0.26	)		(0.40	)
Portfolio turnover rate (%)		44			40			53			64			56
Net assets, end of period (in millions)	$	240.4		$	298.0		$	280.6		$	310.7		$	355.8
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.05		$	11.66		$	12.43		$	14.11		$	16.01
Income (Loss) from Investment Operations
Net investment loss (a)		(0.05	)		(0.09	)		(0.03	)(c)		(0.07	)		(0.09	)
Net realized and unrealized gain		0.43			3.12			0.66			0.45			0.09
Total income (loss) from investment operations		0.38			3.03			0.63			0.38			0.00
Less Distributions
Distributions from net realized capital gains		(2.21	)		(0.64	)		(1.40	)		(2.06	)		(1.90	)
Total distributions		(2.21	)		(0.64	)		(1.40	)		(2.06	)		(1.90	)
Net Asset Value, End of Period	$	12.22		$	14.05		$	11.66		$	12.43		$	14.11
Total Return (%) (d)		0.28			26.68			6.05			1.43			0.94
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.21			1.22			1.21			1.20			1.20
Net ratio of expenses to average net assets (%) (e)		1.13			1.13			1.12			1.11			1.11
Ratio of net investment loss to average net assets (%)		(0.33	)		(0.70	)		(0.25	)(c)		(0.51	)		(0.65	)
Portfolio turnover rate (%)		44			40			53			64			56
Net assets, end of period (in millions)	$	57.8		$	66.0		$	60.1		$	64.2		$	71.9

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.45		$	11.97		$	12.71		$	14.37		$	16.25
Income (Loss) from Investment Operations
Net investment loss (a)		(0.03	)		(0.08	)		(0.02	)(c)		(0.06	)		(0.08	)
Net realized and unrealized gain		0.43			3.20			0.68			0.46			0.10
Total income (loss) from investment operations		0.40			3.12			0.66			0.40			0.02
Less Distributions
Distributions from net realized capital gains		(2.21	)		(0.64	)		(1.40	)		(2.06	)		(1.90	)
Total distributions		(2.21	)		(0.64	)		(1.40	)		(2.06	)		(1.90	)
Net Asset Value, End of Period	$	12.64		$	14.45		$	11.97		$	12.71		$	14.37
Total Return (%) (d)		0.43			26.74			6.16			1.55			1.05
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.11			1.12			1.11			1.10			1.10
Net ratio of expenses to average net assets (%) (e)		1.03			1.03			1.02			1.01			1.01
Ratio of net investment loss to average net assets (%)		(0.22	)		(0.60	)		(0.15	)(c)		(0.41	)		(0.55	)
Portfolio turnover rate (%)		44			40			53			64			56
Net assets, end of period (in millions)	$	7.0		$	7.3		$	6.4		$	6.7		$	7.4

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income (loss) was less than $0.01.
(c)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.02% of average net assets, respectively.
(d)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(f)	Ratio of net investment income (loss) to average net assets was less than 0.01%.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Loomis Sayles Small Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is

BHFTII-14

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $10,157,271. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $16,094,529. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its

BHFTII-15

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	156,100,497	$	0	$	229,052,709

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Adviserswith respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$3,311,802		0.900	%	Of the first $500 million
		0.850	%	On amounts in excess of $500 million

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Loomis, Sayles & Company, L.P. (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers - Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.050%	On the first $100 million
0.100%	On the next $400 million
0.050%	On amounts in excess of $500 million

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

BHFTII-16

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Distribution and Service Fees- The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	289,449,297
Gross unrealized appreciation		74,136,169
Gross unrealized depreciation		(12,420,313	)
Net unrealized appreciation (depreciation)	$	61,715,856

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$2,060,229	$	—	$	47,407,677	$	16,934,096	$	49,467,906	$	16,934,096

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$1,028,910	$	56,604,505	$	61,715,856	$	—	$	119,349,271

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

BHFTII-17

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-18

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Loomis Sayles Small Cap Growth Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Loomis Sayles Small Cap Growth Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Growth Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-21

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-22

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-23

Brighthouse Funds Trust II

Loomis Sayles Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Loomis Sayles Small Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Loomis, Sayles & Company, L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Growth Index, for theone-, three-, and five-year periods ended September 30, 2018.

The Board also noted that the Portfolio’s actual management fees were below the Expense Group median and theSub-advised Expense Universe median, and equal to Expense Universe median. The Board noted that the Portfolio’s total expenses (exclusive of12b-1 fees) were below the Expense Group median and the Expense Universe median, and above theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Universe and theSub-advised Expense Group at the Portfolio’s current size.

BHFTII-24

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Managed by MetLife Investment Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, E, and G shares of the MetLife Aggregate Bond Index Portfolio returned-0.18%,-0.45%,-0.34%, and-0.49%, respectively. The Portfolio’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index¹, returned 0.01%.

MARKET ENVIRONMENT / CONDITIONS

The Federal Open Market Committee (the “FOMC”) met eight times during the12-month period and increased the Federal Funds Rate by 1.00% to 2.25%-2.50% range. The FOMC noted that the labor market had continued to strengthen, and that economic activity increased at a solid rate for most of the year. Data suggested that household spending had grown, but that business fixed investment had moderated byyear-end. The FOMC stated that risks to the economic outlook appear roughly balanced and that inflation was expected to remain around the 2.0% objective over the medium term. The FOMC suggested that some further gradual rate increases would be consistent with sustained expansion of economic activity. However, the FOMC decreased its 2019 projection to only two rate hikes, down from three.

During 2018, the U.S. economy showed considerable strength, but increased risk aversion and volatility created uncertainty in the market as the year ended. Bond returns were lower over the period broadly reflecting macro uncertainty with trade tensions and a potentially slowing global economy, even though economic indicators remained strong. The housing and labor markets remained strong and consumer confidence was robust reflecting a resilient consumer. However, after a relatively benign 2017, volatility returned to the market as longer-term risks to the economy increased. U.S. Treasury rates increased during 2018, but the curve flattened over the year as short-term Treasuries sold off and inverted byyear-end. The difference between the10-year and30-year U.S. Treasury remained at 0.33%, while the2-year and10-year differential decreased by 0.33% to 0.19%. The10-year increased 0.28% to 2.69% and the30-year increased 0.28% to 3.02%.

The Bloomberg Barclays U.S. Aggregate Bond Index returned 0.01% in 2018. Asset-Backed Securities performed the best, returning 1.77% in 2018. The worst performing sector during the period was the Corporate sector, returning-2.51%. Credit risk increased as option adjusted spreads widened 18 basis points across the U.S. Aggregate Bond Index. Lower rated debt was most sensitive withBBB-rated Corporates andBBB-rated Government related spreads wider by 72 basis points and 85 basis points, respectively.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio is managed utilizing a Stratified Sampling approach where the objective is to track the performance of the Index by holding a subset of Index constituents and neutralizing exposures across key characteristics (i.e., duration, term structure, high sector,sub-sector, quality). Factors that impact tracking error include sampling, transaction costs, contributions and withdrawals.

Stacey Lituchy

Jason Chapin

Brian Leonard

Portfolio Managers

MetLife Investment Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
MetLife Aggregate Bond Index Portfolio
Class A		-0.18		2.28		3.14		—
Class B		-0.45		2.02		2.88		—
Class E		-0.34		2.13		2.99		—
Class G		-0.49		1.96		—		2.87
Bloomberg Barclays U.S. Aggregate Bond Index		0.01		2.52		3.48		—

¹ The Bloomberg Barclays U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

² Inception dates of the Class A, Class B, Class E and Class G shares are 11/9/98,1/2/01, 5/1/01 and 4/28/09, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Sectors

	% of Net Assets
U.S. Treasury & Government Agencies		68.8
Corporate Bonds & Notes		26.4
Foreign Government		1.7
Mortgage-Backed Securities		1.2
Asset-Backed Securities		0.6
Municipals		0.5

BHFTII-2

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MetLife Aggregate Bond Index Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.27	%	$	1,000.00	$	1,015.40	$	1.37
	Hypothetical*		0.27	%	$	1,000.00	$	1,023.84	$	1.38
Class B (a)	Actual		0.52	%	$	1,000.00	$	1,013.80	$	2.64
	Hypothetical*		0.52	%	$	1,000.00	$	1,022.58	$	2.65
Class E (a)	Actual		0.42	%	$	1,000.00	$	1,014.50	$	2.13
	Hypothetical*		0.42	%	$	1,000.00	$	1,023.09	$	2.14
Class G (a)	Actual		0.57	%	$	1,000.00	$	1,013.80	$	2.89
	Hypothetical*		0.57	%	$	1,000.00	$	1,022.33	$	2.91

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—68.8% of Net Assets

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage-Backed—29.0%
Fannie Mae 15 Yr. Pool
2.500%, 12/01/27		2,484,531	$	2,455,179
2.500%, 02/01/28		2,012,291		1,988,518
2.500%, 07/01/28		3,530,568		3,480,479
2.500%, 10/01/28		2,178,349		2,147,444
2.500%, 03/01/30		2,339,758		2,292,575
2.500%, 09/01/31		3,709,360		3,626,684
2.500%, 01/01/32		1,192,686		1,166,103
2.500%, 04/01/32		2,498,524		2,441,199
2.500%, 09/01/32		848,116		828,658
3.000%, 01/01/27		921,068		923,346
3.000%, 02/01/27		1,537,285		1,541,088
3.000%, 03/01/27		792,047		794,864
3.000%, 01/01/29		3,836,753		3,851,704
3.000%, 10/01/29		1,755,756		1,757,237
3.000%, 06/01/30		2,036,094		2,035,643
3.000%, 02/01/33		4,533,013		4,525,451
3.500%, 02/01/26		1,308,853		1,328,937
3.500%, 03/01/26		599,295		608,353
3.500%, 05/01/29		1,553,649		1,580,045
3.500%, 08/01/32		768,544		778,454
4.000%, 04/01/19		2,055		2,052
4.000%, 05/01/19		9,244		9,234
4.000%, 01/01/20		35,020		35,042
4.000%, 06/01/24		170,544		174,589
4.000%, 11/01/24		1,055,258		1,080,287
4.500%, 05/01/19		5,349		5,349
4.500%, 08/01/24		275,989		283,644
4.500%, 06/01/25		522,453		537,999
5.000%, 01/01/19		575		575
5.000%, 02/01/20		29,359		29,533
5.000%, 01/01/22		51,227		52,278
5.000%, 02/01/24		246,037		251,386
Fannie Mae 20 Yr. Pool
3.000%, 02/01/33		1,395,066		1,395,042
3.000%, 08/01/35		1,985,653		1,973,370
3.000%, 05/01/36		2,792,014		2,759,258
3.500%, 04/01/32		1,241,882		1,262,902
3.500%, 09/01/35		1,858,344		1,881,023
3.500%, 07/01/38		2,415,886		2,441,918
4.000%, 02/01/31		543,997		561,525
4.000%, 03/01/38		1,804,077		1,855,955
4.000%, 07/01/38		2,404,818		2,473,920
4.500%, 08/01/30		330,331		345,216
5.000%, 02/01/24		109,959		115,137
5.000%, 09/01/25		96,014		100,547
5.500%, 07/01/23		63,282		66,881
5.500%, 01/01/24		42,893		45,332
5.500%, 07/01/24		115,261		121,868
5.500%, 07/01/25		109,658		116,153
7.000%, 10/01/21		3,412		3,541
Fannie Mae 30 Yr. Pool
3.000%, 08/01/42		1,292,855		1,270,655
3.000%, 09/01/42		1,700,261		1,671,066
3.000%, 11/01/42		2,016,159		1,981,540
3.000%, 12/01/42		4,135,790		4,064,774
Agency Sponsored Mortgage-Backed—(Continued)
Fannie Mae 30 Yr. Pool
3.000%, 01/01/43		1,006,827		989,539
3.000%, 02/01/43		3,918,962		3,851,670
3.000%, 03/01/43		4,101,847		4,028,177
3.000%, 05/01/43		3,034,997		2,980,487
3.000%, 07/01/43		8,406,940		8,255,949
3.000%, 09/01/43		1,579,530		1,551,161
3.000%, 05/01/45		2,753,896		2,696,979
3.000%, 05/01/46		3,001,500		2,928,606
3.000%, 06/01/46		3,909,926		3,814,970
3.000%, 08/01/46		3,933,486		3,837,957
3.000%, 10/01/46		4,030,551		3,932,665
3.000%, 02/01/47		8,794,250		8,580,673
3.500%, 12/01/40		1,543,716		1,558,068
3.500%, 03/01/42		1,020,306		1,028,242
3.500%, 04/01/42		2,304,704		2,322,631
3.500%, 05/01/42		2,481,744		2,501,048
3.500%, 06/01/42		1,827,499		1,841,714
3.500%, 08/01/42		1,185,727		1,194,950
3.500%, 09/01/42		3,741,800		3,770,906
3.500%, 10/01/42		1,880,524		1,895,151
3.500%, 01/01/43		1,503,549		1,515,244
3.500%, 02/01/43		2,384,679		2,403,227
3.500%, 04/01/43		2,811,384		2,831,676
3.500%, 06/01/43		1,471,805		1,475,313
3.500%, 08/01/44		1,888,800		1,898,043
3.500%, 02/01/45		2,511,421		2,523,710
3.500%, 03/01/45		4,170,112		4,186,566
3.500%, 04/01/45		4,697,186		4,712,094
3.500%, 09/01/45		8,764,026		8,791,839
3.500%, 11/01/45		2,947,178		2,956,531
3.500%, 01/01/46		3,436,477		3,447,383
3.500%, 03/01/46		3,397,911		3,406,037
3.500%, 05/01/46		2,727,524		2,734,047
3.500%, 04/01/47		7,510,136		7,510,359
3.500%, 09/01/47		3,513,227		3,513,332
3.500%, 11/01/47		6,322,200		6,322,388
3.500%, 03/01/48		5,229,595		5,229,413
4.000%, 08/01/39		757,678		780,419
4.000%, 09/01/39		740,453		762,677
4.000%, 12/01/39		880,556		906,986
4.000%, 06/01/40		976,557		1,005,559
4.000%, 09/01/40		587,364		604,808
4.000%, 12/01/40		4,147,281		4,270,447
4.000%, 01/01/41		2,165,344		2,229,652
4.000%, 02/01/41		2,739,210		2,820,560
4.000%, 12/01/41		997,855		1,026,917
4.000%, 02/01/42		1,138,892		1,172,062
4.000%, 09/01/43		1,573,175		1,617,932
4.000%, 02/01/44		2,619,592		2,694,120
4.000%, 05/01/44		1,717,508		1,761,544
4.000%, 08/01/44		2,533,893		2,598,861
4.000%, 10/01/44		1,487,813		1,525,960
4.000%, 11/01/44		2,891,684		2,957,722
4.000%, 01/01/45		2,418,509		2,480,518
4.000%, 03/01/45		1,628,756		1,664,944

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage-Backed—(Continued)
Fannie Mae 30 Yr. Pool
4.000%, 10/01/45		2,727,686	$	2,788,290
4.000%, 03/01/47		1,077,165		1,099,201
4.000%, 05/01/47		1,525,956		1,557,176
4.000%, 06/01/47		8,035,106		8,199,498
4.000%, 07/01/47		2,008,940		2,050,042
4.000%, 10/01/47		2,567,472		2,620,001
4.000%, 05/01/48		3,785,969		3,860,695
4.000%, 06/01/48		3,853,901		3,929,968
4.000%, 07/01/48		2,906,113		2,963,474
4.000%, 09/01/48		1,644,795		1,677,260
4.000%, 10/01/48		2,466,169		2,516,046
4.000%, 11/01/48		2,973,625		3,032,318
4.500%, 08/01/33		181,273		189,670
4.500%, 10/01/33		163,487		171,059
4.500%, 04/01/34		65,679		68,756
4.500%, 01/01/39		55,719		58,301
4.500%, 07/01/39		1,141,420		1,195,303
4.500%, 09/01/39		1,662,259		1,740,731
4.500%, 10/01/39		717,619		751,496
4.500%, 05/01/40		1,006,638		1,057,135
4.500%, 08/01/40		1,606,423		1,681,301
4.500%, 11/01/40		827,169		865,724
4.500%, 12/01/40		1,544,889		1,616,899
4.500%, 04/01/41		3,778,898		3,953,857
4.500%, 05/01/41		938,127		981,329
4.500%, 03/01/44		1,007,600		1,048,469
4.500%, 08/01/47		2,229,971		2,310,000
4.500%, 08/01/48		6,139,522		6,360,835
4.500%, 12/01/48		2,988,049		3,095,760
5.000%, 07/01/33		87,159		92,983
5.000%, 08/01/33		356,800		380,641
5.000%, 09/01/33		143,045		152,603
5.000%, 10/01/33		1,462,862		1,560,607
5.000%, 03/01/34		169,020		180,314
5.000%, 04/01/34		396,818		423,392
5.000%, 05/01/34		50,174		53,540
5.000%, 09/01/34		195,179		208,271
5.000%, 02/01/35		69,728		74,405
5.000%, 04/01/35		96,877		103,082
5.000%, 05/01/35		40,365		42,951
5.000%, 11/01/35		100,466		106,901
5.000%, 03/01/36		388,131		412,994
5.000%, 07/01/37		328,993		350,385
5.000%, 01/01/39		294,168		313,296
5.000%, 04/01/40		1,080,409		1,146,987
5.000%, 07/01/41		709,355		752,419
5.500%, 10/01/32		28,964		30,769
5.500%, 02/01/33		75,027		80,855
5.500%, 03/01/33		302,568		326,085
5.500%, 08/01/33		491,678		529,894
5.500%, 10/01/33		59,224		63,827
5.500%, 12/01/33		538,710		580,581
5.500%, 02/01/34		102,098		109,898
5.500%, 03/01/34		92,832		99,923
5.500%, 04/01/34		37,473		40,336
Agency Sponsored Mortgage-Backed—(Continued)
Fannie Mae 30 Yr. Pool
5.500%, 06/01/34		153,006		164,695
5.500%, 09/01/34		139,063		149,687
5.500%, 12/01/34		100,248		107,907
5.500%, 01/01/35		107,477		115,688
5.500%, 04/01/35		68,804		74,278
5.500%, 06/01/35		105,250		113,622
5.500%, 01/01/37		137,994		148,975
5.500%, 05/01/37		105,860		114,098
5.500%, 05/01/38		70,720		76,257
5.500%, 06/01/38		83,601		90,147
5.500%, 07/01/38		52,835		56,972
6.000%, 08/01/28		2,051		2,061
6.000%, 11/01/28		465		493
6.000%, 12/01/28		597		647
6.000%, 06/01/31		33,365		35,110
6.000%, 09/01/32		60,304		66,381
6.000%, 01/01/33		16,566		18,171
6.000%, 02/01/33		53,460		58,471
6.000%, 03/01/33		76,843		79,282
6.000%, 04/01/33		190,504		202,496
6.000%, 05/01/33		140,659		148,959
6.000%, 05/01/34		134,115		141,219
6.000%, 09/01/34		115,090		122,662
6.000%, 11/01/34		205,039		226,658
6.000%, 01/01/35		62,783		67,957
6.000%, 07/01/36		31,033		34,302
6.000%, 09/01/36		96,879		107,201
6.000%, 07/01/37		46,001		48,148
6.000%, 08/01/37		139,974		154,539
6.000%, 09/01/37		290,306		319,455
6.000%, 10/01/37		96,541		106,453
6.000%, 05/01/38		388,180		428,905
6.000%, 12/01/38		91,892		101,193
6.500%, 05/01/28		31,812		34,888
6.500%, 12/01/28		104,263		110,339
6.500%, 03/01/29		2,309		2,503
6.500%, 04/01/29		19,019		20,895
6.500%, 05/01/29		4,371		4,823
6.500%, 08/01/29		746		808
6.500%, 05/01/30		13,194		13,514
6.500%, 09/01/31		3,669		3,836
6.500%, 06/01/32		15,578		17,456
6.500%, 10/01/33		62,245		67,122
6.500%, 10/01/34		178,790		200,793
6.500%, 10/01/37		56,115		62,558
7.000%, 06/01/26		305		319
7.000%, 06/01/28		6,284		6,401
7.000%, 10/01/29		5,750		6,466
7.000%, 12/01/29		3,070		3,215
7.000%, 06/01/32		43,631		49,228
7.000%, 10/01/37		116,253		132,250
7.500%, 09/01/25		3,013		3,287
7.500%, 06/01/26		2,574		2,833
7.500%, 07/01/29		7,382		8,318
7.500%, 10/01/29		4,061		4,299

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage-Backed—(Continued)
Fannie Mae 30 Yr. Pool
8.000%, 11/01/29		82	$	95
8.000%, 05/01/30		15,258		16,214
8.000%, 11/01/30		1,915		2,183
8.000%, 01/01/31		1,258		1,417
8.000%, 02/01/31		3,737		4,315
Freddie Mac 15 Yr. Gold Pool
2.500%, 12/01/27		1,139,617		1,124,839
2.500%, 02/01/28		1,829,123		1,801,046
2.500%, 04/01/28		1,610,840		1,586,114
2.500%, 12/01/29		2,373,965		2,331,082
2.500%, 01/01/31		3,142,896		3,075,847
2.500%, 01/01/32		4,811,276		4,698,371
3.000%, 03/01/27		859,443		860,088
3.000%, 05/01/27		1,153,218		1,155,334
3.000%, 11/01/28		1,442,681		1,445,817
3.000%, 12/01/29		2,590,496		2,588,208
3.000%, 05/01/31		3,105,348		3,096,412
3.000%, 10/01/32		1,710,147		1,704,324
3.500%, 12/01/25		902,708		916,566
3.500%, 05/01/26		321,827		326,687
3.500%, 09/01/30		2,056,452		2,088,981
4.000%, 06/01/19		12,516		12,517
4.000%, 05/01/25		463,941		475,409
4.000%, 08/01/25		219,504		224,930
4.000%, 10/01/25		247,188		253,299
4.500%, 04/01/19		10,262		10,265
4.500%, 06/01/19		13,353		13,354
4.500%, 08/01/19		2,385		2,387
5.000%, 06/01/19		11,396		11,413
5.500%, 01/01/24		201,734		209,369
Freddie Mac 20 Yr. Gold Pool
3.000%, 04/01/33		2,170,539		2,167,477
3.000%, 02/01/37		2,502,524		2,472,412
3.500%, 04/01/32		1,554,000		1,580,053
4.000%, 01/01/31		604,505		623,925
4.000%, 08/01/31		601,681		621,896
4.500%, 05/01/29		152,733		159,555
5.000%, 03/01/27		78,716		82,701
Freddie Mac 30 Yr. Gold Pool
2.500%, 07/01/43		2,263,927		2,157,521
3.000%, 10/01/42		2,079,753		2,043,411
3.000%, 01/01/43		1,970,232		1,935,804
3.000%, 03/01/43		5,202,596		5,108,878
3.000%, 04/01/43		3,565,785		3,500,658
3.000%, 06/01/43		1,667,550		1,637,094
3.000%, 07/01/43		3,142,764		3,085,364
3.000%, 06/01/45		3,550,046		3,475,587
3.000%, 06/01/46		3,869,568		3,774,419
3.000%, 10/01/46		3,215,517		3,136,451
3.000%, 11/01/46		4,086,634		3,986,148
3.000%, 01/01/47		6,540,452		6,379,629
3.500%, 01/01/42		1,100,747		1,109,388
3.500%, 03/01/42		997,042		1,004,603
3.500%, 08/01/42		2,659,284		2,679,451
3.500%, 02/01/43		1,440,365		1,451,288
Agency Sponsored Mortgage-Backed—(Continued)
Freddie Mac 30 Yr. Gold Pool
3.500%, 05/01/43		2,233,082		2,248,771
3.500%, 06/01/43		1,293,909		1,302,999
3.500%, 06/01/44		1,625,201		1,632,839
3.500%, 10/01/44		1,743,282		1,751,475
3.500%, 11/01/44		2,508,102		2,519,889
3.500%, 12/01/44		2,342,409		2,353,418
3.500%, 05/01/45		2,902,807		2,911,456
3.500%, 08/01/45		3,219,576		3,229,169
3.500%, 11/01/45		3,093,608		3,102,825
3.500%, 12/01/45		1,875,187		1,880,774
3.500%, 03/01/46		5,769,620		5,784,748
3.500%, 06/01/47		3,416,655		3,416,082
3.500%, 08/01/47		2,178,641		2,178,372
3.500%, 10/01/47		2,716,224		2,715,889
3.500%, 11/01/47		2,685,108		2,684,658
3.500%, 02/01/48		5,646,437		5,645,490
4.000%, 06/01/39		553,498		570,047
4.000%, 12/01/39		869,548		895,548
4.000%, 11/01/40		877,463		903,445
4.000%, 04/01/41		874,466		899,836
4.000%, 09/01/41		919,917		946,605
4.000%, 10/01/41		2,021,334		2,079,976
4.000%, 11/01/41		822,678		846,545
4.000%, 10/01/43		2,515,065		2,586,430
4.000%, 07/01/44		2,478,658		2,541,998
4.000%, 10/01/44		1,879,916		1,927,956
4.000%, 07/01/45		2,970,883		3,036,632
4.000%, 01/01/46		2,997,679		3,064,021
4.000%, 02/01/46		1,616,684		1,652,463
4.000%, 06/01/47		3,581,061		3,654,004
4.000%, 10/01/47		1,718,014		1,753,009
4.000%, 11/01/47		1,712,853		1,747,742
4.000%, 03/01/48		2,724,687		2,780,186
4.000%, 05/01/48		1,889,251		1,926,369
4.000%, 10/01/48		2,467,654		2,517,336
4.000%, 11/01/48		2,976,562		3,035,041
4.500%, 10/01/35		265,946		278,311
4.500%, 06/01/38		405,514		424,368
4.500%, 02/01/39		310,810		325,174
4.500%, 03/01/39		253,697		265,611
4.500%, 04/01/39		470,504		492,598
4.500%, 09/01/39		510,815		534,802
4.500%, 10/01/39		1,327,588		1,389,930
4.500%, 11/01/39		376,255		393,923
4.500%, 01/01/40		310,882		325,480
4.500%, 05/01/40		509,025		532,642
4.500%, 11/01/40		792,581		829,354
4.500%, 02/01/41		158,505		165,772
4.500%, 05/01/41		452,740		473,495
4.500%, 06/01/41		332,149		347,376
4.500%, 12/01/43		737,017		768,112
4.500%, 12/01/45		928,504		965,942
4.500%, 08/01/47		2,306,246		2,388,475
4.500%, 08/01/48		1,449,804		1,501,707
4.500%, 10/01/48		2,459,193		2,547,232

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage-Backed—(Continued)
Freddie Mac 30 Yr. Gold Pool
5.000%, 10/01/33		435,809	$	464,710
5.000%, 03/01/34		64,927		69,248
5.000%, 08/01/35		292,626		311,258
5.000%, 09/01/35		120,789		128,480
5.000%, 10/01/35		92,402		98,286
5.000%, 01/01/36		313,403		333,359
5.000%, 04/01/38		221,267		235,567
5.000%, 11/01/39		969,284		1,028,328
5.000%, 05/01/40		1,244,893		1,320,988
5.500%, 06/01/34		184,639		198,678
5.500%, 10/01/35		132,605		143,097
5.500%, 12/01/35		325,834		351,617
5.500%, 01/01/36		254,936		275,109
5.500%, 12/01/37		249,579		269,307
5.500%, 04/01/38		1,069,056		1,152,396
5.500%, 07/01/38		119,047		128,328
5.500%, 08/01/38		326,534		351,990
6.000%, 11/01/28		4,840		5,206
6.000%, 12/01/28		3,821		4,139
6.000%, 04/01/29		1,801		1,914
6.000%, 06/01/31		1,855		1,980
6.000%, 07/01/31		517		567
6.000%, 09/01/31		51,763		54,156
6.000%, 11/01/32		17,955		19,662
6.000%, 06/01/34		65,380		69,439
6.000%, 11/01/35		63,745		70,334
6.000%, 02/01/36		123,702		134,348
6.000%, 08/01/36		31,381		34,680
6.000%, 10/01/36		97,822		108,091
6.000%, 11/01/36		45,805		48,714
6.000%, 01/01/37		45,236		49,008
6.000%, 02/01/38		109,444		120,463
6.000%, 11/01/39		886,600		979,026
6.000%, 04/01/40		304,624		336,900
6.500%, 02/01/30		4,713		5,070
6.500%, 08/01/31		5,725		6,403
6.500%, 10/01/31		6,404		6,696
6.500%, 11/01/31		12,309		13,782
6.500%, 03/01/32		284,420		317,611
6.500%, 04/01/32		216,244		241,358
6.500%, 09/01/36		252,639		283,483
6.500%, 11/01/37		90,123		100,123
7.000%, 12/01/27		825		910
7.000%, 11/01/28		2,316		2,573
7.000%, 04/01/29		2,199		2,463
7.000%, 05/01/29		587		634
7.000%, 06/01/29		5,200		5,464
7.000%, 07/01/29		1,068		1,162
7.000%, 01/01/31		39,872		41,249
7.500%, 08/01/24		6,261		6,286
7.500%, 10/01/27		5,309		5,924
7.500%, 10/01/29		8,051		9,186
7.500%, 05/01/30		10,735		11,967
8.000%, 02/01/27		2,159		2,423
8.000%, 10/01/28		3,936		4,417
Agency Sponsored Mortgage-Backed—(Continued)
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO)
2.902%, 08/25/20		454,450		452,675
3.060%, 07/25/23 (a)		4,800,000		4,816,161
3.117%, 06/25/27		2,000,000		1,972,415
3.187%, 09/25/27 (a)		1,265,000		1,250,926
3.194%, 07/25/27		685,000		678,624
3.780%, 10/25/28 (a)		4,000,000		4,124,194
3.920%, 09/25/28 (a)		2,900,000		3,023,330
Ginnie Mae I 15 Yr. Pool
3.000%, 08/15/28		1,631,193		1,634,084
5.000%, 10/15/20		44,672		45,191
5.000%, 01/15/21		43,610		44,049
Ginnie Mae I 30 Yr. Pool
3.000%, 11/15/42		1,935,817		1,917,910
3.000%, 12/15/42		1,563,381		1,548,919
3.000%, 02/15/43		1,250,000		1,238,437
3.000%, 03/15/43		1,480,596		1,468,160
3.000%, 05/15/43		2,069,512		2,052,129
3.000%, 07/15/43		1,370,014		1,358,506
3.500%, 01/15/42		1,886,403		1,912,566
3.500%, 02/15/42		612,015		620,231
3.500%, 03/15/42		1,343,468		1,361,504
3.500%, 05/15/42		851,434		862,865
3.500%, 09/15/42		1,161,883		1,177,482
3.500%, 05/15/43		1,612,822		1,630,125
4.000%, 07/15/39		1,284,571		1,326,687
4.000%, 07/15/40		765,165		790,488
4.000%, 03/15/41		502,946		519,261
4.000%, 10/15/41		1,083,301		1,118,441
4.500%, 01/15/39		183,015		191,343
4.500%, 04/15/39		606,525		634,138
4.500%, 05/15/39		1,161,435		1,214,309
4.500%, 08/15/39		530,829		554,996
4.500%, 01/15/40		559,605		585,081
4.500%, 04/15/40		589,695		617,209
4.500%, 02/15/41		149,113		156,070
4.500%, 04/15/41		361,868		377,517
5.000%, 12/15/35		202,044		214,089
5.000%, 12/15/36		99,210		105,116
5.000%, 01/15/39		634,892		678,681
5.000%, 02/15/39		115,192		123,137
5.000%, 08/15/39		802,025		857,413
5.000%, 09/15/39		195,529		209,032
5.000%, 12/15/39		409,254		437,516
5.000%, 05/15/40		628,194		668,666
5.500%, 03/15/36		130,452		140,066
5.500%, 01/15/37		208,564		223,976
5.500%, 11/15/37		289,117		313,848
5.500%, 09/15/38		51,504		54,221
5.500%, 08/15/39		744,631		815,943
6.000%, 01/15/29		2,604		2,803
6.000%, 01/15/33		139,337		155,325
6.000%, 03/15/35		147,143		165,492
6.000%, 12/15/35		137,533		153,514
6.000%, 06/15/36		95,881		107,100

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage-Backed—(Continued)
Ginnie Mae I 30 Yr. Pool
6.000%, 09/15/36		99,743	$	111,355
6.000%, 07/15/38		639,994		715,620
6.500%, 05/15/23		821		824
6.500%, 02/15/27		18,216		19,656
6.500%, 07/15/28		7,563		8,199
6.500%, 08/15/28		7,967		8,712
6.500%, 11/15/28		5,369		5,922
6.500%, 12/15/28		7,848		8,327
6.500%, 07/15/29		1,812		1,880
6.500%, 05/15/36		106,506		120,436
7.000%, 01/15/28		1,126		1,235
7.000%, 05/15/28		6,779		7,170
7.000%, 06/15/28		6,201		6,932
7.000%, 10/15/28		6,328		6,961
7.000%, 09/15/29		1,844		1,878
7.000%, 01/15/31		1,190		1,235
7.000%, 03/15/31		11,006		11,450
7.000%, 07/15/31		273,125		312,548
7.000%, 08/15/31		49,421		56,559
7.000%, 02/15/32		8,090		8,215
7.000%, 07/15/32		13,375		15,475
8.000%, 08/15/26		2,261		2,489
8.000%, 09/15/26		2,174		2,370
8.000%, 06/15/29		19,849		21,294
9.000%, 11/15/24		1,700		1,764
Ginnie Mae II 30 Yr. Pool
3.000%, 12/20/42		1,810,890		1,799,456
3.000%, 03/20/43		2,640,530		2,617,127
3.000%, 12/20/44		2,294,575		2,271,078
3.000%, 04/20/45		2,151,255		2,126,420
3.000%, 08/20/45		3,253,254		3,215,697
3.000%, 11/20/45		1,850,244		1,828,884
3.000%, 01/20/46		3,242,402		3,204,970
3.000%, 09/20/46		3,741,427		3,689,094
3.000%, 10/20/46		3,803,879		3,750,672
3.000%, 11/20/46		3,948,183		3,892,958
3.000%, 01/20/47		3,998,368		3,942,440
3.000%, 04/20/47		1,632,482		1,607,793
3.000%, 02/20/48		2,930,887		2,886,562
3.500%, 12/20/41		1,098,115		1,115,594
3.500%, 03/20/42		2,091,747		2,125,702
3.500%, 08/20/42		1,065,429		1,082,723
3.500%, 01/20/43		3,116,878		3,167,473
3.500%, 04/20/43		1,249,907		1,268,495
3.500%, 05/20/43		2,149,645		2,181,613
3.500%, 07/20/44		2,761,456		2,793,649
3.500%, 02/20/45		2,991,514		3,026,390
3.500%, 06/20/45		1,913,897		1,934,388
3.500%, 08/20/45		4,453,036		4,500,712
3.500%, 09/20/45		5,133,303		5,188,262
3.500%, 10/20/45		3,035,816		3,068,319
3.500%, 12/20/45		2,694,550		2,723,399
3.500%, 01/20/46		2,681,911		2,710,625
3.500%, 02/20/46		2,215,704		2,239,427
3.500%, 06/20/46		2,594,555		2,617,800
Agency Sponsored Mortgage-Backed—(Continued)
Ginnie Mae II 30 Yr. Pool
3.500%, 02/20/47		4,263,399		4,301,595
3.500%, 03/20/47		3,856,663		3,885,329
3.500%, 06/20/47		4,951,476		4,988,280
3.500%, 09/20/47		1,765,700		1,778,825
3.500%, 12/20/47		8,316,572		8,378,390
3.500%, 03/20/48		3,344,932		3,369,596
3.500%, 10/20/48		995,027		1,002,364
4.000%, 11/20/40		1,043,000		1,077,758
4.000%, 12/20/40		1,236,727		1,277,941
4.000%, 05/20/43		1,997,523		2,062,580
4.000%, 11/20/43		746,144		770,445
4.000%, 02/20/44		2,654,293		2,740,740
4.000%, 04/20/44		1,047,700		1,080,297
4.000%, 05/20/44		1,275,127		1,314,800
4.000%, 09/20/44		1,987,131		2,048,957
4.000%, 10/20/44		2,841,061		2,929,456
4.000%, 11/20/44		555,399		572,680
4.000%, 10/20/45		2,300,720		2,367,618
4.000%, 11/20/45		1,207,967		1,243,091
4.000%, 02/20/47		3,119,095		3,205,554
4.000%, 03/20/47		659,535		677,817
4.000%, 04/20/47		2,696,595		2,764,661
4.000%, 05/20/47		2,907,411		2,980,798
4.000%, 09/20/47		2,508,382		2,571,697
4.000%, 07/20/48		2,359,707		2,418,520
4.000%, 08/20/48		1,643,987		1,684,961
4.000%, 09/20/48		2,977,743		3,051,960
4.000%, 11/20/48		1,496,839		1,534,146
4.500%, 08/20/40		875,210		916,562
4.500%, 12/20/40		561,196		587,711
4.500%, 04/20/41		482,150		504,572
4.500%, 03/20/42		403,288		422,042
4.500%, 10/20/43		607,259		632,875
4.500%, 02/20/44		1,213,198		1,264,375
4.500%, 04/20/45		1,117,106		1,164,229
4.500%, 03/20/47		1,553,791		1,616,552
4.500%, 11/20/47		1,678,936		1,740,712
4.500%, 08/20/48		8,109,534		8,397,725
5.000%, 08/20/40		397,452		421,329
5.000%, 10/20/40		413,962		438,830
5.000%, 06/20/44		928,977		984,785
5.000%, 10/20/48		2,490,592		2,597,321
6.500%, 06/20/31		16,263		18,272
6.500%, 11/20/38		336,892		380,083
7.500%, 02/20/28		1,703		1,893
				719,882,171
Federal Agencies—1.4%
Federal Home Loan Bank 1.750%, 06/12/20		12,700,000		12,546,711
Federal Home Loan Mortgage Corp.
1.125%, 08/12/21 (b)		5,200,000		5,022,264
1.375%, 05/01/20 (b)		2,645,000		2,604,161

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Federal Agencies—(Continued)
Federal National Mortgage Association
2.125%, 04/24/26		3,500,000	$	3,339,105
2.375%, 01/19/23 (b)		1,600,000		1,587,600
2.625%, 09/06/24		2,000,000		1,991,480
6.625%, 11/15/30		2,450,000		3,291,502
Tennessee Valley Authority 5.250%, 09/15/39 (b)		3,350,000		4,193,999
				34,576,822
U.S. Treasury—38.4%
U.S. Treasury Bonds
2.250%, 08/15/46		3,000,000		2,563,562
2.500%, 02/15/45		7,400,000		6,703,143
2.500%, 02/15/46		8,200,000		7,402,909
2.500%, 05/15/46		4,800,000		4,328,956
2.750%, 08/15/42		2,020,000		1,933,574
2.750%, 11/15/42		3,200,000		3,059,319
2.750%, 08/15/47		3,000,000		2,841,635
2.750%, 11/15/47		7,300,000		6,910,218
2.875%, 05/15/43		5,760,000		5,623,473
2.875%, 08/15/45		5,000,000		4,869,553
2.875%, 11/15/46		4,600,000		4,473,182
3.000%, 11/15/44		11,000,000		10,978,805
3.000%, 05/15/45		4,500,000		4,489,385
3.000%, 11/15/45		7,700,000		7,681,449
3.000%, 02/15/47		3,000,000		2,991,714
3.000%, 05/15/47		5,800,000		5,775,940
3.000%, 08/15/48 (b)		13,200,000		13,138,947
3.125%, 11/15/41		3,000,000		3,071,194
3.125%, 02/15/42		1,800,000		1,842,523
3.125%, 02/15/43		3,270,000		3,336,010
3.125%, 08/15/44		4,700,000		4,796,421
3.375%, 05/15/44		3,000,000		3,193,712
3.500%, 02/15/39		2,080,000		2,274,919
3.625%, 08/15/43		2,600,000		2,877,211
3.625%, 02/15/44		8,020,000		8,884,745
3.750%, 08/15/41		1,830,000		2,064,007
3.750%, 11/15/43		2,600,000		2,936,076
3.875%, 08/15/40		5,380,000		6,179,035
4.250%, 05/15/39 (b)		2,500,000		3,016,472
4.250%, 11/15/40 (b)		4,280,000		5,172,509
4.375%, 11/15/39 (b)		3,900,000		4,781,624
4.375%, 05/15/40		3,220,000		3,953,846
4.375%, 05/15/41		1,350,000		1,661,486
4.500%, 02/15/36 (b)		1,600,000		1,972,234
4.500%, 05/15/38 (b)		4,950,000		6,160,797
5.000%, 05/15/37		1,560,000		2,047,338
5.250%, 02/15/29		750,000		916,845
5.375%, 02/15/31		3,675,000		4,670,293
6.125%, 11/15/27		1,750,000		2,223,518
6.250%, 08/15/23		7,700,000		8,945,610
6.250%, 05/15/30		2,500,000		3,354,654
6.375%, 08/15/27 (b)		2,900,000		3,725,280
6.500%, 11/15/26		2,500,000		3,185,471
7.125%, 02/15/23		11,125,000		13,117,587
U.S. Treasury—(Continued)
U.S. Treasury Bonds
7.250%, 08/15/22		6,120,000		7,119,518
7.875%, 02/15/21 (b)		4,450,000		4,940,459
8.000%, 11/15/21		2,920,000		3,362,886
8.125%, 08/15/21		1,250,000		1,427,727
8.750%, 08/15/20		1,000,000		1,097,283
U.S. Treasury Notes
1.125%, 02/28/21		10,100,000		9,810,354
1.125%, 06/30/21		14,200,000		13,745,278
1.125%, 07/31/21		12,300,000		11,886,300
1.125%, 08/31/21 (b)		6,300,000		6,081,974
1.250%, 01/31/20		3,000,000		2,956,501
1.250%, 03/31/21		6,100,000		5,939,128
1.250%, 07/31/23		8,600,000		8,135,113
1.375%, 01/31/20		11,100,000		10,954,541
1.375%, 03/31/20		16,000,000		15,765,728
1.375%, 04/30/20		11,000,000		10,831,615
1.375%, 08/31/20		14,900,000		14,620,489
1.500%, 08/15/20 (b)		2,000,000		1,967,257
1.500%, 02/28/23 (b)		7,200,000		6,917,991
1.500%, 08/15/26 (b)		10,600,000		9,779,791
1.625%, 11/30/20		5,000,000		4,917,721
1.625%, 11/15/22		5,000,000		4,840,965
1.625%, 05/31/23		7,900,000		7,611,790
1.625%, 02/15/26		8,300,000		7,770,875
1.625%, 05/15/26		10,900,000		10,180,165
1.750%, 10/31/20		10,000,000		9,862,769
1.750%, 12/31/20 (b)		14,800,000		14,591,727
1.750%, 11/30/21		11,000,000		10,779,858
1.750%, 02/28/22		9,000,000		8,804,244
1.750%, 05/15/22		8,000,000		7,812,312
1.750%, 05/31/22		5,100,000		4,979,220
1.750%, 05/15/23 (b)		22,720,000		22,017,932
1.875%, 02/28/22		15,000,000		14,728,563
1.875%, 03/31/22		11,000,000		10,795,303
1.875%, 04/30/22		12,100,000		11,869,328
1.875%, 07/31/22		11,100,000		10,871,444
1.875%, 08/31/22		7,400,000		7,242,256
1.875%, 09/30/22		3,000,000		2,935,106
2.000%, 11/30/20		14,800,000		14,663,148
2.000%, 02/28/21		5,000,000		4,948,232
2.000%, 10/31/21		6,000,000		5,923,302
2.000%, 02/15/22		3,800,000		3,746,702
2.000%, 11/30/22		14,700,000		14,434,833
2.000%, 02/15/23		6,900,000		6,766,719
2.000%, 05/31/24		8,400,000		8,174,707
2.000%, 06/30/24		7,300,000		7,099,769
2.000%, 02/15/25 (b)		16,300,000		15,770,470
2.000%, 08/15/25		14,100,000		13,595,657
2.000%, 11/15/26		7,300,000		6,969,253
2.125%, 08/31/20		5,800,000		5,761,051
2.125%, 06/30/21		12,000,000		11,902,682
2.125%, 08/15/21 (b)		8,710,000		8,630,554
2.125%, 12/31/21		11,900,000		11,785,650
2.125%, 12/31/22		7,200,000		7,099,408
2.125%, 02/29/24		12,000,000		11,773,324

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
U.S. Treasury—(Continued)
U.S. Treasury Notes
2.125%, 03/31/24		6,200,000	$	6,078,819
2.125%, 05/15/25		16,400,000		15,961,631
2.250%, 02/15/21		11,000,000		10,942,439
2.250%, 07/31/21 (b)		13,000,000		12,928,900
2.250%, 11/15/24		18,100,000		17,793,021
2.250%, 11/15/25		10,800,000		10,563,409
2.250%, 02/15/27		9,900,000		9,614,993
2.250%, 08/15/27		2,100,000		2,032,466
2.250%, 11/15/27		7,600,000		7,341,806
2.375%, 12/31/20		7,600,000		7,583,421
2.375%, 04/15/21		5,000,000		4,987,928
2.375%, 08/15/24		15,900,000		15,757,205
2.375%, 05/15/27 (b)		8,000,000		7,833,157
2.500%, 06/30/20		7,000,000		6,994,599
2.500%, 08/15/23		14,400,000		14,398,207
2.500%, 05/15/24		10,000,000		9,983,132
2.625%, 08/15/20		6,000,000		6,008,197
2.625%, 11/15/20		4,000,000		4,007,180
2.750%, 09/30/20		16,000,000		16,060,659
2.750%, 11/15/23		19,335,000		19,549,536
2.750%, 02/15/24		5,600,000		5,660,880
2.750%, 02/15/28 (b)		9,100,000		9,147,452
2.875%, 05/15/28 (b)		6,000,000		6,092,245
2.875%, 08/15/28		4,100,000		4,163,440
3.500%, 05/15/20		25,390,000		25,702,197
3.625%, 02/15/20		9,190,000		9,289,237
3.625%, 02/15/21		1,500,000		1,534,717
				953,135,026
Total U.S. Treasury & Government Agencies (Cost $1,709,929,868)				1,707,594,019
Corporate Bonds & Notes—26.4%
Aerospace/Defense—0.5%
Boeing Co. (The) 7.250%, 06/15/25		460,000		553,969
Lockheed Martin Corp. 3.550%, 01/15/26		1,000,000		991,090
4.090%, 09/15/52		3,454,000		3,234,153
Northrop Grumman Corp. 3.250%, 01/15/28		1,100,000		1,027,741
Northrop Grumman Systems Corp. 7.750%, 02/15/31		515,000		677,838
Raytheon Co. 3.125%, 10/15/20 (b)		1,000,000		1,002,580
United Technologies Corp. 3.125%, 05/04/27		2,000,000		1,850,260
4.500%, 06/01/42		2,645,000		2,513,755
7.500%, 09/15/29 (b)		200,000		251,474
				12,102,860
Agriculture—0.4%
Altria Group, Inc. 4.000%, 01/31/24		1,000,000		982,690
Archer-Daniels-Midland Co. 4.479%, 03/01/21 (b)		2,000,000		2,056,000
Philip Morris International, Inc. 3.250%, 11/10/24		3,000,000		2,906,610
Reynolds American, Inc. 4.450%, 06/12/25		3,800,000		3,654,992
				9,600,292
Auto Manufacturers—0.6%
American Honda Finance Corp. 2.300%, 09/09/26		1,100,000		999,229
Daimler Finance North America LLC 8.500%, 01/18/31		1,050,000		1,424,682
Ford Motor Co. 7.450%, 07/16/31		2,200,000		2,279,068
Ford Motor Credit Co. LLC 2.597%, 11/04/19		3,000,000		2,965,620
General Motors Financial Co., Inc. 2.400%, 05/09/19		2,500,000		2,488,325
Toyota Motor Credit Corp. 3.300%, 01/12/22		4,000,000		4,017,240
				14,174,164
Banks—6.1%
Bank of America Corp.
2.625%, 04/19/21 (b)		1,000,000		986,080
3.300%, 01/11/23 (b)		4,075,000		4,015,057
4.100%, 07/24/23		2,905,000		2,952,439
4.200%, 08/26/24		3,000,000		2,979,360
5.875%, 02/07/42		3,000,000		3,468,660
Bank of Montreal 1.900%, 08/27/21		1,000,000		968,700
Bank of Nova Scotia (The) 2.700%, 03/07/22		3,000,000		2,935,800
Barclays plc 4.375%, 01/12/26		3,500,000		3,343,095
BNP Paribas S.A. 5.000%, 01/15/21		3,225,000		3,331,135
Branch Banking & Trust Co. 2.850%, 04/01/21		3,400,000		3,375,214
Capital One N.A. 2.250%, 09/13/21 (b)		3,000,000		2,889,930
Citigroup, Inc.
2.700%, 03/30/21 (b)		2,000,000		1,968,540
3.200%, 10/21/26		1,700,000		1,568,709
4.750%, 05/18/46		4,400,000		4,079,900
5.375%, 08/09/20		2,200,000		2,265,318
Cooperatieve Rabobank UA 5.250%, 05/24/41		1,640,000		1,803,426
Credit Suisse AG 4.375%, 08/05/20		2,611,000		2,653,768
Credit Suisse Group Funding Guernsey, Ltd. 3.800%, 09/15/22		1,000,000		995,120

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Banks—(Continued)
Deutsche Bank AG 4.250%, 10/14/21		900,000	$	886,014
Fifth Third Bancorp 8.250%, 03/01/38		1,175,000		1,560,835
Goldman Sachs Group, Inc. (The)
3.850%, 01/26/27		1,900,000		1,790,332
4.000%, 03/03/24		2,000,000		1,974,920
4.017%, 3M LIBOR + 1.373%, 10/31/38 (a)		2,000,000		1,757,160
6.000%, 06/15/20		2,000,000		2,069,760
6.125%, 02/15/33		2,075,000		2,354,751
HSBC Holdings plc
5.100%, 04/05/21		2,556,000		2,639,862
5.250%, 03/14/44		900,000		894,834
6.500%, 09/15/37		905,000		1,034,478
HSBC USA, Inc. 2.350%, 03/05/20		3,000,000		2,970,630
JPMorgan Chase & Co.
2.950%, 10/01/26		2,000,000		1,845,920
3.250%, 09/23/22		2,850,000		2,829,366
3.882%, 3M LIBOR + 1.360%, 07/24/38 (a)		2,100,000		1,900,857
3.900%, 07/15/25		4,700,000		4,664,280
4.950%, 03/25/20		2,650,000		2,706,392
KeyBank N.A. 3.300%, 06/01/25 (b)		3,800,000		3,711,346
KFW
1.500%, 02/06/19		2,500,000		2,497,650
1.625%, 03/15/21		5,500,000		5,387,140
2.375%, 08/25/21		1,945,000		1,933,486
2.750%, 09/08/20 (b)		2,300,000		2,304,301
Landwirtschaftliche Rentenbank
2.000%, 01/13/25		3,500,000		3,350,130
Lloyds Bank plc 6.375%, 01/21/21		1,500,000		1,582,755
Mitsubishi UFJ Financial Group, Inc. 2.998%, 02/22/22 (b)		1,900,000		1,873,020
Morgan Stanley
4.300%, 01/27/45		2,900,000		2,741,051
4.350%, 09/08/26		3,800,000		3,685,848
5.625%, 09/23/19		1,900,000		1,928,158
7.250%, 04/01/32		1,850,000		2,334,977
National Australia Bank, Ltd. 2.800%, 01/10/22		1,900,000		1,866,047
Oesterreichische Kontrollbank AG 2.875%, 03/13/23		1,300,000		1,309,269
PNC Bank N.A. 2.950%, 02/23/25		4,100,000		3,938,706
Royal Bank of Scotland Group plc
3.498%, 3M LIBOR + 1.480%, 05/15/23 (a)		1,000,000		959,200
3.875%, 09/12/23		1,000,000		958,550
Santander UK plc 2.375%, 03/16/20 (b)		2,000,000		1,975,940
Sumitomo Mitsui Financial Group, Inc. 2.632%, 07/14/26		4,700,000		4,305,717
Toronto-Dominion Bank (The) 3.500%, 07/19/23 (b)		3,000,000		3,019,290
Banks—(Continued)
U.S. Bancorp 3.600%, 09/11/24		3,000,000		2,986,350
UBS AG 4.875%, 08/04/20		3,500,000		3,580,255
Wells Fargo & Co.
2.600%, 07/22/20		4,000,000		3,959,440
3.000%, 01/22/21 (b)		3,400,000		3,382,796
3.000%, 10/23/26		2,000,000		1,851,420
Wells Fargo Bank N.A. 5.950%, 08/26/36		1,900,000		2,188,895
Westpac Banking Corp. 2.800%, 01/11/22		2,000,000		1,963,940
				152,036,319
Beverages—0.6%
Anheuser-Busch InBev Finance, Inc.
3.650%, 02/01/26		2,000,000		1,883,640
4.900%, 02/01/46		5,300,000		4,879,392
Anheuser-Busch InBev Worldwide, Inc. 4.439%, 10/06/48		1,165,000		1,005,092
Coca-Cola Co. (The)
3.150%, 11/15/20 (b)		280,000		281,395
3.200%, 11/01/23 (b)		3,000,000		3,010,650
Keurig Dr Pepper, Inc. 4.057%, 05/25/23 (144A)		1,000,000		996,990
PepsiCo, Inc. 3.600%, 03/01/24		3,975,000		4,034,267
				16,091,426
Biotechnology—0.4%
Amgen, Inc.
2.600%, 08/19/26 (b)		3,200,000		2,907,776
3.625%, 05/22/24		1,200,000		1,196,256
Celgene Corp.
4.625%, 05/15/44		2,000,000		1,766,280
Gilead Sciences, Inc. 3.650%, 03/01/26		3,000,000		2,944,410
				8,814,722
Chemicals—0.4%
Dow Chemical Co. (The)
4.250%, 11/15/20		2,750,000		2,788,005
9.400%, 05/15/39		650,000		930,579
LyondellBasell Industries NV 4.625%, 02/26/55		1,400,000		1,180,088
Nutrien, Ltd. 4.875%, 03/30/20		970,000		987,615
Praxair, Inc. 3.000%, 09/01/21 (b)		3,950,000		3,950,672
				9,836,959
Computers—0.6%
Apple, Inc.
2.250%, 02/23/21 (b)		3,000,000		2,965,890

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Computers—(Continued)
Apple, Inc.
2.400%, 05/03/23		2,072,000	$	2,004,225
4.450%, 05/06/44		2,944,000		3,037,560
4.650%, 02/23/46		2,700,000		2,854,710
Hewlett Packard Enterprise Co. 4.900%, 10/15/25 (b)		1,400,000		1,413,944
International Business Machines Corp.
4.000%, 06/20/42 (b)		3,200,000		2,899,744
8.375%, 11/01/19		425,000		443,670
				15,619,743
Cosmetics/Personal Care—0.3%
Procter & Gamble Co. (The) 2.300%, 02/06/22 (b)		3,600,000		3,541,680
Unilever Capital Corp.
2.900%, 05/05/27		1,500,000		1,427,955
5.900%, 11/15/32		1,500,000		1,832,760
				6,802,395
Diversified Financial Services—0.6%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust 3.950%, 02/01/22 (b)		1,800,000		1,764,540
American Express Credit Corp. 3.300%, 05/03/27 (b)		3,000,000		2,915,520
BlackRock, Inc. 3.500%, 03/18/24		3,800,000		3,842,104
GE Capital International Funding Co. 4.418%, 11/15/35		2,700,000		2,262,870
Nomura Holdings, Inc. 6.700%, 03/04/20		1,325,000		1,376,490
Visa, Inc. 2.800%, 12/14/22 (b)		3,000,000		2,965,110
				15,126,634
Electric—1.7%
Connecticut Light & Power Co. (The) 4.000%, 04/01/48 (b)		1,000,000		983,330
Consolidated Edison Co. of New York, Inc.
3.950%, 03/01/43		3,070,000		2,845,644
Dominion Energy, Inc. 3.900%, 10/01/25		1,900,000		1,888,220
DTE Electric Co. 3.700%, 03/15/45		4,000,000		3,717,800
Duke Energy Carolinas LLC 5.300%, 02/15/40		2,000,000		2,270,100
Duke Energy Corp. 3.050%, 08/15/22		4,000,000		3,921,600
Exelon Corp.
3.400%, 04/15/26		3,000,000		2,843,190
5.625%, 06/15/35		1,500,000		1,629,795
FirstEnergy Corp. 3.900%, 07/15/27		2,000,000		1,937,360
Florida Power & Light Co. 5.950%, 02/01/38		1,700,000		2,094,094
Electric—(Continued)
Georgia Power Co. 4.300%, 03/15/42		2,000,000		1,843,440
Northern States Power Co. 6.250%, 06/01/36		2,200,000		2,750,242
Ohio Power Co. 5.375%, 10/01/21		1,640,000		1,734,956
Oncor Electric Delivery Co. LLC 7.000%, 05/01/32		950,000		1,231,285
Pacific Gas & Electric Co. 5.400%, 01/15/40		3,320,000		2,932,656
PacifiCorp 2.950%, 02/01/22		2,800,000		2,773,260
PPL Capital Funding, Inc. 3.400%, 06/01/23 (b)		2,000,000		1,960,380
PSEG Power LLC 8.625%, 04/15/31		1,000,000		1,301,170
Sempra Energy 3.400%, 02/01/28		2,100,000		1,921,626
				42,580,148
Electrical Components & Equipment—0.1%
Emerson Electric Co. 4.875%, 10/15/19 (b)		1,800,000		1,824,786
Environmental Control—0.1%
Waste Management, Inc. 7.000%, 07/15/28		1,265,000		1,527,057
Food—0.4%
General Mills, Inc. 4.200%, 04/17/28 (b)		1,500,000		1,469,310
Kraft Heinz Foods Co. 3.000%, 06/01/26 (b)		3,300,000		2,944,689
Kroger Co. (The) 3.300%, 01/15/21		1,900,000		1,891,526
Sysco Corp. 2.600%, 06/12/22		2,400,000		2,313,240
Tyson Foods, Inc. 3.550%, 06/02/27 (b)		1,200,000		1,120,464
				9,739,229
Forest Products & Paper—0.1%
Georgia-Pacific LLC 8.000%, 01/15/24		1,800,000		2,161,188
International Paper Co. 3.000%, 02/15/27 (b)		1,500,000		1,372,305
				3,533,493
Gas—0.1%
NiSource, Inc. 4.800%, 02/15/44		1,500,000		1,453,515
Healthcare-Products—0.5%
Abbott Laboratories 4.750%, 11/30/36		3,000,000		3,133,620

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Healthcare-Products—(Continued)
Becton Dickinson & Co. 4.669%, 06/06/47		2,000,000	$	1,881,980
Medtronic, Inc. 4.625%, 03/15/45		3,000,000		3,154,380
Thermo Fisher Scientific, Inc. 4.150%, 02/01/24		3,445,000		3,496,055
				11,666,035
Healthcare-Services—0.5%
Aetna, Inc. 2.750%, 11/15/22		3,000,000		2,874,450
Anthem, Inc. 5.850%, 01/15/36		1,800,000		2,017,692
Laboratory Corp. of America Holdings 4.625%, 11/15/20		1,900,000		1,941,857
UnitedHealth Group, Inc.
3.750%, 07/15/25		3,600,000		3,638,052
4.250%, 06/15/48		1,000,000		999,460
				11,471,511
Insurance—0.9%
Aflac, Inc. 3.625%, 06/15/23		1,475,000		1,481,195
Allstate Corp. (The) 7.450%, 05/16/19		1,700,000		1,725,653
American International Group, Inc.
3.300%, 03/01/21 (b)		3,000,000		2,989,140
4.500%, 07/16/44		1,100,000		977,801
AXA S.A. 8.600%, 12/15/30		1,165,000		1,439,882
Berkshire Hathaway, Inc. 3.125%, 03/15/26 (b)		2,900,000		2,811,115
Chubb Corp. (The) 6.000%, 05/11/37		865,000		1,039,790
Chubb INA Holdings, Inc. 3.350%, 05/15/24		2,000,000		1,986,960
Hartford Financial Services Group, Inc. (The) 6.100%, 10/01/41		780,000		921,398
Marsh & McLennan Cos., Inc. 3.750%, 03/14/26 (b)		4,000,000		3,951,400
Principal Financial Group, Inc. 3.100%, 11/15/26		1,000,000		934,250
Prudential Financial, Inc. 5.700%, 12/14/36		1,525,000		1,720,246
				21,978,830
Internet—0.3%
Alibaba Group Holding, Ltd. 4.200%, 12/06/47 (b)		1,400,000		1,243,284
Amazon.com, Inc.
3.800%, 12/05/24 (b)		1,800,000		1,842,768
3.875%, 08/22/37		1,900,000		1,848,187
Internet—(Continued)
eBay, Inc. 3.600%, 06/05/27 (b)		1,500,000		1,401,465
				6,335,704
Iron/Steel—0.0%
Vale Overseas, Ltd. 6.875%, 11/21/36		528,000		603,198
Machinery-Construction & Mining—0.1%
Caterpillar, Inc. 3.803%, 08/15/42 (b)		1,500,000		1,397,490
Machinery-Diversified—0.1%
Deere & Co. 2.600%, 06/08/22		1,950,000		1,910,259
Media—1.1%
21st Century Fox America, Inc. 6.550%, 03/15/33		1,950,000		2,445,358
Charter Communications Operating LLC / Charter Communications Operating Capital Corp. 4.464%, 07/23/22		2,800,000		2,826,964
Comcast Corp.
3.150%, 03/01/26 (b)		2,000,000		1,909,440
3.969%, 11/01/47		2,900,000		2,603,881
4.650%, 07/15/42		3,670,000		3,672,092
5.650%, 06/15/35		1,500,000		1,644,015
Discovery Communications LLC 6.350%, 06/01/40		1,800,000		1,887,426
Time Warner Cable LLC
5.000%, 02/01/20 (b)		1,900,000		1,927,626
6.550%, 05/01/37		100,000		101,091
Time Warner Entertainment Co. L.P. 8.375%, 03/15/23		380,000		433,360
Time Warner, Inc.
6.100%, 07/15/40		925,000		956,395
7.700%, 05/01/32		685,000		872,217
Viacom, Inc. 4.375%, 03/15/43		3,500,000		2,828,350
Walt Disney Co. (The) 2.950%, 06/15/27 (b)		2,000,000		1,911,980
Warner Media LLC 3.600%, 07/15/25		1,900,000		1,802,568
				27,822,763
Mining—0.2%
Newmont Mining Corp. 6.250%, 10/01/39		1,800,000		1,961,514
Rio Tinto Alcan, Inc. 6.125%, 12/15/33		1,751,000		2,099,537
				4,061,051
Miscellaneous Manufacturing—0.3%
3M Co. 3.625%, 10/15/47		1,000,000		926,850

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Miscellaneous Manufacturing—(Continued)
General Electric Co.
3.375%, 03/11/24		2,900,000	$	2,683,196
5.300%, 02/11/21 (b)		1,915,000		1,918,600
6.750%, 03/15/32		1,250,000		1,303,188
7.500%, 08/21/35		100,000		104,681
Ingersoll-Rand Luxembourg Finance S.A. 2.625%, 05/01/20		1,200,000		1,187,964
				8,124,479
Multi-National—1.4%
African Development Bank 1.875%, 03/16/20		1,000,000		991,240
Asian Development Bank
1.625%, 08/26/20 (b)		4,000,000		3,937,200
2.000%, 02/16/22 (b)		2,000,000		1,964,820
European Investment Bank
1.625%, 12/15/20 (b)		2,000,000		1,962,280
1.875%, 02/10/25 (b)		2,500,000		2,375,375
2.500%, 10/15/24 (b)		3,800,000		3,756,072
4.000%, 02/16/21		1,700,000		1,749,453
4.875%, 02/15/36		1,100,000		1,349,766
Inter-American Development Bank
2.125%, 01/15/25		6,000,000		5,795,280
2.375%, 07/07/27 (b)		1,500,000		1,446,615
7.000%, 06/15/25		200,000		245,010
International Bank for Reconstruction & Development
2.125%, 03/03/25 (b)		3,000,000		2,899,410
2.500%, 07/29/25		2,000,000		1,971,140
7.625%, 01/19/23		2,970,000		3,529,132
International Finance Corp. 1.125%, 07/20/21 (b)		1,600,000		1,542,848
				35,515,641
Oil & Gas—1.5%
Apache Finance Canada Corp. 7.750%, 12/15/29		300,000		355,848
BP Capital Markets America, Inc. 3.245%, 05/06/22		3,900,000		3,875,040
Canadian Natural Resources, Ltd. 6.250%, 03/15/38		1,800,000		1,964,646
Chevron Corp. 3.191%, 06/24/23 (b)		2,025,000		2,021,598
ConocoPhillips Canada Funding Co. I 5.950%, 10/15/36 (b)		1,550,000		1,834,998
ConocoPhillips Holding Co. 6.950%, 04/15/29		700,000		856,058
Equinor ASA 3.250%, 11/10/24 (b)		3,100,000		3,080,346
Exxon Mobil Corp. 3.176%, 03/15/24		2,900,000		2,900,754
Marathon Oil Corp. 6.600%, 10/01/37		2,000,000		2,147,060
Noble Energy, Inc. 3.900%, 11/15/24		4,200,000		4,051,698
Oil & Gas—(Continued)
Occidental Petroleum Corp.
3.400%, 04/15/26 (b)		1,000,000		978,450
Petroleos Mexicanos
4.875%, 01/24/22		1,900,000		1,852,101
6.625%, 06/15/35 (b)		3,400,000		2,970,478
6.750%, 09/21/47		1,700,000		1,408,688
Phillips 66 4.875%, 11/15/44		1,000,000		974,990
Shell International Finance B.V. 1.875%, 05/10/21		3,000,000		2,916,810
Total Capital International S.A. 2.700%, 01/25/23		1,500,000		1,466,610
Valero Energy Corp. 3.400%, 09/15/26		1,000,000		917,290
				36,573,463
Oil & Gas Services—0.2%
Halliburton Co. 3.500%, 08/01/23		4,000,000		3,946,280
Pharmaceuticals—1.4%
AbbVie, Inc. 4.400%, 11/06/42		3,200,000		2,821,760
Allergan Funding SCS 3.800%, 03/15/25 (b)		2,400,000		2,341,224
AstraZeneca plc 4.000%, 09/18/42		1,200,000		1,087,944
CVS Health Corp.
3.350%, 03/09/21		1,500,000		1,495,470
3.700%, 03/09/23		3,000,000		2,970,540
5.050%, 03/25/48		1,500,000		1,463,445
5.125%, 07/20/45		1,900,000		1,852,709
Express Scripts Holding Co.
4.500%, 02/25/26		2,700,000		2,738,097
6.125%, 11/15/41		313,000		357,283
GlaxoSmithKline Capital, Inc. 3.875%, 05/15/28 (b)		2,000,000		2,033,840
Johnson & Johnson
3.700%, 03/01/46 (b)		2,000,000		1,903,140
5.950%, 08/15/37		910,000		1,145,426
Merck & Co., Inc.
2.400%, 09/15/22		1,000,000		975,670
6.550%, 09/15/37		1,000,000		1,327,090
Merck Sharp & Dohme Corp. 5.950%, 12/01/28		300,000		357,792
Novartis Capital Corp. 4.400%, 04/24/20 (b)		900,000		917,469
Sanofi 4.000%, 03/29/21 (b)		2,775,000		2,835,329
Shire Acquisitions Investments Ireland DAC 3.200%, 09/23/26		3,000,000		2,734,620
Wyeth LLC 5.950%, 04/01/37		3,300,000		3,975,543
				35,334,391

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Pipelines—1.0%
El Paso Natural Gas Co. LLC 8.375%, 06/15/32		220,000	$	270,787
Enbridge Energy Partners L.P. 5.875%, 10/15/25		3,000,000		3,252,780
Energy Transfer Operating L.P.
4.650%, 06/01/21		1,950,000		1,977,378
5.150%, 03/15/45		2,600,000		2,257,606
Enterprise Products Operating LLC 3.950%, 02/15/27		3,800,000		3,756,338
Kinder Morgan Energy Partners L.P. 6.500%, 02/01/37 (b)		2,000,000		2,163,900
Kinder Morgan, Inc. 4.300%, 06/01/25 (b)		1,000,000		994,790
MPLX L.P. 5.200%, 03/01/47		1,000,000		928,500
Sabine Pass Liquefaction LLC 5.625%, 04/15/23 (b)		2,700,000		2,825,064
Tennessee Gas Pipeline Co. LLC
7.000%, 10/15/28		1,050,000		1,202,512
7.625%, 04/01/37		640,000		766,304
TransCanada PipeLines, Ltd. 6.200%, 10/15/37		1,800,000		1,978,902
Williams Cos., Inc. (The) 5.250%, 03/15/20		3,575,000		3,645,821
				26,020,682
Real Estate Investment Trusts—0.6%
American Tower Corp. 3.000%, 06/15/23		2,100,000		2,014,530
Boston Properties L.P. 3.850%, 02/01/23		2,950,000		2,953,982
Digital Realty Trust L.P. 3.700%, 08/15/27		3,500,000		3,317,055
Simon Property Group L.P. 3.300%, 01/15/26 (b)		3,800,000		3,662,022
Ventas Realty L.P. 3.100%, 01/15/23		2,100,000		2,046,765
Welltower, Inc. 4.000%, 06/01/25		1,500,000		1,474,935
				15,469,289
Retail—0.7%
Home Depot, Inc. (The)
2.000%, 04/01/21 (b)		1,000,000		980,570
4.250%, 04/01/46		2,000,000		1,996,940
4.400%, 04/01/21 (b)		1,450,000		1,494,341
Lowe’s Cos., Inc. 4.050%, 05/03/47		1,500,000		1,293,345
McDonald’s Corp. 3.700%, 01/30/26		3,000,000		2,947,020
Target Corp.
4.000%, 07/01/42 (b)		1,000,000		943,440
6.350%, 11/01/32		708,000		879,414
Walgreens Boots Alliance, Inc. 2.700%, 11/18/19		3,000,000		2,986,740
Retail—(Continued)
Walmart, Inc.
2.550%, 04/11/23		4,000,000		3,904,680
5.250%, 09/01/35		935,000		1,075,596
				18,502,086
Semiconductors—0.3%
Broadcom Corp. / Broadcom Cayman Finance, Ltd. 3.000%, 01/15/22		3,100,000		2,980,836
Intel Corp.
2.700%, 12/15/22 (b)		2,000,000		1,967,860
QUALCOMM, Inc. 3.450%, 05/20/25		4,000,000		3,847,320
				8,796,016
Software—0.8%
Adobe, Inc. 4.750%, 02/01/20		2,200,000		2,243,978
Microsoft Corp.
3.125%, 11/03/25 (b)		5,100,000		5,047,317
3.300%, 02/06/27		2,000,000		1,982,260
4.250%, 02/06/47		3,000,000		3,148,500
Oracle Corp.
1.900%, 09/15/21 (b)		1,800,000		1,741,212
2.500%, 10/15/22		2,100,000		2,043,384
4.125%, 05/15/45		4,200,000		3,981,390
				20,188,041
Telecommunications—1.1%
AT&T, Inc.
4.100%, 02/15/28		2,687,000		2,583,754
4.125%, 02/17/26		3,000,000		2,933,640
5.150%, 11/15/46		1,308,000		1,215,504
5.300%, 08/15/58		2,500,000		2,316,547
7.125%, 12/15/31		100,000		109,596
British Telecommunications plc 9.625%, 12/15/30		1,000,000		1,354,580
Cisco Systems, Inc.
2.500%, 09/20/26		1,200,000		1,117,584
5.500%, 01/15/40		2,000,000		2,361,060
Deutsche Telekom International Finance B.V. 8.750%, 06/15/30		1,000,000		1,313,690
Orange S.A. 5.500%, 02/06/44 (b)		1,000,000		1,067,910
Telefonica Emisiones S.A. 4.103%, 03/08/27		1,900,000		1,835,609
Verizon Communications, Inc.
3.376%, 02/15/25		2,078,000		2,015,722
4.812%, 03/15/39		3,927,000		3,862,951
5.012%, 04/15/49		2,032,000		2,024,563
Vodafone Group plc 6.150%, 02/27/37		2,170,000		2,274,551
				28,387,261

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Transportation—0.4%
Burlington Northern Santa Fe LLC 4.150%, 04/01/45		3,900,000	$	3,799,848
CSX Corp. 6.150%, 05/01/37		1,600,000		1,883,024
FedEx Corp. 4.550%, 04/01/46		1,000,000		912,490
Norfolk Southern Corp.
3.000%, 04/01/22		1,911,000		1,897,451
5.590%, 05/17/25		28,000		30,903
Union Pacific Corp.
6.625%, 02/01/29		1,200,000		1,451,352
United Parcel Service, Inc. 5.125%, 04/01/19		760,000		763,861
				10,738,929
Total Corporate Bonds & Notes (Cost $676,248,571)				655,707,141
Foreign Government—1.7%
Electric—0.0%
Hydro-Quebec 8.400%, 01/15/22		1,000,000		1,158,370
Provincial — 0.4%
Province of British Columbia Canada 2.000%, 10/23/22		1,970,000		1,918,603
Province of Nova Scotia Canada 9.250%, 03/01/20		250,000		267,758
Province of Ontario Canada
2.450%, 06/29/22		4,000,000		3,945,560
4.400%, 04/14/20		2,100,000		2,144,436
Province of Quebec Canada 7.500%, 07/15/23		350,000		415,439
				8,691,796
Sovereign—1.3%
Colombia Government International Bonds
5.000%, 06/15/45 (b)		1,000,000		953,520
8.125%, 05/21/24		1,500,000		1,759,530
Export-Import Bank of Korea 2.250%, 01/21/20		2,000,000		1,985,720
Japan Bank for International Cooperation 1.750%, 05/28/20		5,000,000		4,933,450
Mexico Government International Bonds
5.750%, 10/12/10 (b)		2,000,000		1,880,260
6.750%, 09/27/34		1,050,000		1,199,457
8.000%, 09/24/22		2,200,000		2,531,386
Panama Government International Bonds
4.500%, 05/15/47 (c)		1,400,000		1,362,284
5.200%, 01/30/20		1,370,000		1,399,345
Peruvian Government International Bond 8.750%, 11/21/33 (b)		1,450,000		2,143,376
Sovereign—(Continued)
Philippine Government International Bonds
3.950%, 01/20/40		2,100,000		2,050,881
5.000%, 01/13/37		1,740,000		1,930,965
Poland Government International Bond 3.250%, 04/06/26 (b)		2,000,000		1,963,620
Republic of Korea 7.125%, 04/16/19		2,400,000		2,430,312
Ukraine Government AID Bond 1.471%, 09/29/21		1,600,000		1,554,784
Uruguay Government International Bond 4.375%, 10/27/27 (c)		1,900,000		1,910,773
				31,989,663
Total Foreign Government (Cost $43,336,661)				41,839,829
Mortgage-Backed Securities—1.2%
Commercial Mortgage-Backed Securities—1.2%
Commercial Mortgage Pass-Through Certificates Mortgage Trust
3.765%, 02/10/49		1,539,000		1,554,302
3.902%, 07/10/50		1,835,000		1,859,418
Commercial Mortgage Trust 3.838%, 09/10/47		3,800,000		3,873,619
GS Mortgage Securities Corp. II 3.382%, 05/10/50		1,835,000		1,823,929
GS Mortgage Securities Trust
3.135%, 06/10/46		2,935,000		2,915,861
3.377%, 05/10/45		2,520,719		2,520,719
4.243%, 08/10/46		966,000		1,001,838
JPMBB Commercial Mortgage Securities Trust
3.598%, 11/15/48		3,900,000		3,912,233
3.801%, 08/15/48		1,534,000		1,559,227
Morgan Stanley Bank of America Merrill Lynch Trust
3.544%, 01/15/49		3,850,000		3,835,081
3.635%, 10/15/48		1,547,000		1,548,856
3.732%, 05/15/48		3,750,000		3,788,174
WF-RBS Commercial Mortgage Trust 3.488%, 06/15/46		1,054,000		1,040,423
Total Mortgage-Backed Securities (Cost $32,329,822)				31,233,680
Asset-Backed Securities—0.6%
Asset-Backed - Automobile—0.3%
Ally Auto Receivables Trust 1.990%, 11/15/21		2,990,000		2,949,039
AmeriCredit Automobile Receivables Trust 3.080%, 12/18/23		1,500,000		1,483,417
Ford Credit Auto Owner Trust 3.160%, 10/15/23		1,000,000		1,006,712

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Automobile—(Continued)
Honda Auto Receivables Owner Trust 1.330%, 11/18/22		1,011,000	$	997,154
				6,436,322
Asset-Backed - Credit Card—0.3%
Capital One Multi-Asset Execution Trust 1.660%, 06/17/24		3,000,000		2,910,602
Citibank Credit Card Issuance Trust 2.880%, 01/23/23		4,924,000		4,921,201
				7,831,803
Total Asset-Backed Securities (Cost $20,594,490)				14,268,125
Municipals—0.5%
Los Angeles, CA Unified School District, Build America Bond 6.758%, 07/01/34		660,000		849,360
Municipal Electric Authority of Georgia, Build America Bond 6.637%, 04/01/57		1,999,000		2,113,423
New Jersey State Turnpike Authority, Build America Bond 7.414%, 01/01/40		1,700,000		2,395,300
Oregon School Boards Association, General Obligation Unlimited 5.680%, 06/30/28		1,900,000		2,206,508
State of California General Obligation Unlimited, Build America Bond 7.300%, 10/01/39		2,000,000		2,745,440
State of Illinois, General Obligation Unlimited 5.100%, 06/01/33		1,230,000		1,172,719
Total Municipals (Cost $10,434,358)				11,482,750
Short-Term Investment—0.1%
U.S. Treasury—0.1%
U.S. Treasury Bill 1.997%, 01/08/19 (d)		2,500,000		2,499,064
Total Short-Term Investments (Cost $2,498,906)				2,499,064
Securities Lending Reinvestments (e)—8.3%
Certificates of Deposit—4.8%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (a)		5,000,000		4,999,570
2.820%, 1M LIBOR + 0.350%, 05/20/19 (a)		3,000,000		2,999,937
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (a)		2,000,000		1,999,950
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (a)		8,000,000		8,003,192
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (a)		5,000,000		4,999,525
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (a)		2,000,000		1,999,196
Certificates of Deposit—(Continued)
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (a)		5,000,000		4,999,360
2.740%, 1M LIBOR + 0.270%, 07/19/19 (a)		3,000,000		2,998,782
Citibank N.A. 2.490%, 02/04/19		7,000,000		6,999,027
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (a)		2,500,000		2,500,008
Credit Agricole S.A. 2.799%, 1M LIBOR + 0.320%, 05/21/19 (a)		3,000,000		3,000,189
Credit Industriel et Commercial Zero Coupon, 01/25/19		4,936,141		4,991,500
Credit Industriel et Commercial (NY) 2.629%, 1M LIBOR + 0.250%, 02/05/19 (a)		2,500,000		2,500,062
Credit Suisse AG 2.620%, 04/01/19		5,000,000		4,997,410
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		4,000,000		3,999,704
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		4,962,437		4,994,900
Natixis New York 2.940%, SOFR + 0.480%, 06/12/19 (a)		2,000,000		1,999,788
Natixis S.A. New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (a)		3,000,000		2,998,110
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (a)		1,000,000		999,918
Standard Chartered plc
2.686%, 1M LIBOR + 0.180%, 02/25/19 (a)		5,000,000		4,999,855
2.717%, 3M LIBOR + 0.230%, 04/24/19 (a)		3,000,000		2,999,346
2.785%, 1M LIBOR + 0.330%, 05/17/19 (a)		2,000,000		1,999,954
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (a)		7,000,000		6,997,431
Sumitomo Mitsui Banking Corp., New York 2.559%, 1M LIBOR + 0.180%, 03/05/19 (a)		2,000,000		1,999,526
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		1,985,555		1,989,140
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (a)		4,000,000		3,999,820
U.S. Bank N.A.
2.764%, 1M LIBOR + 0.260%, 07/23/19 (a)		4,000,000		4,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (a)		10,000,000		10,008,674
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (a)		7,000,000		6,999,956
				118,973,830
Commercial Paper—1.5%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (a)		4,000,000		3,998,892
Banco Santander S.A. 2.740%, 02/07/19		3,971,991		3,988,352
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (a)		2,000,000		2,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (a)		2,000,000		2,000,186
2.725%, 3M LIBOR + 0.110%, 05/10/19 (a)		2,000,000		1,999,764

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (e)—(Continued)

Security Description	Principal Amount*		Value
Commercial Paper—(Continued)
Matchpoint Finance plc 2.890%, 05/08/19		3,941,879	$	3,957,012
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (a)		5,000,000		4,999,920
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (a)		10,000,000		10,002,450
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (a)		5,000,000		4,999,800
				37,946,376
Master Demand Notes—0.2%
Natixis Financial Products LLC 2.740%, OBFR + 0.350%, 02/04/19 (a)		5,000,000		5,000,000
Repurchase Agreements—1.6%
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.660%, due on 01/07/19 with a maturity value of $4,002,069; collateralized by U.S. Treasury Obligations with rates ranging from 0.625% - 3.125%, maturity dates ranging from 02/15/42 - 02/15/46, and various Common Stock with an aggregate market value of $4,217,144.		4,000,000		4,000,000
Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $5,013,563; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $5,441,594.		5,000,000		5,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,511,270; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $1,530,000.		1,500,000		1,500,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $1,175,831; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $1,199,135.		1,175,622		1,175,622
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $4,130,805; collateralized by various Common Stock with an aggregate market value of $4,510,000.		4,100,000		4,100,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $8,060,107; collateralized by various Common Stock with an aggregate market value of $8,800,000.		8,000,000		8,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $6,003,022; collateralized by various Common Stock with an aggregate market value of $6,679,931.		6,000,000		6,000,000
Repurchase Agreements—(Continued)
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $4,002,014; collateralized by various Common Stock with an aggregate market value of $4,453,288.		4,000,000		4,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $4,802,389; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $5,258,284.		4,800,000		4,800,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $2,401,195; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $2,629,142.		2,400,000		2,400,000
				40,975,622
Time Deposit—0.2%
Royal Bank of Canada 2.420%, 01/02/19		4,000,000		4,000,000
Total Securities Lending Reinvestments (Cost $206,900,622)				206,895,828
Total Investments—107.6% (Cost $2,702,273,298)				2,671,520,436
Other assets and liabilities (net)—(7.6)%				(188,625,622	)
Net Assets—100.0%			$	2,482,894,814

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $201,519,074 and the collateral received consisted of cash in the amount of $206,773,625. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(c)	Principal amount of security is adjusted for inflation.
(d)	The rate shown represents current yield to maturity.
(e)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $996,990, which is 0.0% of net assets.
(CMO)—	Collateralized Mortgage Obligation

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Schedule of Investments as of December 31, 2018

(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(OBFR)—	U.S. Overnight Bank Funding Rate
(SOFR)—	Secured Overnight Financing Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Total U.S. Treasury & Government Agencies*	$	—	$	1,707,594,019		$	—	$	1,707,594,019
Total Corporate Bonds & Notes*		—		655,707,141			—		655,707,141
Total Foreign Government*		—		41,839,829			—		41,839,829
Total Mortgage-Backed Securities*		—		31,233,680			—		31,233,680
Total Asset-Backed Securities*		—		14,268,125			—		14,268,125
Total Municipals		—		11,482,750			—		11,482,750
Total Short-Term Investment*		—		2,499,064			—		2,499,064
Total Securities Lending Reinvestments*		—		206,895,828			—		206,895,828
Total Investments	$	—	$	2,671,520,436		$	—	$	2,671,520,436
Collateral for Securities Loaned (Liability)	$	—	$	(206,773,625	)	$	—	$	(206,773,625	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	2,671,520,436
Cash		55,055
Receivable for:
Investments sold		18,959,028
Fund shares sold		3,995,018
Interest		16,149,214
Prepaid expenses		6,935
Total Assets		2,710,685,686
Liabilities
Collateral for securities loaned		206,773,625
Payables for:
Investments purchased		8,630,809
Fund shares redeemed		11,102,552
Accrued Expenses:
Management fees		517,525
Distribution and service fees		264,112
Deferred trustees’ fees		111,323
Other expenses		390,926
Total Liabilities		227,790,872
Net Assets	$	2,482,894,814
Net Assets Consist of:
Paid in surplus	$	2,523,104,413
Distributable earnings (Accumulated losses)		(40,209,599	)
Net Assets	$	2,482,894,814
Net Assets
Class A	$	1,293,641,453
Class B		824,771,699
Class E		52,259,648
Class G		312,222,014
Capital Shares Outstanding*
Class A		122,594,137
Class B		79,895,458
Class E		4,981,476
Class G		30,360,639
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	10.55
Class B		10.32
Class E		10.49
Class G		10.28

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $2,702,273,298.
(b)	Includes securities loaned at value of $201,519,074.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Interest	$	76,410,583
Securities lending income		1,011,049
Total investment income		77,421,632
Expenses
Management fees		6,532,200
Administration fees		92,425
Custodian and accounting fees		251,407
Distribution and service fees—Class B		2,234,474
Distribution and service fees—Class E		84,025
Distribution and service fees—Class G		956,596
Audit and tax services		92,932
Legal		45,317
Trustees’ fees and expenses		33,733
Shareholder reporting		254,178
Insurance		17,053
Miscellaneous		32,373
Total expenses		10,626,713
Less management fee waiver		(216,932	)
Net expenses		10,409,781
Net Investment Income		67,011,851
Net Realized and Unrealized Loss
Net realized loss on investments		(2,602,372	)
Net change in unrealized depreciation on investments		(76,723,188	)
Net realized and unrealized loss		(79,325,560	)
Net Decrease in Net Assets From Operations	$	(12,313,709	)

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	67,011,851		$	63,880,811
Net realized gain (loss)		(2,602,372	)		7,610,419
Net change in unrealized appreciation (depreciation)		(76,723,188	)		12,433,886
Increase (decrease) in net assets from operations		(12,313,709	)		83,925,116
From Distributions to Shareholders (a)
Class A		(40,620,231	)		(38,670,834	)
Class B		(25,318,977	)		(26,417,841	)
Class E		(1,621,378	)		(1,698,687	)
Class G		(8,969,174	)		(8,827,881	)
Total distributions		(76,529,760	)		(75,615,243	)
Increase (decrease) in net assets from capital share transactions		(147,877,103	)		50,385,070
Total increase (decrease) in net assets		(236,720,572	)		58,694,943
Net Assets
Beginning of period		2,719,615,386			2,660,920,443
End of period	$	2,482,894,814		$	2,719,615,386	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		7,811,010		$	83,227,218			9,597,934		$	104,655,031
Reinvestments		3,932,259			40,620,231			3,574,014			38,670,834
Redemptions		(15,087,766	)		(158,992,730	)		(6,734,519	)		(73,618,212	)
Net increase (decrease)		(3,344,497	)	$	(35,145,281	)		6,437,429		$	69,707,653
Class B
Sales		2,704,053		$	27,987,348			3,934,275		$	41,976,475
Reinvestments		2,501,875			25,318,977			2,489,900			26,417,841
Redemptions		(14,670,824	)		(150,861,531	)		(8,608,962	)		(92,021,533	)
Net decrease		(9,464,896	)	$	(97,555,206	)		(2,184,787	)	$	(23,627,217	)
Class E
Sales		190,181		$	2,005,901			294,447		$	3,195,564
Reinvestments		157,875			1,621,378			157,724			1,698,687
Redemptions		(892,352	)		(9,342,466	)		(616,136	)		(6,685,675	)
Net decrease		(544,296	)	$	(5,715,187	)		(163,965	)	$	(1,791,424	)
Class G
Sales		3,960,786		$	40,765,196			4,460,762		$	47,491,947
Reinvestments		889,799			8,969,174			835,183			8,827,881
Redemptions		(5,767,983	)		(59,195,799	)		(4,717,044	)		(50,223,770	)
Net increase (decrease)		(917,398	)	$	(9,461,429	)		578,901		$	6,096,058
Increase (decrease) derived from capital shares transactions				$	(147,877,103	)				$	50,385,070

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $76,054,727 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.90		$	10.87		$	10.92		$	11.22		$	10.93
Income (Loss) from Investment Operations
Net investment income (a)		0.28			0.27			0.27			0.28			0.29
Net realized and unrealized gain (loss)		(0.31	)		0.08			(0.01	)		(0.25	)		0.33
Total income (loss) from investment operations		(0.03	)		0.35			0.26			0.03			0.62
Less Distributions
Distributions from net investment income		(0.32	)		(0.32	)		(0.31	)		(0.33	)		(0.33	)
Total distributions		(0.32	)		(0.32	)		(0.31	)		(0.33	)		(0.33	)
Net Asset Value, End of Period	$	10.55		$	10.90		$	10.87		$	10.92		$	11.22
Total Return (%) (b)		(0.18	)		3.26			2.35			0.25			5.81
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.28			0.28			0.28			0.28			0.28
Net ratio of expenses to average net assets (%) (c)		0.27			0.27			0.27			0.27			0.28
Ratio of net investment income to average net assets (%)		2.69			2.50			2.39			2.48			2.62
Portfolio turnover rate (%)		19			22			16			18			13
Net assets, end of period (in millions)	$	1,293.6		$	1,373.3		$	1,299.2		$	1,177.2		$	1,008.2
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.67		$	10.65		$	10.70		$	10.99		$	10.72
Income (Loss) from Investment Operations
Net investment income (a)		0.25			0.24			0.23			0.24			0.26
Net realized and unrealized gain (loss)		(0.30	)		0.07			0.01			(0.23	)		0.32
Total income (loss) from investment operations		(0.05	)		0.31			0.24			0.01			0.58
Less Distributions
Distributions from net investment income		(0.30	)		(0.29	)		(0.29	)		(0.30	)		(0.31	)
Total distributions		(0.30	)		(0.29	)		(0.29	)		(0.30	)		(0.31	)
Net Asset Value, End of Period	$	10.32		$	10.67		$	10.65		$	10.70		$	10.99
Total Return (%) (b)		(0.45	)		2.96			2.14			0.09			5.48
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.53			0.53			0.53			0.53			0.53
Net ratio of expenses to average net assets (%) (c)		0.52			0.52			0.52			0.52			0.53
Ratio of net investment income to average net assets (%)		2.44			2.25			2.14			2.23			2.37
Portfolio turnover rate (%)		19			22			16			18			13
Net assets, end of period (in millions)	$	824.8		$	953.7		$	974.5		$	973.6		$	997.1

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.84		$	10.81		$	10.86		$	11.15		$	10.87
Income (Loss) from Investment Operations
Net investment income (a)		0.27			0.25			0.25			0.26			0.27
Net realized and unrealized gain (loss)		(0.31	)		0.09			(0.01	)		(0.24	)		0.33
Total income (loss) from investment operations		(0.04	)		0.34			0.24			0.02			0.60
Less Distributions
Distributions from net investment income		(0.31	)		(0.31	)		(0.29	)		(0.31	)		(0.32	)
Total distributions		(0.31	)		(0.31	)		(0.29	)		(0.31	)		(0.32	)
Net Asset Value, End of Period	$	10.49		$	10.84		$	10.81		$	10.86		$	11.15
Total Return (%) (b)		(0.34	)		3.12			2.19			0.19			5.58
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.43			0.43			0.43			0.43			0.43
Net ratio of expenses to average net assets (%) (c)		0.42			0.42			0.42			0.42			0.43
Ratio of net investment income to average net assets (%)		2.54			2.35			2.24			2.33			2.47
Portfolio turnover rate (%)		19			22			16			18			13
Net assets, end of period (in millions)	$	52.3		$	59.9		$	61.5		$	67.0		$	76.9
	Class G
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.63		$	10.61		$	10.67		$	10.97		$	10.70
Income (Loss) from Investment Operations
Net investment income (a)		0.25			0.23			0.23			0.24			0.25
Net realized and unrealized gain (loss)		(0.31	)		0.08			0.00			(0.25	)		0.33
Total income (loss) from investment operations		(0.06	)		0.31			0.23			(0.01	)		0.58
Less Distributions
Distributions from net investment income		(0.29	)		(0.29	)		(0.29	)		(0.29	)		(0.31	)
Total distributions		(0.29	)		(0.29	)		(0.29	)		(0.29	)		(0.31	)
Net Asset Value, End of Period	$	10.28		$	10.63		$	10.61		$	10.67		$	10.97
Total Return (%) (b)		(0.49	)		2.94			2.09			(0.06	)		5.46
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.58			0.58			0.58			0.58			0.58
Net ratio of expenses to average net assets (%) (c)		0.57			0.57			0.57			0.57			0.58
Ratio of net investment income to average net assets (%)		2.39			2.20			2.09			2.18			2.32
Portfolio turnover rate (%)		19			22			16			18			13
Net assets, end of period (in millions)	$	312.2		$	332.6		$	325.7		$	257.7		$	223.3

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Aggregate Bond Index Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued on the basis of evaluated or composite bid quotations obtained from pricing services selected by the Adviser pursuant to the authorization of and subject to general oversight by the Board. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or

BHFTII-24

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Futures contracts that are traded on commodity exchanges are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Mortgage-Related and Other Asset-Backed Securities - The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early

BHFTII-25

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

When-Issued and Delayed-Delivery Securities- The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s Custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $40,975,622. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

BHFTII-26

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions, which are accounted for as secured borrowings.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Corporate Bonds & Notes	$	(78,660,011	)	$	—	$	—	$	—	$	(78,660,011	)
Foreign Government		(5,530,547	)		—		—		—		(5,530,547	)
U.S. Treasury & Government Agencies		(122,583,067	)		—		—		—		(122,583,067	)
Total	$	(206,773,625	)	$	—	$	—	$	—	$	(206,773,625	)
Total Borrowings	$	(206,773,625	)	$	—	$	—	$	—	$	(206,773,625	)
Gross amount of recognized liabilities for securities lending transactions										$	(206,773,625	)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$390,713,923	$	109,338,006	$	464,633,592	$	178,636,786

BHFTII-27

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2018 were $6,532,200.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Advisors, LLC (“MIA”) with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIA an investment subadvisory fee for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.040%	On the first $500 million
0.030%	Of the next $500 million
0.015%	On amounts over $1 billion

Fees earned by MIA with respect to the Portfolio for the year ended December 31, 2018 were $591,932.

Management Fee Waivers -Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.005%	Over $500 million and under $1 billion
0.010%	Of the next $1 billion
0.015%	On amounts over $2 billion

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class E and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.15% of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

BHFTII-28

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	2,725,372,886
Gross unrealized appreciation		23,298,059
Gross unrealized depreciation		(77,150,509	)
Net unrealized appreciation (depreciation)	$	(53,852,450	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$76,529,760	$	75,615,243	$	—	$	—	$	76,529,760	$	75,615,243

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses			Total
$76,589,245	$	—	$	(53,852,450	)	$	(62,835,071	)	$	(40,098,276	)

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had accumulated short-term capital losses of $9,341,024 and accumulated long-term capital losses of $53,494,047.

8. Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards UpdateNo. 2017-08 “Premium Amortization of Purchased Callable Debt Securities”, which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently assessing the impact of ASU 2017-08, but does not believe the adoption will have a material impact on the Portfolios’ financial statements.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-29

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MetLife Aggregate Bond Index Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Aggregate Bond Index Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Aggregate Bond Index Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-30

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-31

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-32

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-33

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-34

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-35

Brighthouse Funds Trust II

MetLife Aggregate Bond Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MetLife Aggregate Bond Index Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, for theone-, three-, and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median, below the Expense Universe median, and above theSub-advised Expense Universe median. The Board further considered that the Portfolio’s total expenses (exclusive of12b-1 fees) were equal to the Expense Group median but below the Expense Universe median and theSub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group andSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-36

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Managed by MetLife Investment Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, E, and G shares of the MetLife Mid Cap Stock Index Portfolio returned-11.30%,-11.51%,-11.44%, and-11.56%, respectively. The Portfolio’s benchmark, the Standard & Poor’s (“S&P”) MidCap 400 Index¹, returned-11.08%.

MARKET ENVIRONMENT / CONDITIONS

Equity markets ended the period down with outperformance in the middle of the year bracketed by underperformance during the first and fourth quarters. The main concerns during the year were slowing global growth, political unrest in Europe, a more hawkish Federal Reserve (the “Fed”), and continued fears about a global trade war. Equity markets were impacted as the10-year Treasury yield reached its highest level since 2014, which was driven by a more hawkish Fed and higher than expected wage growth. Equity markets also feared the impact of President Trump’s plan to impose tariffs on steel and aluminum imports and Fed Chair Powell’s Congressional testimony during the first quarter where he hinted at the possibility of four rate hikes during the year. Other issues equity investors were concerned about included unrest in the Middle East, political uncertainty in Italy, and the U.S. withdrawal from the Iran nuclear deal. In the middle of the year, equity markets rallied as trade negotiations eased concerns of a global trade war and leaders of North and South Korea met for the first time since 2007. Equity markets also reacted favorably after Fed Chair Powell made dovish comments in the third quarter during the Jackson Hole symposium and progress was made with trade negotiations with the European Union and the North American Free Trade Agreement. Equity markets underperformed again towards the end of the year on concerns about a weakening global economy, the partial U.S. government shut-down, and continued uncertainty surrounding Brexit.

During the year, the Federal Open Market Committee (the “FOMC”) met eight times and raised the target for the Federal Funds Rate four times from a range of 1.25%—1.50% to a range of 2.25%—2.50%. The FOMC stated that the labor market had continued to strengthen, and that economic activity had been rising at a strong rate. The FOMC also stated that job gains had been strong, and the unemployment rate had remained low.

Three of the eleven sectors comprising the S&P MidCap 400 Index experienced positive returns for the year. Utilities (5.3% beginning weight in the benchmark), up 6.7%, was the best-performing sector. Health Care (7.5% beginning weight), up 6.5%; and Communication Services (0.1% beginning weight), up 0.2%, were the next best-performing sectors. Energy (4.3% beginning weight), down 29.4%; Materials (7.2% beginning weight), down 20.4%; and Consumer Discretionary (12.1% beginning weight), down 17.6%, were the worst-performing sectors.

The stocks with the largest positive impact on the Portfolio return for the year were Abiomed (sold on 5/30/18), up 107.3%; Bioverativ (acquired on 3/17/18), up 94.1%; and Fortinet (sold on 10/10/18), up 82.1%. The stocks with the largest negative impact were Thor Industries, down 64.8%; Coherent, down 62.5%; and ManpowerGroup, down 47.4% (all three were held throughout the entire year).

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio is managed utilizing a full replication strategy versus the S&P MidCap 400 Index. This strategy seeks to replicate the performance of the Index by owning all of the components of the Index at their respective Index capitalization weights. The Portfolio is periodically rebalanced for compositional changes in the S&P MidCap 400 Index. Factors that impact tracking error include transaction costs, cash drag, securities lending activity, Net Asset Value rounding, contributions, and withdrawals.

Stacey Lituchy

Norman Hu

Mirsad Usejnoski

Portfolio Managers

MetLife Investment Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

A $10,000 INVESTMENT COMPARED TO THE S&P MIDCAP 400 INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
MetLife Mid Cap Stock Index Portfolio
Class A		-11.30		5.78		13.41		—
Class B		-11.51		5.51		13.13		—
Class E		-11.44		5.62		13.24		—
Class G		-11.56		5.47		—		13.30
S&P MidCap 400 Index		-11.08		6.03		13.68		—

¹ The S&P MidCap 400 Index is an unmanaged index measuring the performance of the mid-size company segment of the U.S. market. The Index consists of 400 domestic stocks chosen for market size, liquidity, and industry group representation.

² Inception dates of the Class A, Class B, Class E and Class G shares are 7/5/00, 1/2/01, 5/1/01 and 4/28/09, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
SPDR S&P MidCap 400 ETF Trust		1.9
Teleflex, Inc.		0.8
Atmos Energy Corp.		0.7
Domino’s Pizza, Inc.		0.7
IDEX Corp.		0.6
UGI Corp.		0.6
Alleghany Corp.		0.6
STERIS plc		0.6
PTC, Inc.		0.6
Reinsurance Group of America, Inc.		0.6

Top Sectors

	% of Net Assets
Financials		17.8
Industrials		15.0
Information Technology		14.8
Consumer Discretionary		11.4
Health Care		9.7
Real Estate		9.4
Materials		6.4
Utilities		5.5
Energy		3.6
Consumer Staples		2.9

BHFTII-2

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MetLife Mid Cap Stock Index Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.29	%	$	1,000.00	$	858.00	$	1.36
	Hypothetical*		0.29	%	$	1,000.00	$	1,023.74	$	1.48
Class B (a)	Actual		0.54	%	$	1,000.00	$	857.40	$	2.53
	Hypothetical*		0.54	%	$	1,000.00	$	1,022.48	$	2.75
Class E (a)	Actual		0.44	%	$	1,000.00	$	857.40	$	2.06
	Hypothetical*		0.44	%	$	1,000.00	$	1,022.99	$	2.24
Class G (a)	Actual		0.59	%	$	1,000.00	$	856.90	$	2.76
	Hypothetical*		0.59	%	$	1,000.00	$	1,022.23	$	3.01

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—97.1% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—1.0%
Curtiss-Wright Corp.		26,642	$	2,720,681
Esterline Technologies Corp. (a)		16,163		1,962,996
Teledyne Technologies, Inc. (a)		21,951		4,545,394
				9,229,071
Airlines—0.3%
JetBlue Airways Corp. (a) (b)		185,432		2,978,038
Auto Components—0.8%
Adient plc (c)		52,844		795,831
Dana, Inc.		88,013		1,199,617
Delphi Technologies plc		53,838		770,960
Gentex Corp.		159,472		3,222,929
Visteon Corp. (a)		17,589		1,060,265
				7,049,602
Automobiles—0.2%
Thor Industries, Inc.		30,521		1,587,092
Banks—7.2%
Associated Banc-Corp.		100,861		1,996,039
BancorpSouth Bank		55,184		1,442,510
Bank of Hawaii Corp. (c)		25,402		1,710,063
Bank OZK		73,546		1,679,055
Cathay General Bancorp (c)		46,860		1,571,216
Chemical Financial Corp.		43,467		1,591,327
Commerce Bancshares, Inc.		60,395		3,404,466
Cullen/Frost Bankers, Inc.		38,904		3,421,218
East West Bancorp, Inc.		88,193		3,839,041
First Horizon National Corp.		197,087		2,593,665
FNB Corp. (c)		197,302		1,941,452
Fulton Financial Corp. (c)		107,136		1,658,465
Hancock Whitney Corp.		51,815		1,795,390
Home BancShares, Inc.		96,795		1,581,630
International Bancshares Corp.		33,406		1,149,166
MB Financial, Inc.		51,249		2,030,998
PacWest Bancorp		74,084		2,465,516
Pinnacle Financial Partners, Inc.		44,544		2,053,478
Prosperity Bancshares, Inc. (c)		40,365		2,514,740
Signature Bank		32,478		3,339,063
Sterling Bancorp		136,542		2,254,308
Synovus Financial Corp.		100,860		3,226,511
TCF Financial Corp.		101,484		1,977,923
Texas Capital Bancshares, Inc. (a)		30,530		1,559,778
Trustmark Corp. (c)		40,817		1,160,427
UMB Financial Corp. (c)		27,310		1,665,091
Umpqua Holdings Corp.		133,994		2,130,505
United Bankshares, Inc. (c)		62,777		1,952,993
Valley National Bancorp		201,680		1,790,918
Webster Financial Corp.		56,117		2,766,007
Wintrust Financial Corp.		34,309		2,281,205
				66,544,164
Beverages—0.1%
Boston Beer Co., Inc. (The) - Class A (a)		5,234		1,260,557
Biotechnology—0.9%
Exelixis, Inc. (a)		181,901	$	3,577,993
Ligand Pharmaceuticals, Inc. (a) (c)		12,931		1,754,737
United Therapeutics Corp. (a)		26,518		2,887,810
				8,220,540
Building Products—0.7%
Lennox International, Inc.		22,058		4,827,614
Resideo Technologies, Inc. (a)		74,813		1,537,407
				6,365,021
Capital Markets—2.9%
Eaton Vance Corp.		70,895		2,494,086
Evercore, Inc. - Class A		24,622		1,761,950
FactSet Research Systems, Inc. (c)		23,142		4,631,408
Federated Investors, Inc. - Class B (c)		58,081		1,542,051
Interactive Brokers Group, Inc. - Class A		45,681		2,496,467
Janus Henderson Group plc		101,512		2,103,329
Legg Mason, Inc.		52,035		1,327,413
MarketAxess Holdings, Inc.		22,872		4,833,082
SEI Investments Co.		79,489		3,672,392
Stifel Financial Corp.		43,812		1,814,693
				26,676,871
Chemicals—2.6%
Ashland Global Holdings, Inc.		38,017		2,697,686
Cabot Corp.		36,521		1,568,212
Chemours Co. (The)		104,088		2,937,363
Minerals Technologies, Inc.		21,452		1,101,346
NewMarket Corp. (c)		5,412		2,230,231
Olin Corp.		101,502		2,041,205
PolyOne Corp.		48,562		1,388,873
RPM International, Inc.		80,745		4,746,191
ScottsMiracle-Gro Co. (The) (c)		23,899		1,468,833
Sensient Technologies Corp. (c)		25,720		1,436,462
Valvoline, Inc.		114,478		2,215,149
				23,831,551
Commercial Services & Supplies—1.4%
Brink’s Co. (The) (c)		30,795		1,990,897
Clean Harbors, Inc. (a)		31,006		1,530,146
Deluxe Corp.		28,173		1,082,970
Healthcare Services Group, Inc. (c)		44,898		1,804,002
Herman Miller, Inc.		36,100		1,092,025
HNI Corp.		26,660		944,564
MSA Safety, Inc.		21,296		2,007,574
Pitney Bowes, Inc. (c)		114,148		674,615
Stericycle, Inc. (a)		51,811		1,900,945
				13,027,738
Communications Equipment—1.4%
ARRIS International plc (a)		99,428		3,039,514
Ciena Corp. (a)		86,376		2,929,010
InterDigital, Inc.		20,589		1,367,727
Lumentum Holdings, Inc. (a)		44,806		1,882,300
NetScout Systems, Inc. (a)		42,548		1,005,409

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Communications Equipment—(Continued)
Plantronics, Inc.		20,099	$	665,277
ViaSat, Inc. (a) (c)		34,113		2,010,962
				12,900,199
Construction & Engineering—1.2%
AECOM (a)		95,124		2,520,786
Dycom Industries, Inc. (a) (c)		19,041		1,028,975
EMCOR Group, Inc. (c)		35,019		2,090,284
Granite Construction, Inc. (c)		28,532		1,149,269
KBR, Inc.		85,710		1,301,078
MasTec, Inc. (a) (c)		38,773		1,572,633
Valmont Industries, Inc.		13,438		1,490,946
				11,153,971
Construction Materials—0.2%
Eagle Materials, Inc.		28,527		1,741,003
Consumer Finance—0.4%
Navient Corp.		139,682		1,230,599
SLM Corp. (a) (c)		265,056		2,202,615
				3,433,214
Containers & Packaging—1.4%
AptarGroup, Inc.		38,216		3,594,979
Bemis Co., Inc.		55,374		2,541,667
Greif, Inc. - Class A		15,782		585,670
Owens-Illinois, Inc.		96,552		1,664,556
Silgan Holdings, Inc. (c)		47,110		1,112,738
Sonoco Products Co. (c)		60,723		3,226,213
				12,725,823
Distributors—0.4%
Pool Corp.		24,496		3,641,330
Diversified Consumer Services—1.0%
Adtalem Global Education, Inc. (a)		35,740		1,691,217
Graham Holdings Co. - Class B		2,640		1,691,131
Service Corp. International		110,090		4,432,224
Sotheby’s (a)		21,173		841,415
Weight Watchers International, Inc. (a)		23,584		909,163
				9,565,150
Electric Utilities—1.5%
ALLETE, Inc.		31,287		2,384,695
Hawaiian Electric Industries, Inc.		66,242		2,425,782
IDACORP, Inc.		30,659		2,853,127
OGE Energy Corp.		121,517		4,762,251
PNM Resources, Inc.		48,461		1,991,262
				14,417,117
Electrical Equipment—1.3%
Acuity Brands, Inc.		24,390		2,803,631
EnerSys		25,643		1,990,153
Hubbell, Inc.		33,284		3,306,433
Electrical Equipment—(Continued)
Nvent Electric plc		99,338		2,231,131
Regal-Beloit Corp.		26,247		1,838,602
				12,169,950
Electronic Equipment, Instruments & Components—3.9%
Arrow Electronics, Inc. (a)		53,035		3,656,763
Avnet, Inc.		67,670		2,442,887
Belden, Inc. (c)		24,521		1,024,242
Cognex Corp. (c)		104,761		4,051,108
Coherent, Inc. (a) (c)		14,832		1,567,891
Jabil, Inc.		87,468		2,168,332
Littelfuse, Inc.		15,306		2,624,673
National Instruments Corp.		68,486		3,107,895
SYNNEX Corp.		25,212		2,038,138
Tech Data Corp. (a)		22,704		1,857,414
Trimble, Inc. (a)		152,798		5,028,582
Vishay Intertechnology, Inc. (c)		80,380		1,447,644
Zebra Technologies Corp. - Class A (a)		32,735		5,212,394
				36,227,963
Energy Equipment & Services—1.1%
Apergy Corp. (a)		47,054		1,274,222
Core Laboratories NV (c)		26,899		1,604,794
Diamond Offshore Drilling, Inc. (a) (c)		39,299		370,983
Dril-Quip, Inc. (a)		21,766		653,633
Ensco plc - Class A (c)		265,932		946,718
McDermott International, Inc. (a)		109,867		718,530
Oceaneering International, Inc. (a) (c)		59,947		725,359
Patterson-UTI Energy, Inc.		132,274		1,369,036
Rowan Cos. plc - Class A (a) (c)		77,308		648,614
Transocean, Ltd. (a) (c)		307,815		2,136,236
				10,448,125
Entertainment—0.9%
Cinemark Holdings, Inc.		64,678		2,315,473
Live Nation Entertainment, Inc. (a)		84,141		4,143,944
World Wrestling Entertainment, Inc. - Class A		26,414		1,973,654
				8,433,071
Equity Real Estate Investment Trusts—8.9%
Alexander & Baldwin, Inc. (a)		41,192		757,109
American Campus Communities, Inc.		83,369		3,450,643
Camden Property Trust		56,663		4,989,177
CoreCivic, Inc.		72,205		1,287,415
CoreSite Realty Corp.		22,328		1,947,671
Corporate Office Properties Trust		66,227		1,392,754
Cousins Properties, Inc.		255,762		2,020,520
CyrusOne, Inc.		64,389		3,404,890
Douglas Emmett, Inc.		98,221		3,352,283
EPR Properties		45,227		2,895,885
First Industrial Realty Trust, Inc.		76,845		2,217,747
Geo Group, Inc. (The)		74,100		1,459,770
Healthcare Realty Trust, Inc.		76,194		2,166,957
Highwoods Properties, Inc.		62,962		2,436,000
Hospitality Properties Trust		100,046		2,389,098

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Equity Real Estate Investment Trusts—(Continued)
JBG SMITH Properties		66,209	$	2,304,735
Kilroy Realty Corp.		61,294		3,854,167
Lamar Advertising Co. - Class A		51,766		3,581,172
Liberty Property Trust		89,934		3,766,436
Life Storage, Inc.		28,352		2,636,452
Mack-Cali Realty Corp. (c)		54,950		1,076,471
Medical Properties Trust, Inc.		222,030		3,570,242
National Retail Properties, Inc.		96,821		4,696,787
Omega Healthcare Investors, Inc.		122,104		4,291,956
Pebblebrook Hotel Trust		77,884		2,204,896
PotlatchDeltic Corp.		41,112		1,300,784
Rayonier, Inc.		78,768		2,181,086
Sabra Health Care REIT, Inc. (c)		108,468		1,787,553
Senior Housing Properties Trust		144,635		1,695,122
Tanger Factory Outlet Centers, Inc. (c)		57,133		1,155,229
Taubman Centers, Inc.		37,152		1,690,044
Uniti Group, Inc.		108,892		1,695,448
Urban Edge Properties		69,543		1,155,805
Weingarten Realty Investors		72,607		1,801,380
				82,613,684
Food & Staples Retailing—0.5%
Casey’s General Stores, Inc.		22,271		2,853,806
Sprouts Farmers Market, Inc. (a)		77,634		1,825,175
				4,678,981
Food Products—1.7%
Flowers Foods, Inc.		111,628		2,061,769
Hain Celestial Group, Inc. (The) (a) (c)		54,448		863,545
Ingredion, Inc.		43,016		3,931,663
Lancaster Colony Corp.		11,875		2,100,213
Post Holdings, Inc. (a) (c)		40,569		3,615,915
Sanderson Farms, Inc. (c)		12,227		1,214,019
Tootsie Roll Industries, Inc. (c)		11,278		376,685
TreeHouse Foods, Inc. (a) (c)		34,068		1,727,588
				15,891,397
Gas Utilities—2.4%
Atmos Energy Corp.		71,097		6,592,114
National Fuel Gas Co.		52,300		2,676,714
New Jersey Resources Corp.		53,846		2,459,147
ONE Gas, Inc.		31,957		2,543,777
Southwest Gas Holdings, Inc.		32,245		2,466,742
UGI Corp.		105,768		5,642,723
				22,381,217
Health Care Equipment & Supplies—4.5%
Avanos Medical, Inc. (a)		28,855		1,292,416
Cantel Medical Corp.		22,083		1,644,079
Globus Medical, Inc. - Class A (a)		46,250		2,001,700
Haemonetics Corp. (a)		31,445		3,146,072
Hill-Rom Holdings, Inc. (c)		40,935		3,624,794
ICU Medical, Inc. (a)		10,097		2,318,574
Inogen, Inc. (a)		10,738		1,333,338
Integra LifeSciences Holdings Corp. (a)		43,013		1,939,886
Health Care Equipment & Supplies—(Continued)
LivaNova plc (a)		29,620		2,709,341
Masimo Corp. (a)		29,663		3,184,916
NuVasive, Inc. (a)		31,285		1,550,485
STERIS plc		51,410		5,493,159
Teleflex, Inc.		27,976		7,231,237
West Pharmaceutical Services, Inc.		45,070		4,418,212
				41,888,209
Health Care Providers & Services—1.9%
Acadia Healthcare Co., Inc. (a) (c)		53,695		1,380,498
Chemed Corp.		9,742		2,759,714
Encompass Health Corp.		60,188		3,713,600
HealthEquity, Inc. (a)		33,023		1,969,822
MEDNAX, Inc. (a)		54,403		1,795,299
Molina Healthcare, Inc. (a)		37,958		4,411,479
Patterson Cos., Inc.		50,259		988,092
Tenet Healthcare Corp. (a)		50,511		865,758
				17,884,262
Health Care Technology—0.4%
Allscripts Healthcare Solutions, Inc. (a) (c)		106,296		1,024,693
Medidata Solutions, Inc. (a) (c)		37,228		2,509,912
				3,534,605
Hotels, Restaurants & Leisure—3.8%
Boyd Gaming Corp.		49,151		1,021,358
Brinker International, Inc. (c)		23,484		1,032,826
Cheesecake Factory, Inc. (The) (c)		25,375		1,104,066
Churchill Downs, Inc.		7,267		1,772,712
Cracker Barrel Old Country Store, Inc. (c)		14,623		2,337,633
Domino’s Pizza, Inc.		25,307		6,275,883
Dunkin’ Brands Group, Inc.		50,252		3,222,158
Eldorado Resorts, Inc. (a)		39,551		1,432,142
International Speedway Corp. - Class A		14,871		652,242
Jack in the Box, Inc.		15,662		1,215,841
Marriott Vacations Worldwide Corp.		24,897		1,755,488
Papa John’s International, Inc. (c)		13,625		542,411
Penn National Gaming, Inc. (a)		65,804		1,239,089
Scientific Games Corp. - Class A (a) (c)		33,476		598,551
Six Flags Entertainment Corp.		43,656		2,428,583
Texas Roadhouse, Inc.		40,484		2,416,895
Wendy’s Co. (The) (c)		113,799		1,776,402
Wyndham Hotels & Resorts, Inc.		60,343		2,737,762
Wyndham Worldwide Corp.		59,290		2,124,954
				35,686,996
Household Durables—1.5%
Helen of Troy, Ltd. (a)		16,063		2,107,144
KB Home		52,440		1,001,604
NVR, Inc. (a)		2,068		5,039,695
Tempur Sealy International, Inc. (a) (c)		27,852		1,153,073
Toll Brothers, Inc.		82,483		2,716,165
TRI Pointe Group, Inc. (a)		86,515		945,609
Tupperware Brands Corp.		29,556		933,083
				13,896,373

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Household Products—0.2%
Energizer Holdings, Inc. (c)		36,266	$	1,637,410
Industrial Conglomerates—0.4%
Carlisle Cos., Inc. (c)		36,227		3,641,538
Insurance—5.0%
Alleghany Corp.		9,027		5,626,710
American Financial Group, Inc.		42,898		3,883,556
Aspen Insurance Holdings, Ltd.		36,320		1,525,077
Brown & Brown, Inc.		142,698		3,932,757
CNO Financial Group, Inc.		100,172		1,490,559
First American Financial Corp.		68,011		3,036,011
Genworth Financial, Inc. - Class A (a)		304,661		1,419,720
Hanover Insurance Group, Inc. (The)		25,755		3,007,411
Kemper Corp.		37,028		2,457,919
Mercury General Corp.		16,497		853,060
Old Republic International Corp.		173,080		3,560,256
Primerica, Inc.		26,124		2,552,576
Reinsurance Group of America, Inc.		38,193		5,355,804
RenaissanceRe Holdings, Ltd.		24,498		3,275,383
W.R. Berkley Corp.		58,697		4,338,295
				46,315,094
Interactive Media & Services—0.3%
Cars.com, Inc. (a) (c)		38,379		825,148
Yelp, Inc. (a) (c)		46,504		1,627,175
				2,452,323
IT Services—2.8%
CACI International, Inc. - Class A (a)		15,118		2,177,446
CoreLogic, Inc. (a)		49,013		1,638,014
Leidos Holdings, Inc.		91,114		4,803,530
LiveRamp Holdings, Inc. (a) (c)		41,380		1,598,509
MAXIMUS, Inc.		39,018		2,539,682
Perspecta, Inc.		86,053		1,481,833
Sabre Corp.		167,500		3,624,700
Science Applications International Corp.		25,884		1,648,811
Teradata Corp. (a)		71,913		2,758,583
WEX, Inc. (a)		26,224		3,672,933
				25,944,041
Leisure Products—0.6%
Brunswick Corp.		52,772		2,451,259
Polaris Industries, Inc.		35,332		2,709,258
				5,160,517
Life Sciences Tools & Services—1.5%
Bio-Rad Laboratories, Inc. - Class A (a)		12,251		2,844,927
Bio-Techne Corp.		22,977		3,325,231
Charles River Laboratories International, Inc. (a)		29,262		3,311,873
PRA Health Sciences, Inc. (a)		35,578		3,271,753
Syneos Health, Inc. (a)		37,053		1,458,036
				14,211,820
Machinery—5.0%
AGCO Corp.		40,007		2,227,190
Crane Co.		30,743		2,219,030
Donaldson Co., Inc.		77,809		3,376,132
Graco, Inc. (c)		101,260		4,237,731
IDEX Corp.		46,671		5,892,680
ITT, Inc.		53,295		2,572,550
Kennametal, Inc.		49,951		1,662,369
Lincoln Electric Holdings, Inc.		39,209		3,091,630
Nordson Corp.		31,840		3,800,104
Oshkosh Corp.		43,740		2,681,699
Terex Corp.		39,458		1,087,857
Timken Co. (The)		42,086		1,570,650
Toro Co. (The)		64,000		3,576,320
Trinity Industries, Inc.		89,008		1,832,675
Wabtec Corp.		52,315		3,675,129
Woodward, Inc.		33,829		2,513,156
				46,016,902
Marine—0.2%
Kirby Corp. (a)		32,780		2,208,061
Media—1.1%
AMC Networks, Inc. - Class A (a) (c)		27,405		1,503,986
Cable One, Inc.		3,020		2,476,702
John Wiley & Sons, Inc. - Class A		27,520		1,292,614
Meredith Corp. (c)		24,262		1,260,168
New York Times Co. (The) - Class A (c)		85,885		1,914,377
TEGNA, Inc.		130,989		1,423,851
				9,871,698
Metals & Mining—2.0%
Allegheny Technologies, Inc. (a) (c)		76,466		1,664,665
Carpenter Technology Corp.		28,819		1,026,245
Commercial Metals Co.		71,566		1,146,487
Compass Minerals International, Inc. (c)		20,595		858,605
Reliance Steel & Aluminum Co.		42,851		3,049,706
Royal Gold, Inc.		39,856		3,413,666
Steel Dynamics, Inc.		139,659		4,195,356
United States Steel Corp. (c)		107,850		1,967,184
Worthington Industries, Inc.		24,477		852,779
				18,174,693
Multi-Utilities—1.1%
Black Hills Corp. (c)		32,840		2,061,695
MDU Resources Group, Inc.		119,257		2,843,087
NorthWestern Corp.		30,615		1,819,756
Vectren Corp.		50,546		3,638,301
				10,362,839
Multiline Retail—0.4%
Big Lots, Inc.		24,543		709,783
Dillard’s, Inc. - Class A (c)		11,242		678,005
Ollie’s Bargain Outlet Holdings, Inc. (a)		31,370		2,086,419
				3,474,207

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Oil, Gas & Consumable Fuels—2.5%
Callon Petroleum Co. (a) (c)		138,460	$	898,605
Chesapeake Energy Corp. (a) (c)		555,902		1,167,394
CNX Resources Corp. (a) (c)		123,870		1,414,595
EQT Corp.		154,793		2,924,040
Equitrans Midstream Corp. (a)		123,758		2,477,635
Matador Resources Co. (a) (c)		62,992		978,266
Murphy Oil Corp.		98,970		2,314,908
Oasis Petroleum, Inc. (a) (c)		162,737		899,936
PBF Energy, Inc. - Class A		72,941		2,382,983
QEP Resources, Inc. (a)		144,051		811,007
Range Resources Corp. (c)		125,993		1,205,753
SM Energy Co.		62,769		971,664
Southwestern Energy Co. (a)		353,650		1,205,947
World Fuel Services Corp.		40,903		875,733
WPX Energy, Inc. (a) (c)		240,363		2,728,120
				23,256,586
Paper & Forest Products—0.3%
Domtar Corp.		38,269		1,344,390
Louisiana-Pacific Corp.		85,892		1,908,520
				3,252,910
Personal Products—0.3%
Edgewell Personal Care Co. (a) (c)		32,878		1,227,993
Nu Skin Enterprises, Inc. - Class A		33,796		2,072,709
				3,300,702
Pharmaceuticals—0.5%
Catalent, Inc. (a)		88,444		2,757,684
Mallinckrodt plc (a)		50,687		800,854
Prestige Consumer Healthcare, Inc. (a) (c)		31,477		972,010
				4,530,548
Professional Services—1.0%
ASGN, Inc. (a)		31,927		1,740,022
Dun & Bradstreet Corp. (The)		22,591		3,224,639
Insperity, Inc.		23,148		2,161,097
ManpowerGroup, Inc.		37,618		2,437,646
				9,563,404
Real Estate Management & Development—0.5%
Jones Lang LaSalle, Inc.		27,723		3,509,732
Realogy Holdings Corp. (c)		71,885		1,055,272
				4,565,004
Road & Rail—1.6%
Avis Budget Group, Inc. (a)		39,528		888,589
Genesee & Wyoming, Inc. - Class A (a)		35,525		2,629,561
Knight-Swift Transportation Holdings, Inc. (c)		76,457		1,916,777
Landstar System, Inc.		25,014		2,393,089
Old Dominion Freight Line, Inc.		39,790		4,913,667
Ryder System, Inc.		32,298		1,555,149
Road & Rail—(Continued)
Werner Enterprises, Inc. (c)		26,854		793,267
				15,090,099
Semiconductors & Semiconductor Equipment—3.0%
Cirrus Logic, Inc. (a)		36,409		1,208,051
Cree, Inc. (a) (c)		62,397		2,669,032
Cypress Semiconductor Corp. (c)		220,210		2,801,071
First Solar, Inc. (a) (c)		45,914		1,949,279
Integrated Device Technology, Inc. (a)		78,505		3,801,997
MKS Instruments, Inc.		32,845		2,122,115
Monolithic Power Systems, Inc.		23,739		2,759,659
Silicon Laboratories, Inc. (a)		26,251		2,068,841
Synaptics, Inc. (a) (c)		21,062		783,717
Teradyne, Inc.		109,055		3,422,146
Universal Display Corp. (c)		25,791		2,413,264
Versum Materials, Inc.		66,336		1,838,834
				27,838,006
Software—3.5%
ACI Worldwide, Inc. (a)		70,562		1,952,451
Blackbaud, Inc.		29,549		1,858,632
CDK Global, Inc.		78,345		3,751,159
CommVault Systems, Inc. (a)		23,655		1,397,774
Fair Isaac Corp. (a)		17,616		3,294,192
j2 Global, Inc. (c)		28,487		1,976,428
LogMeIn, Inc.		31,127		2,539,029
Manhattan Associates, Inc. (a)		39,776		1,685,309
PTC, Inc. (a)		64,982		5,387,008
Tyler Technologies, Inc. (a) (c)		23,620		4,389,068
Ultimate Software Group, Inc. (The) (a)		19,024		4,658,407
				32,889,457
Specialty Retail—2.1%
Aaron’s, Inc.		41,733		1,754,873
American Eagle Outfitters, Inc.		102,514		1,981,595
AutoNation, Inc. (a) (c)		35,014		1,250,000
Bed Bath & Beyond, Inc. (c)		83,990		950,767
Dick’s Sporting Goods, Inc. (c)		44,876		1,400,131
Five Below, Inc. (a)		33,924		3,471,104
Michaels Cos., Inc. (The) (a) (c)		54,686		740,448
Murphy USA, Inc. (a)		18,242		1,398,067
Sally Beauty Holdings, Inc. (a) (c)		73,096		1,246,287
Signet Jewelers, Ltd. (c)		31,583		1,003,392
Urban Outfitters, Inc. (a)		45,842		1,521,954
Williams-Sonoma, Inc. (c)		48,766		2,460,245
				19,178,863
Technology Hardware, Storage & Peripherals—0.2%
NCR Corp. (a) (c)		71,913		1,659,752
Textiles, Apparel & Luxury Goods—0.7%
Carter’s, Inc.		27,894		2,276,709
Deckers Outdoor Corp. (a)		17,718		2,267,018

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares/ Principal Amount*		Value
Textiles, Apparel & Luxury Goods—(Continued)
Skechers USA, Inc. - Class A (a) (c)		81,452	$	1,864,436
				6,408,163
Thrifts & Mortgage Finance—0.5%
LendingTree, Inc. (a) (c)		4,527		993,993
New York Community Bancorp, Inc. (c)		298,323		2,807,220
Washington Federal, Inc.		49,582		1,324,335
				5,125,548
Trading Companies & Distributors—0.8%
GATX Corp. (c)		22,876		1,619,850
MSC Industrial Direct Co., Inc. - Class A		27,625		2,124,915
NOW, Inc. (a) (c)		65,963		767,809
Watsco, Inc.		19,541		2,718,935
				7,231,509
Water Utilities—0.4%
Aqua America, Inc.		108,258		3,701,341
Wireless Telecommunication Services—0.2%
Telephone & Data Systems, Inc.		56,554		1,840,267
Total Common Stocks (Cost $782,110,895)				900,986,187
Mutual Fund—1.9%
Investment Company Security—1.9%
SPDR S&P MidCap 400 ETF Trust (c) (Cost $17,614,170)		56,600		17,131,122
Short-Term Investments—1.4%
Discount Notes—0.4%
Federal Home Loan Bank
2.056%, 01/09/19 (d)		600,000		599,722
2.190%, 01/18/11 (d)		100,000		99,894
2.273%, 01/23/19 (d)		450,000		449,376
2.351%, 02/06/19 (d)		2,600,000		2,593,934
				3,742,926
U.S. Treasury—1.0%
U.S. Treasury Bills
1.995%, 01/08/19 (d)		1,700,000		1,699,354
2.140%, 01/17/19 (d)		550,000		549,469
2.221%, 01/22/19 (d)		5,750,000		5,742,541
2.305%, 01/29/19 (d)		300,000		299,448
2.339%, 02/21/19 (d)		1,275,000		1,270,744
				9,561,556
Total Short-Term Investments (Cost $13,304,000)				13,304,482
Securities Lending Reinvestments (e)—14.5%
Security Description	Principal Amount*		Value
Certificates of Deposit—9.6%
Banco Del Estado De Chile New York 2.820%, 1M LIBOR + 0.350%, 05/20/19 (f)		3,000,000		2,999,937
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (f)		5,000,000		4,999,875
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (f)		4,000,000		3,999,997
3.072%, 3M LIBOR + 0.280%, 03/20/19 (f)		2,000,000		2,000,798
Barclays Bank plc 2.500%, 02/01/19		2,000,000		1,999,742
2.547%, 1M LIBOR + 0.200%, 02/04/19 (f)		2,500,000		2,499,762
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (f)		2,000,000		1,999,744
2.740%, 1M LIBOR + 0.270%, 07/19/19 (f)		3,000,000		2,998,782
China Construction Bank Corp. 2.550%, 01/07/19		2,500,000		2,500,000
Commonwealth Bank of Australia
2.617%, 3M LIBOR + 0.140%, 04/23/19 (f)		1,250,000		1,250,004
2.642%, 1M LIBOR + 0.210%, 09/13/19 (f)		5,000,000		5,000,000
Credit Agricole S.A. 2.500%, 02/12/19		3,000,000		2,999,490
2.799%, 1M LIBOR + 0.320%, 05/21/19 (f)		3,000,000		3,000,189
Credit Industriel et Commercial Zero Coupon, 01/25/19		987,228		998,300
Credit Suisse AG 2.620%, 04/01/19		5,000,000		4,997,410
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		2,500,000		2,499,815
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		5,954,925		5,993,880
Natixis New York 2.731%, 3M LIBOR + 0.190%, 02/01/19 (f)		2,000,000		1,999,552
2.810%, 1M LIBOR + 0.370%, 02/14/19 (f)		3,000,000		3,000,561
Royal Bank of Canada New York
2.665%, 1M LIBOR + 0.210%, 09/17/19 (f)		2,000,000		1,997,954
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (f)		3,000,000		2,999,754
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (f)		2,000,000		1,999,112
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (f)		4,000,000		3,999,884
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (f)		3,500,000		3,499,930
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (f)		3,000,000		2,998,899
Svenska Handelsbanken AB 2.767%, 1M LIBOR + 0.380%, 12/10/19 (f)		3,000,000		2,999,901
2.822%, 1M LIBOR + 0.300%, 10/31/19 (f)		2,000,000		1,999,532
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (f)		2,000,000		1,998,096
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (f)		3,000,000		3,000,000
Wells Fargo Bank N.A. 2.730%, 3M LIBOR + 0.210%, 10/25/19 (f)		2,000,000		2,000,000

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (e)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (f)		1,500,000	$	1,499,991
				88,730,891
Commercial Paper—1.9%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (f)		5,000,000		4,998,615
Banco Santander S.A. 2.740%, 02/07/19		2,482,494		2,492,720
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (f)		4,000,000		4,000,372
2.725%, 3M LIBOR + 0.110%, 05/10/19 (f)		1,000,000		999,882
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (f)		4,000,000		4,000,980
Westpac Banking Corp. 2.659%, 3M LIBOR + 0.070%, 08/07/19 (f)		1,500,000		1,499,014
				17,991,583
Repurchase Agreements—3.0%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $10,076,667; collateralized by various Common Stock with an aggregate market value of $11,001,834.		10,000,000		10,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $2,005,425; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $2,176,637.		2,000,000		2,000,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $700,097; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $714,000.		700,000		700,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $400,055; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $408,000.		400,000		400,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $300,046; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $306,000.		300,000		300,000
Repurchase Agreements—(Continued)
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $1,518,331; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $1,548,422.		1,518,061		1,518,061
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $4,030,053; collateralized by various Common Stock with an aggregate market value of $4,400,000.		4,000,000		4,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,007,513; collateralized by various Common Stock with an aggregate market value of $1,100,000.		1,000,000		1,000,000
NBC Global Finance Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,000,142; collateralized by various Common Stock with an aggregate market value of $1,113,212.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,000,427; collateralized by various Common Stock with an aggregate market value of $3,339,637.		3,000,000		3,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $2,000,284; collateralized by various Common Stock with an aggregate market value of $2,226,425.		2,000,000		2,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $700,098; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $766,833.		700,000		700,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $800,112; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $876,381.		800,000		800,000
				27,418,061
Total Securities Lending Reinvestments (Cost $134,154,230)				134,140,535
Total Investments—114.9% (Cost $947,183,295)				1,065,562,326
Other assets and liabilities (net)—(14.9)%				(137,927,031	)
Net Assets—100.0%			$	927,635,295

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2018, the market value of securities pledged was $2,795,600.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Schedule of Investments as of December 31, 2018

(c)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $137,078,200 and the collateral received consisted of cash in the amount of $134,092,708 andnon-cash collateral with a value of $5,380,131. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(d)	The rate shown represents current yield to maturity.
(e)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(f)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts		Notional Amount			Value/ Unrealized Depreciation
S&P Midcap 400 IndexE-Mini Futures		03/15/19		46		USD	7,646,120	$	(339,547	)

Glossary of Abbreviations

Currencies

(USD)— United States Dollar

Other Abbreviations

(FEDEFF PRV)—	Effective Federal Funds Rate
(ETF)—	Exchange-Traded Fund
(LIBOR)—	London Interbank Offered Rate
(REIT)—	Real Estate Investment Trust
(SOFR)—	Secured Overnight Financing Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1			Level 2			Level 3		Total
Total Common Stocks*	$	900,986,187		$	—		$	—	$	900,986,187
Total Mutual Fund*		17,131,122			—			—		17,131,122
Total Short-Term Investments*		—			13,304,482			—		13,304,482
Total Securities Lending Reinvestments*		—			134,140,535			—		134,140,535
Total Investments	$	918,117,309		$	147,445,017		$	—	$	1,065,562,326
Collateral for Securities Loaned (Liability)	$	—		$	(134,092,708	)	$	—	$	(134,092,708	)
Futures Contracts
Futures Contracts (Unrealized Depreciation)	$	(339,547	)	$	—		$	—	$	(339,547	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,065,562,326
Receivable for:
Investments sold		479,610
Fund shares sold		2,089,665
Dividends		1,020,435
Variation margin on futures contracts		74,980
Prepaid expenses		3,031
Total Assets		1,069,230,047
Liabilities
Due to custodian		64,108
Collateral for securities loaned		134,092,708
Payables for:
Investments purchased		5,760,224
Fund shares redeemed		1,049,279
Accrued Expenses:
Management fees		201,067
Distribution and service fees		108,827
Deferred trustees’ fees		111,916
Other expenses		206,623
Total Liabilities		141,594,752
Net Assets	$	927,635,295
Net Assets Consist of:
Paid in surplus	$	698,708,236
Distributable earnings (Accumulated losses)		228,927,059
Net Assets	$	927,635,295
Net Assets
Class A	$	442,169,311
Class B		330,817,623
Class E		30,646,223
Class G		124,002,138
Capital Shares Outstanding*
Class A		27,090,557
Class B		20,610,337
Class E		1,894,721
Class G		7,784,665
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	16.32
Class B		16.05
Class E		16.17
Class G		15.93

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $947,183,295.
(b)	Includes securities loaned at value of $137,078,200.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	17,222,412
Interest		274,524
Securities lending income		669,706
Total investment income		18,166,642
Expenses
Management fees		2,775,496
Administration fees		43,143
Custodian and accounting fees		93,685
Distribution and service fees—Class B		1,005,222
Distribution and service fees—Class E		56,552
Distribution and service fees—Class G		435,006
Audit and tax services		44,663
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		176,982
Insurance		7,192
Miscellaneous		121,664
Total expenses		4,838,656
Less management fee waiver		(36,237	)
Net expenses		4,802,419
Net Investment Income		13,364,223
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		101,293,561
Futures contracts		(179,592	)
Net realized gain		101,113,969
Net change in unrealized depreciation on:
Investments		(228,859,339	)
Futures contracts		(521,360	)
Net change in unrealized depreciation		(229,380,699	)
Net realized and unrealized loss		(128,266,730	)
Net Decrease in Net Assets From Operations	$	(114,902,507	)

(a) Net of foreign withholding taxes of $9,089.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	13,364,223		$	12,504,559
Net realized gain		101,113,969			91,129,049
Net change in unrealized appreciation (depreciation)		(229,380,699	)		61,164,045
Increase (decrease) in net assets from operations		(114,902,507	)		164,797,653
From Distributions to Shareholders (a)
Class A		(49,701,046	)		(39,181,289	)
Class B		(37,914,266	)		(31,449,360	)
Class E		(3,540,444	)		(2,945,440	)
Class G		(13,653,593	)		(10,777,522	)
Total distributions		(104,809,349	)		(84,353,611	)
Increase (decrease) in net assets from capital share transactions		(14,733,599	)		5,767,226
Total increase (decrease) in net assets		(234,445,455	)		86,211,268
Net Assets
Beginning of period		1,162,080,750			1,075,869,482
End of period	$	927,635,295		$	1,162,080,750	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,527,734		$	29,079,587			3,333,449		$	62,740,951
Reinvestments		2,563,231			49,701,046			2,113,338			39,181,289
Redemptions		(3,938,405	)		(77,535,807	)		(4,666,967	)		(88,550,204	)
Net increase		152,560		$	1,244,826			779,820		$	13,372,036
Class B
Sales		640,410		$	11,405,224			760,758		$	14,432,396
Reinvestments		1,986,080			37,914,266			1,720,424			31,449,360
Redemptions		(3,437,673	)		(66,807,275	)		(3,035,028	)		(57,912,482	)
Net decrease		(811,183	)	$	(17,487,785	)		(553,846	)	$	(12,030,726	)
Class E
Sales		67,928		$	1,289,311			67,080		$	1,286,199
Reinvestments		184,110			3,540,444			160,078			2,945,440
Redemptions		(352,470	)		(6,861,678	)		(325,322	)		(6,259,722	)
Net decrease		(100,432	)	$	(2,031,923	)		(98,164	)	$	(2,028,083	)
Class G
Sales		1,038,856		$	19,550,263			1,097,750		$	20,684,599
Reinvestments		720,506			13,653,593			593,149			10,777,522
Redemptions		(1,539,013	)		(29,662,573	)		(1,319,461	)		(25,008,122	)
Net increase		220,349		$	3,541,283			371,438		$	6,453,999
Increase (decrease) derived from capital shares transactions				$	(14,733,599	)				$	5,767,226

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(7,049,030	)	$	(32,132,259	)
Class B		(4,872,736	)		(26,576,624	)
Class E		(484,668	)		(2,460,772	)
Class G		(1,663,693	)		(9,113,829	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $11,982,487 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	20.24		$	18.89		$	17.23		$	19.01		$	18.45
Income (Loss) from Investment Operations
Net investment income (a)		0.26			0.24			0.27			0.24			0.24
Net realized and unrealized gain (loss)		(2.24	)		2.63			3.04			(0.57	)		1.41
Total income (loss) from investment operations		(1.98	)		2.87			3.31			(0.33	)		1.65
Less Distributions
Distributions from net investment income		(0.26	)		(0.27	)		(0.24	)		(0.23	)		(0.20	)
Distributions from net realized capital gains		(1.68	)		(1.25	)		(1.41	)		(1.22	)		(0.89	)
Total distributions		(1.94	)		(1.52	)		(1.65	)		(1.45	)		(1.09	)
Net Asset Value, End of Period	$	16.32		$	20.24		$	18.89		$	17.23		$	19.01
Total Return (%) (b)		(11.30	)		15.95			20.43			(2.35	)		9.49
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.30			0.30			0.30			0.30			0.30
Net ratio of expenses to average net assets (%) (c)		0.30			0.29			0.29			0.29			0.30
Ratio of net investment income to average net assets (%)		1.34			1.26			1.53			1.30			1.33
Portfolio turnover rate (%)		25			23			28			25			17
Net assets, end of period (in millions)	$	442.2		$	545.3		$	494.1		$	411.5		$	399.6
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	19.93		$	18.63		$	17.01		$	18.79		$	18.25
Income (Loss) from Investment Operations
Net investment income (a)		0.21			0.19			0.22			0.19			0.19
Net realized and unrealized gain (loss)		(2.20	)		2.59			3.00			(0.57	)		1.39
Total income (loss) from investment operations		(1.99	)		2.78			3.22			(0.38	)		1.58
Less Distributions
Distributions from net investment income		(0.21	)		(0.23	)		(0.19	)		(0.18	)		(0.15	)
Distributions from net realized capital gains		(1.68	)		(1.25	)		(1.41	)		(1.22	)		(0.89	)
Total distributions		(1.89	)		(1.48	)		(1.60	)		(1.40	)		(1.04	)
Net Asset Value, End of Period	$	16.05		$	19.93		$	18.63		$	17.01		$	18.79
Total Return (%) (b)		(11.51	)		15.63			20.14			(2.62	)		9.23
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.55			0.55			0.55			0.55			0.55
Net ratio of expenses to average net assets (%) (c)		0.55			0.54			0.54			0.54			0.55
Ratio of net investment income to average net assets (%)		1.09			1.01			1.28			1.04			1.08
Portfolio turnover rate (%)		25			23			28			25			17
Net assets, end of period (in millions)	$	330.8		$	427.0		$	409.3		$	374.7		$	404.0

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	20.07		$	18.75		$	17.10		$	18.89		$	18.33
Income (Loss) from Investment Operations
Net investment income (a)		0.23			0.21			0.24			0.21			0.21
Net realized and unrealized gain (loss)		(2.22	)		2.61			3.03			(0.59	)		1.41
Total income (loss) from investment operations		(1.99	)		2.82			3.27			(0.38	)		1.62
Less Distributions
Distributions from net investment income		(0.23	)		(0.25	)		(0.21	)		(0.19	)		(0.17	)
Distributions from net realized capital gains		(1.68	)		(1.25	)		(1.41	)		(1.22	)		(0.89	)
Total distributions		(1.91	)		(1.50	)		(1.62	)		(1.41	)		(1.06	)
Net Asset Value, End of Period	$	16.17		$	20.07		$	18.75		$	17.10		$	18.89
Total Return (%) (b)		(11.44	)		15.80			20.26			(2.58	)		9.39
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.45			0.45			0.45			0.45			0.45
Net ratio of expenses to average net assets (%) (c)		0.45			0.44			0.44			0.44			0.45
Ratio of net investment income to average net assets (%)		1.19			1.11			1.38			1.13			1.17
Portfolio turnover rate (%)		25			23			28			25			17
Net assets, end of period (in millions)	$	30.6		$	40.0		$	39.2		$	36.7		$	42.4
	Class G
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	19.80		$	18.52		$	16.92		$	18.70		$	18.16
Income (Loss) from Investment Operations
Net investment income (a)		0.20			0.18			0.21			0.18			0.18
Net realized and unrealized gain (loss)		(2.19	)		2.58			2.98			(0.57	)		1.39
Total income (loss) from investment operations		(1.99	)		2.76			3.19			(0.39	)		1.57
Less Distributions
Distributions from net investment income		(0.20	)		(0.23	)		(0.18	)		(0.17	)		(0.14	)
Distributions from net realized capital gains		(1.68	)		(1.25	)		(1.41	)		(1.22	)		(0.89	)
Total distributions		(1.88	)		(1.48	)		(1.59	)		(1.39	)		(1.03	)
Net Asset Value, End of Period	$	15.93		$	19.80		$	18.52		$	16.92		$	18.70
Total Return (%) (b)		(11.56	)		15.60			20.08			(2.68	)		9.21
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.60			0.60			0.60			0.60			0.60
Net ratio of expenses to average net assets (%) (c)		0.60			0.59			0.59			0.59			0.60
Ratio of net investment income to average net assets (%)		1.04			0.96			1.24			1.00			1.02
Portfolio turnover rate (%)		25			23			28			25			17
Net assets, end of period (in millions)	$	124.0		$	149.8		$	133.2		$	104.0		$	105.2

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Mid Cap Stock Index Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost

BHFTII-16

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Due to Custodian -Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans (currently, the federal funds rate plus 2%). This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio’s assets to the extent of any overdraft. At December 31, 2018, the Portfolio had a payment of $64,108 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2018. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2018. The Portfolio’s average overdraft advances during the year ended December 31, 2018 were not significant.

BHFTII-17

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $27,418,061. The value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

BHFTII-18

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(128,372,300	)	$	—	$	—	$	—	$	(128,372,300	)
Mutual Funds		(5,720,408	)		—		—		—		(5,720,408	)
Total	$	(134,092,708	)	$	—	$	—	$	—	$	(134,092,708	)
Total Borrowings	$	(134,092,708	)	$	—	$	—	$	—	$	(134,092,708	)
Gross amount of recognized liabilities for securities lending transactions										$	(134,092,708	)

3. Investments in Derivative Instruments

Futures Contracts -The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value
Equity	Unrealized depreciation on futures contracts (a)	$	339,547

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Equity
Futures contracts	$	(179,592	)
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Equity
Futures contracts	$	(521,360	)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Futures contracts long	$	8,033

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

BHFTII-19

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	271,470,832	$	0	$	359,424,046

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2018 were $2,775,496.

BHFTII-20

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Advisors, LLC (“MIA”) with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIA an investment subadvisory fee for each class of the Portfolio as follows:

% per annum		Average Daily Net Assets
0.030%	��	On the first $500 million
0.020%		On the next $500 million
0.010%		On amounts over $1 billion

Fees earned by MIA with respect to the Portfolio for the year ended December 31, 2018 were $260,585.

Management Fee Waivers - Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum reduction	Average Daily Net Assets
0.005%	Over $500 million and under $1 billion
0.010%	Of the next $1 billion
0.015%	On amounts over $2 billion

An identical expense agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class E and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.15% of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-21

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	950,243,198
Gross unrealized appreciation		225,917,431
Gross unrealized depreciation		(110,598,303	)
Net unrealized appreciation (depreciation)	$	115,319,128

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$17,717,458	$	15,139,291	$	87,091,891	$	69,214,320	$	104,809,349	$	84,353,611

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$17,093,429	$	96,626,418	$	115,319,128	$	—	$	229,038,975

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-22

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MetLife Mid Cap Stock Index Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Mid Cap Stock Index Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Mid Cap Stock Index Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-23

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-24

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-25

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-26

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-27

Brighthouse Funds Trust II

MetLife Mid Cap Stock Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MetLife Mid Cap Stock Index Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the S&P 400 Index, for theone-, three-, and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median and theSub-advised Expense Universe median, but below the Expense Universe median. The Board considered that the Portfolio’s total expenses (exclusive of12b-1 fees) were below the Expense Group median, Expense Universe median, andSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-28

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Managed by MetLife Investment Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, E, and G shares of the MetLife MSCI EAFE Index Portfolio returned-13.91%,-14.08%,-14.06%, and-14.12%, respectively. The Portfolio’s benchmark, the MSCI EAFE Index¹, returned-13.79%.

MARKET ENVIRONMENT / CONDITIONS

Equity markets ended the period down with outperformance in the middle of the year bracketed by underperformance during the first and fourth quarters. The main concerns during the year were slowing global growth, political unrest in Europe, a more hawkish Federal Reserve (the “Fed”), and continued fears about a global trade war. Equity markets were impacted as the10-year Treasury yield reached its highest level since 2014, which was driven by a more hawkish Fed and higher than expected wage growth. Equity markets also feared the impact of President Trump’s plan to impose tariffs on steel and aluminum imports and Fed Chair Powell’s Congressional testimony during the first quarter where he hinted at the possibility of four rate hikes during the year. Other issues equity investors were concerned about included unrest in the Middle East, political uncertainty in Italy and the U.S. withdrawal from the Iran nuclear deal. In the middle of the year, equity markets rallied as trade negotiations eased concerns of a global trade war and leaders of North and South Korea met for the first time since 2007. Equity markets also reacted favorably after the Fed Chair Powell made dovish comments in the third quarter during the Jackson Hole symposium and progress was made with trade negotiations with the European Union and the North American Free Trade Agreement. Equity markets underperformed again towards the end of the year on concerns about a weakening global economy, the partial U.S. government shut-down, and continued uncertainty surrounding Brexit.

The U.S. dollar strengthened during the year, which negatively impacted the U.S. investors’ MSCI EAFE Index return versus the local currency return by approximately 2.8%.

Alltwenty-one countries comprising the MSCI EAFE Index experienced negative returns for the year. Japan (24.0% beginning weight in the benchmark), the largest country in the benchmark, down 12.6%, had the largest negative contribution to Portfolio return. Austria (0.3% beginning weight), down 27.1%; Belgium (1.1% beginning weight), down 26.1%; and Ireland (0.5% beginning weight), down 25.0%, were the worst-performing countries.

The stocks in the MSCI EAFE Index with the largest positive impact on the portfolio return for the year were Sky (United Kingdom—acquired on November 11, 2018), up 69.2%; AstraZeneca (United Kingdom—held throughout the entire year), up 12.3%; and GlaxoSmithKline (United Kingdom—held throughout the entire year), up 12.1%. The stocks with the largest negative impact were British American Tobacco (United Kingdom), down 50.3%; Bayer (Germany), down 42.1%; and BASF (Germany), down 35.1% (all three were held throughout the entire year).

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio is managed utilizing a stratified sampling strategy versus the MSCI EAFE Index. This strategy seeks to replicate the performance of the Index by owning a subset of Index constituents and neutralizing exposures across countries. The Portfolio is periodically rebalanced for compositional changes in the MSCI EAFE Index. Factors that impact tracking error include sampling, fair value pricing, transaction costs, cash drag, securities lending, Net Asset Value rounding, contributions and withdrawals.

Stacey Lituchy

Norman Hu

Mirsad Usejnoski

Portfolio Managers

MetLife Investment Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

A $10,000 INVESTMENT COMPARED TO THE MSCI EAFE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
MetLife MSCI EAFE Index Portfolio
Class A		-13.91		0.26		5.93		—
Class B		-14.08		0.01		5.67		—
Class E		-14.06		0.12		5.77		—
Class G		-14.12		-0.03		—		6.78
MSCI EAFE Index		-13.79		0.53		6.32		—

¹ The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

² Inception dates of the Class A, Class B, Class E and Class G shares are 11/9/98, 1/2/01, 5/1/01 and 4/28/09, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
iShares MSCI EAFE ETF		3.6
Nestle S.A.		1.9
Novartis AG		1.4
Roche Holding AG		1.3
HSBC Holdings plc		1.2
Royal Dutch Shell plc- A Shares		1.0
Toyota Motor Corp.		1.0
Total S.A.		1.0
BP plc		1.0
Royal Dutch Shell plc- B Shares		0.8

Top Countries

	% of Net Assets
Japan		23.0
United Kingdom		13.9
France		10.1
Switzerland		8.7
Germany		7.8
Netherlands		4.4
Hong Kong		3.4
Spain		2.9
Sweden		2.3
Italy		1.9

BHFTII-2

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MetLife MSCI EAFE Index Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.39	%	$	1,000.00	$	885.00	$	1.85
	Hypothetical*		0.39	%	$	1,000.00	$	1,023.24	$	1.99
Class B (a)	Actual		0.64	%	$	1,000.00	$	884.20	$	3.04
	Hypothetical*		0.64	%	$	1,000.00	$	1,021.98	$	3.26
Class E (a)	Actual		0.54	%	$	1,000.00	$	883.80	$	2.56
	Hypothetical*		0.54	%	$	1,000.00	$	1,022.48	$	2.75
Class G (a)	Actual		0.69	%	$	1,000.00	$	883.50	$	3.28
	Hypothetical*		0.69	%	$	1,000.00	$	1,021.73	$	3.52

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—94.1% of Net Assets

Security Description	Shares		Value
Australia—6.9%
AGL Energy, Ltd.		45,920	$	664,120
Alumina, Ltd.		191,453		307,204
Amcor, Ltd.		83,280		776,814
AMP, Ltd.		197,480		340,706
APA Group		80,604		482,308
Aristocrat Leisure, Ltd.		41,217		629,176
ASX, Ltd.		14,426		609,331
Aurizon Holdings, Ltd.		157,842		475,570
AusNet Services		135,720		148,656
Australia & New Zealand Banking Group, Ltd.		210,073		3,618,001
Bank of Queensland, Ltd.		24,917		169,508
Bendigo & Adelaide Bank, Ltd.		35,779		271,998
BGP Holdings plc (a) (b) (c) (d)		713,624		0
BHP Group plc		154,705		3,231,741
BHP Group, Ltd.		215,308		5,192,043
BlueScope Steel, Ltd.		45,759		353,019
Boral, Ltd.		86,560		301,012
Brambles, Ltd.		109,798		784,535
Caltex Australia, Ltd.		18,604		333,704
Challenger, Ltd.		44,035		294,191
CIMIC Group, Ltd.		8,428		257,541
Coca-Cola Amatil, Ltd.		42,510		245,084
Cochlear, Ltd.		4,099		497,833
Coles Group, Ltd. (b)		80,874		668,420
Commonwealth Bank of Australia		127,215		6,489,534
Computershare, Ltd.		28,910		349,838
Crown Resorts, Ltd.		29,464		245,996
CSL, Ltd.		32,919		4,296,956
Dexus		77,269		577,586
Domino’s Pizza Enterprises, Ltd.		4,557		130,401
Flight Centre Travel Group, Ltd.		4,135		124,935
Fortescue Metals Group, Ltd.		125,869		368,689
Goodman Group (REIT)		118,280		884,882
GPT Group (The) (REIT)		140,241		527,205
Incitec Pivot, Ltd.		131,085		302,671
Insurance Australia Group, Ltd.		180,136		887,646
Lend Lease Group (REIT)		39,184		319,479
Macquarie Group, Ltd.		23,361		1,786,696
Medibank Private, Ltd.		199,900		361,656
Mirvac Group (REIT)		272,935		430,393
National Australia Bank, Ltd.		198,109		3,360,026
Newcrest Mining, Ltd.		51,539		793,628
Oil Search, Ltd.		104,563		527,022
Orica, Ltd.		26,176		317,857
Origin Energy, Ltd. (b)		119,590		544,666
QBE Insurance Group, Ltd.		93,998		668,329
Ramsay Health Care, Ltd.		10,616		431,427
REA Group, Ltd.		4,158		216,538
Rio Tinto, Ltd.		28,205		1,559,227
Santos, Ltd.		145,305		560,524
Scentre Group (REIT)		367,395		1,008,629
Seek, Ltd.		22,233		264,811
Sonic Healthcare, Ltd.		32,696		508,901
South32, Ltd.		363,229		856,540
Stockland (REIT)		162,137		402,042
Suncorp Group, Ltd.		95,658		850,491
Sydney Airport		80,467		381,231
Australia—(Continued)
Tabcorp Holdings, Ltd.		153,298		462,951
Telstra Corp., Ltd.		309,539		621,031
TPG Telecom, Ltd.		27,310		123,809
Transurban Group		183,536		1,506,029
Treasury Wine Estates, Ltd.		53,467		557,012
Vicinity Centres (REIT)		252,185		461,518
Washington H Soul Pattinson & Co., Ltd.		7,905		137,817
Wesfarmers, Ltd.		80,874		1,835,691
Westpac Banking Corp.		248,548		4,381,552
Woodside Petroleum, Ltd.		65,682		1,449,962
Woolworths Group, Ltd.		97,245		2,014,014
WorleyParsons, Ltd.		23,498		188,892
				65,729,245
Austria—0.2%
Andritz AG		5,828		267,482
Erste Group Bank AG (b)		20,408		678,458
OMV AG		9,828		428,875
Raiffeisen Bank International AG		9,390		238,615
Verbund AG		4,951		210,796
Voestalpine AG		9,525		284,225
				2,108,451
Belgium—0.9%
Ageas		12,505		560,514
Anheuser-Busch InBev S.A.		55,258		3,648,802
Colruyt S.A.		4,373		310,815
Groupe Bruxelles Lambert S.A.		5,864		508,127
KBC Group NV		17,769		1,147,168
Proximus SADP		11,920		320,986
Solvay S.A.		5,735		569,877
Telenet Group Holding NV		4,184		193,792
UCB S.A.		9,619		782,435
Umicore S.A.		15,189		602,742
				8,645,258
Chile—0.0%
Antofagasta plc		26,957		266,948
China—0.2%
BeiGene, Ltd. (ADR) (b)		2,400		336,624
BOC Hong Kong Holdings, Ltd.		258,465		954,776
Minth Group, Ltd.		54,000		172,365
Yangzijiang Shipbuilding Holdings, Ltd.		176,900		160,824
				1,624,589
Denmark—1.7%
AP Moller - Maersk A/S - Class A		274		322,844
AP Moller - Maersk A/S - Class B		493		621,087
Carlsberg A/S - Class B		7,850		833,685
Chr Hansen Holding A/S		7,473		660,676
Coloplast A/S - Class B		8,619		799,247
Danske Bank A/S		53,890		1,065,898
DSV A/S		14,050		924,829
Genmab A/S (b)		4,236		692,964

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Denmark—(Continued)
H Lundbeck A/S		5,421	$	237,304
ISS A/S		12,164		338,941
Novo Nordisk A/S - Class B		132,271		6,069,530
Novozymes A/S - B Shares		16,399		731,726
Orsted A/S		14,039		938,100
Pandora A/S		7,708		312,982
Tryg A/S		8,735		219,491
Vestas Wind Systems A/S		13,376		1,013,846
William Demant Holding A/S (b)		7,349		207,964
				15,991,114
Finland—1.2%
Elisa Oyj		9,227		381,230
Fortum Oyj		30,377		664,720
Kone Oyj - Class B		26,344		1,252,110
Metso Oyj		7,511		197,656
Neste Oyj		9,073		698,941
Nokia Oyj		432,039		2,490,617
Nokian Renkaat Oyj		7,495		230,438
Nordea Bank Abp		226,093		1,906,260
Orion Oyj - Class B		8,084		280,188
Sampo Oyj - A Shares		32,484		1,424,794
Stora Enso Oyj - R Shares		40,497		467,820
UPM-Kymmene Oyj		37,640		954,915
Wartsila Oyj Abp		31,392		497,059
				11,446,748
France—10.1%
Accor S.A.		13,973		591,220
Aeroports de Paris		2,209		416,725
Air Liquide S.A.		30,993		3,828,393
Airbus SE		42,287		4,035,191
Alstom S.A.		9,907		398,126
Amundi S.A.		4,463		234,107
Arkema S.A.		5,073		431,931
Atos SE		7,084		575,074
AXA S.A.		140,288		3,015,733
BioMerieux		3,058		201,119
BNP Paribas S.A.		81,356		3,655,813
Bollore S.A.		61,600		245,536
Bouygues S.A.		14,921		532,340
Bureau Veritas S.A.		19,643		398,057
Capgemini SE		11,166		1,099,862
Carrefour S.A.		42,889		729,351
Casino Guichard Perrachon S.A. (e)		3,989		165,219
Cie deSt-Gobain		37,286		1,238,261
Cie Generale des Etablissements Michelin		12,172		1,200,705
CNP Assurances		10,520		222,019
Covivio		3,163		303,823
Credit Agricole S.A.		81,608		875,791
Danone S.A.		44,560		3,133,437
Dassault Aviation S.A.		183		252,826
Dassault Systemes SE		9,434		1,111,316
Edenred		17,136		626,732
Eiffage S.A.		5,760		480,792
Electricite de France S.A.		42,972		675,554
France—(Continued)
Engie S.A.		134,009		1,910,929
EssilorLuxottica S.A.		15,153		1,909,061
Eurazeo S.A.		2,731		192,366
Eutelsat Communications S.A.		14,990		295,767
Faurecia S.A.		5,604		209,852
Gecina S.A. (REIT)		3,720		479,131
Getlink SE		32,808		439,285
Hermes International		2,306		1,272,431
ICADE (REIT)		2,561		194,246
Iliad S.A.		1,762		245,694
Imerys S.A.		2,253		107,548
Ingenico Group S.A.		4,093		230,971
Ipsen S.A.		2,947		379,223
JCDecaux S.A.		4,706		131,403
Kering S.A.		5,564		2,598,124
Klepierre S.A. (REIT)		16,658		511,705
L’Oreal S.A.		18,412		4,216,921
Legrand S.A.		18,736		1,052,136
LVMH Moet Hennessy Louis Vuitton SE		20,298		5,950,947
Natixis S.A.		61,192		288,070
Orange S.A.		146,174		2,360,075
Pernod-Ricard S.A.		15,201		2,490,301
Peugeot S.A.		40,345		855,678
Publicis Groupe S.A.		15,420		880,508
Remy Cointreau S.A.		1,860		209,828
Renault S.A.		14,189		881,294
Rexel S.A.		20,752		220,769
Safran S.A.		24,628		2,952,096
Sanofi		82,145		7,082,783
Sartorius Stedim Biotech		2,011		200,202
Schneider Electric SE		39,783		2,701,368
SCOR SE		11,686		525,116
SEB S.A.		1,809		232,279
Societe BIC S.A.		2,149		218,432
Societe Generale S.A.		55,187		1,748,153
Sodexo S.A.		6,778		691,639
Suez		28,840		379,260
Teleperformance SE		4,265		681,177
Thales S.A.		7,807		906,101
Total S.A.		174,203		9,181,917
UBISOFT Entertainment S.A. (b)		5,696		455,924
Unibail-Rodamco-Westfield		9,927		1,529,931
Valeo S.A.		18,217		527,036
Veolia Environnement S.A.		38,959		797,312
Vinci S.A.		37,291		3,057,540
Vivendi S.A.		76,316		1,850,066
Wendel S.A.		2,267		271,303
				97,178,951
Germany—7.8%
1&1 Drillisch AG		3,915		198,701
adidas AG		13,435		2,801,154
Allianz SE		31,257		6,257,997
Aroundtown S.A.		56,219		465,522
Axel Springer SE		3,006		169,578
BASF SE		66,273		4,575,723

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Germany—(Continued)
Bayer AG		67,889	$	4,696,819
Bayerische Motoren Werke AG		23,596		1,906,635
Beiersdorf AG		7,090		738,252
Brenntag AG		11,405		491,113
Commerzbank AG (b)		77,199		510,183
Continental AG		8,198		1,131,033
Covestro AG		13,863		684,278
Daimler AG		66,196		3,472,466
Delivery Hero AG (b)		6,695		248,076
Deutsche Bank AG		146,810		1,168,909
Deutsche Boerse AG		14,033		1,683,741
Deutsche Lufthansa AG		17,782		400,114
Deutsche Post AG		71,872		1,964,028
Deutsche Telekom AG		241,713		4,096,577
Deutsche Wohnen SE		24,681		1,128,726
E.ON SE		159,780		1,576,083
Evonik Industries AG		13,109		326,671
Fraport AG Frankfurt Airport Services Worldwide		3,260		232,490
Fresenius Medical Care AG & Co. KGaA		15,649		1,014,191
Fresenius SE & Co. KGaA		30,614		1,476,451
GEA Group AG		14,300		367,920
Hannover Rueck SE		4,145		557,476
HeidelbergCement AG		10,444		637,285
Henkel AG & Co. KGaA		7,933		778,393
HOCHTIEF AG		1,646		221,346
Hugo Boss AG		4,934		303,610
Infineon Technologies AG		84,354		1,674,727
Innogy SE		11,200		521,476
KION Group AG		5,441		275,528
LANXESS AG		5,571		256,016
Merck KGaA		9,421		969,841
METRO AG		15,747		241,570
MTU Aero Engines AG		3,839		695,701
Muenchener Rueckversicherungs-Gesellschaft AG		10,610		2,310,180
OSRAM Licht AG		7,381		319,729
ProSiebenSat.1 Media SE		14,779		262,260
Puma SE		604		295,176
RWE AG		39,146		849,086
SAP SE		71,302		7,086,253
Siemens AG		55,353		6,159,470
Siemens Healthineers AG (b)		10,900		455,342
Symrise AG		8,745		644,780
Telefonica Deutschland Holding AG		58,800		229,549
ThyssenKrupp AG		31,577		540,742
TUI AG		30,068		431,182
Uniper SE		14,858		383,805
United Internet AG		8,781		383,255
Volkswagen AG		2,495		396,629
Vonovia SE		35,809		1,621,536
Wirecard AG		8,665		1,316,098
Zalando SE (b)		8,719		223,560
				74,825,032
Hong Kong—3.4%
AIA Group, Ltd.		879,000		7,231,943
ASM Pacific Technology, Ltd.		19,600		187,844
Hong Kong—(Continued)
Bank of East Asia, Ltd. (The)		103,920		328,964
CK Asset Holdings, Ltd.		188,440		1,370,492
CK Hutchison Holdings, Ltd.		201,440		1,925,302
CK Infrastructure Holdings, Ltd.		49,500		373,697
CLP Holdings, Ltd.		116,377		1,312,084
Dairy Farm International Holdings, Ltd.		24,600		222,173
Galaxy Entertainment Group, Ltd.		173,000		1,086,031
Hang Lung Group, Ltd.		74,000		188,032
Hang Lung Properties, Ltd.		162,000		308,829
Hang Seng Bank, Ltd.		54,400		1,215,229
Henderson Land Development Co., Ltd.		91,192		452,140
HK Electric Investments & HK Electric Investments, Ltd.		197,500		199,046
HKT Trust & HKT, Ltd.		277,980		400,293
Hong Kong & China Gas Co., Ltd.		693,469		1,431,409
Hong Kong Exchanges and Clearing, Ltd.		84,300		2,419,506
Hongkong Land Holdings, Ltd.		86,500		545,289
Hysan Development Co., Ltd.		45,000		213,401
Jardine Matheson Holdings, Ltd.		16,900		1,176,712
Jardine Strategic Holdings, Ltd.		14,600		533,406
Kerry Properties, Ltd.		57,500		195,384
Link REIT (REIT)		162,641		1,638,134
Melco Resorts & Entertainment, Ltd. (ADR)		19,800		348,876
MTR Corp., Ltd.		110,500		581,641
New World Development Co., Ltd.		463,707		609,239
NWS Holdings, Ltd.		99,000		203,200
PCCW, Ltd.		316,000		181,821
Power Assets Holdings, Ltd.		107,549		746,777
Sino Land Co., Ltd.		247,600		421,437
Sun Hung Kai Properties, Ltd.		116,250		1,648,550
Swire Pacific, Ltd. - Class A		36,817		386,831
Swire Properties, Ltd.		83,600		292,175
Techtronic Industries Co., Ltd.		95,000		500,813
WH Group, Ltd.		654,000		498,765
Wharf Holdings, Ltd. (The)		87,976		228,266
Wharf Real Estate Investment Co., Ltd.		87,976		523,030
Wheelock & Co., Ltd.		68,000		386,254
Yue Yuen Industrial Holdings, Ltd.		50,500		161,174
				32,674,189
Ireland—0.6%
AerCap Holdings NV (b)		10,200		403,920
AIB Group plc		60,112		252,117
Bank of Ireland Group plc		80,170		443,934
CRH plc		63,163		1,661,228
James Hardie Industries plc		31,140		331,450
Kerry Group plc - Class A		11,539		1,137,304
Kingspan Group plc		11,136		475,878
Paddy Power Betfair plc		6,200		506,789
Smurfit Kappa Group plc		16,402		434,589
				5,647,209
Israel—0.5%
Azrieli Group, Ltd.		3,090		147,631
Bank Hapoalim B.M.		79,475		504,336
Bank LeumiLe-Israel B.M.		109,068		660,782
Bezeq The Israeli Telecommunication Corp., Ltd.		160,513		157,088

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Israel—(Continued)
Check Point Software Technologies, Ltd. (b)		9,300	$	954,645
Elbit Systems, Ltd.		895		102,916
Israel Chemicals, Ltd.		54,463		309,883
Mizrahi Tefahot Bank, Ltd.		11,922		201,912
Nice, Ltd. (b)		4,746		514,296
Teva Pharmaceutical Industries, Ltd. (ADR) (b)		70,353		1,084,843
Wix.com, Ltd. (b)		3,200		289,088
				4,927,420
Italy—1.9%
Assicurazioni Generali S.p.A.		85,274		1,423,690
Atlantia S.p.A.		36,067		745,181
Davide Campari-Milano S.p.A.		42,874		362,053
Enel S.p.A.		602,326		3,466,976
Eni S.p.A.		184,398		2,897,336
Ferrari NV		8,377		831,433
Intesa Sanpaolo S.p.A.		1,083,294		2,395,430
Leonardo S.p.A.		28,782		252,769
Luxottica Group S.p.A.		13,581		801,725
Mediobanca S.p.A.		44,816		378,095
Moncler S.p.A.		13,024		434,220
Pirelli & C S.p.A. (b)		29,117		186,822
Poste Italiane S.p.A.		41,357		331,168
Prysmian S.p.A.		16,202		313,442
Recordati S.p.A.		8,194		283,773
Snam S.p.A.		162,854		711,229
Telecom Italia S.p.A. (b)		826,906		457,051
Telecom Italia S.p.A. - Risparmio Shares		437,140		208,472
Terna Rete Elettrica Nazionale S.p.A.		92,957		526,484
UniCredit S.p.A.		142,434		1,612,094
				18,619,443
Japan—23.0%
Aeon Co., Ltd.		44,500		874,895
AEON Financial Service Co., Ltd.		8,400		150,744
Aeon Mall Co., Ltd.		7,600		121,466
Air Water, Inc.		10,000		150,091
Aisin Seiki Co., Ltd.		10,600		365,394
Ajinomoto Co., Inc.		31,900		565,356
Alfresa Holdings Corp.		15,300		395,434
Alps Electric Co., Ltd.		13,100		252,755
Amada Holdings Co., Ltd.		27,000		240,572
ANA Holdings, Inc.		8,400		302,497
Aozora Bank, Ltd.		9,600		284,390
Asahi Glass Co., Ltd.		12,600		390,576
Asahi Group Holdings, Ltd.		27,300		1,065,254
Asahi Intecc Co., Ltd.		7,100		301,907
Asahi Kasei Corp.		97,000		988,710
Asics Corp.		11,000		139,285
Astellas Pharma, Inc.		141,100		1,793,856
Bandai Namco Holdings, Inc.		16,000		713,155
Bank of Kyoto, Ltd. (The)		4,400		180,271
Benesse Holdings, Inc.		5,400		137,172
Bridgestone Corp.		44,400		1,702,290
Brother Industries, Ltd.		16,400		240,483
Calbee, Inc.		5,500		171,708
Japan—(Continued)
Canon, Inc. (e)		72,900		2,006,703
Casio Computer Co., Ltd.		16,900		202,247
Central Japan Railway Co.		10,100		2,143,977
Chiba Bank, Ltd. (The)		49,000		271,436
Chubu Electric Power Co., Inc.		45,700		649,204
Chugai Pharmaceutical Co., Ltd.		16,800		969,518
Chugoku Electric Power Co., Inc. (The)		23,700		306,980
Coca-Cola Bottlers Japan Holdings, Inc.		9,900		295,244
Concordia Financial Group, Ltd.		83,000		316,160
Credit Saison Co., Ltd.		10,500		122,321
CyberAgent, Inc.		7,400		288,667
Dai Nippon Printing Co., Ltd.		20,000		415,725
Dai-ichi Life Holdings, Inc.		75,800		1,173,366
Daicel Corp.		22,000		225,853
Daifuku Co., Ltd.		7,400		333,241
Daiichi Sankyo Co., Ltd.		42,100		1,352,037
Daikin Industries, Ltd.		18,200		1,913,286
Daito Trust Construction Co., Ltd.		5,200		709,527
Daiwa House Industry Co., Ltd.		42,500		1,348,428
Daiwa House REIT Investment Corp. (REIT)		110		245,987
Daiwa Securities Group, Inc.		118,000		601,067
DeNA Co., Ltd.		8,400		139,643
Denso Corp.		31,000		1,374,403
Dentsu, Inc.		16,600		737,209
Disco Corp.		2,300		265,189
Don Quijote Holdings Co., Ltd.		8,200		508,186
East Japan Railway Co.		22,300		1,980,117
Eisai Co., Ltd.		18,200		1,415,709
Electric Power Development Co., Ltd.		10,900		257,916
FamilyMart UNY Holdings Co., Ltd.		4,400		555,321
FANUC Corp.		14,000		2,102,617
Fast Retailing Co., Ltd.		4,300		2,197,404
Fuji Electric Co., Ltd.		8,600		250,520
FUJIFILM Holdings Corp.		29,400		1,133,371
Fujitsu, Ltd.		14,600		914,368
Fukuoka Financial Group, Inc.		10,600		213,538
Hakuhodo DY Holdings, Inc.		17,600		249,492
Hamamatsu Photonics KK		9,600		324,491
Hankyu Hanshin Holdings, Inc.		16,400		548,687
Hikari Tsushin, Inc.		1,800		282,872
Hino Motors, Ltd.		19,000		178,243
Hirose Electric Co., Ltd.		2,415		238,770
Hisamitsu Pharmaceutical Co., Inc.		4,500		245,325
Hitachi Construction Machinery Co., Ltd.		8,900		205,938
Hitachi High-Technologies Corp.		5,500		171,387
Hitachi Metals, Ltd.		20,000		207,484
Hitachi, Ltd.		70,200		1,864,172
Honda Motor Co., Ltd.		118,800		3,101,268
Hoshizaki Corp.		4,100		250,903
Hoya Corp.		26,800		1,636,435
Hulic Co., Ltd.		17,100		152,866
Idemitsu Kosan Co., Ltd.		10,500		345,725
IHI Corp.		12,200		334,541
Iida Group Holdings Co., Ltd.		12,700		221,673
Inpex Corp.		71,100		633,873
Isetan Mitsukoshi Holdings, Ltd.		26,900		296,673
Isuzu Motors, Ltd.		43,700		609,539

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
ITOCHU Corp.		105,400	$	1,775,888
J Front Retailing Co., Ltd.		17,900		206,692
Japan Airlines Co., Ltd.		8,400		297,222
Japan Exchange Group, Inc.		38,100		611,264
Japan Post Bank Co., Ltd.		30,800		337,824
Japan Post Holdings Co., Ltd.		119,400		1,371,418
Japan Prime Realty Investment Corp. (REIT)		51		193,474
Japan Real Estate Investment Corp. (REIT)		96		538,567
Japan Retail Fund Investment Corp. (REIT)		202		404,059
Japan Tobacco, Inc.		79,300		1,879,499
JFE Holdings, Inc.		35,100		557,910
JGC Corp.		14,000		195,235
JSR Corp.		11,000		164,210
JTEKT Corp.		20,000		221,106
JXTG Holdings, Inc.		237,600		1,244,099
Kajima Corp.		32,000		428,524
Kakaku.com, Inc.		10,700		187,990
Kamigumi Co., Ltd.		8,500		173,267
Kaneka Corp.		4,400		157,080
Kansai Electric Power Co., Inc. (The)		55,000		825,044
Kansai Paint Co., Ltd.		10,300		197,481
Kao Corp.		35,200		2,592,550
Kawasaki Heavy Industries, Ltd.		12,400		263,424
KDDI Corp.		127,000		3,023,385
Keihan Holdings Co., Ltd.		7,800		316,968
Keikyu Corp.		18,000		296,248
Keio Corp.		6,600		385,889
Keisei Electric Railway Co., Ltd.		10,000		310,996
Keyence Corp.		7,100		3,574,675
Kikkoman Corp.		9,600		514,671
Kintetsu Group Holdings Co., Ltd.		10,812		467,412
Kirin Holdings Co., Ltd.		60,300		1,267,131
Kobayashi Pharmaceutical Co., Ltd.		3,600		246,303
Kobe Steel, Ltd.		27,200		188,195
Koito Manufacturing Co., Ltd.		7,700		392,403
Komatsu, Ltd.		65,500		1,393,862
Konami Holdings Corp.		7,300		321,124
Konica Minolta, Inc.		37,000		331,757
Kose Corp.		2,300		364,401
Kubota Corp.		70,700		994,516
Kuraray Co., Ltd.		24,500		343,374
Kurita Water Industries, Ltd.		7,100		170,394
Kyocera Corp.		22,700		1,127,719
Kyowa Hakko Kirin Co., Ltd.		20,000		375,444
Kyushu Electric Power Co., Inc.		25,900		307,661
Kyushu Railway Co.		12,700		427,424
Lawson, Inc.		3,800		241,043
LINE Corp. (b) (e)		5,300		180,995
Lion Corp.		19,000		391,515
LIXIL Group Corp.		19,000		236,976
M3, Inc.		31,400		425,066
Makita Corp.		15,200		537,716
Marubeni Corp.		105,000		729,945
Marui Group Co., Ltd.		16,000		309,096
Mazda Motor Corp.		43,000		441,878
McDonald’s Holdings Co. Japan, Ltd. (e)		5,400		229,836
Mebuki Financial Group, Inc.		63,100		166,403
Japan—(Continued)
Medipal Holdings Corp.		10,700		231,227
MEIJI Holdings Co., Ltd.		9,600		781,477
Minebea Mitsumi, Inc.		30,800		441,845
MISUMI Group, Inc.		22,200		462,846
Mitsubishi Chemical Holdings Corp.		93,700		704,214
Mitsubishi Corp.		98,500		2,685,657
Mitsubishi Electric Corp.		131,200		1,436,891
Mitsubishi Estate Co., Ltd.		82,300		1,288,426
Mitsubishi Gas Chemical Co., Inc.		13,000		194,019
Mitsubishi Heavy Industries, Ltd.		20,800		746,384
Mitsubishi Materials Corp.		7,900		206,907
Mitsubishi Motors Corp.		44,999		248,191
Mitsubishi Tanabe Pharma Corp.		15,300		219,596
Mitsubishi UFJ Financial Group, Inc.		860,888		4,240,903
Mitsubishi UFJ Lease & Finance Co., Ltd.		16,700		79,940
Mitsui & Co., Ltd.		118,417		1,833,407
Mitsui Chemicals, Inc.		15,000		336,209
Mitsui Fudosan Co., Ltd.		65,000		1,438,786
Mitsui OSK Lines, Ltd.		7,500		162,792
Mizuho Financial Group, Inc.		1,752,400		2,728,500
MonotaRO Co., Ltd.		9,200		224,129
MS&AD Insurance Group Holdings, Inc.		35,900		1,018,011
Murata Manufacturing Co., Ltd.		12,900		1,775,677
Nabtesco Corp.		7,500		161,208
Nagoya Railroad Co., Ltd.		14,800		392,135
NEC Corp.		20,600		616,099
Nexon Co., Ltd. (b)		32,300		412,206
NGK Insulators, Ltd.		19,300		259,913
NGK Spark Plug Co., Ltd.		12,000		236,481
NH Foods, Ltd.		7,000		262,878
Nidec Corp.		16,300		1,866,184
Nikon Corp.		22,500		333,083
Nintendo Co., Ltd.		8,100		2,137,962
Nippon Building Fund, Inc. (REIT)		88		553,648
Nippon Electric Glass Co., Ltd.		6,200		150,601
Nippon Express Co., Ltd.		5,900		327,442
Nippon Paint Holdings Co., Ltd. (e)		9,500		321,800
Nippon Prologis REIT, Inc.		143		301,571
Nippon Steel & Sumitomo Metal Corp.		56,300		961,755
Nippon Telegraph & Telephone Corp.		50,400		2,050,031
Nippon Yusen KK		12,600		195,037
Nissan Chemical Corp.		10,000		520,037
Nissan Motor Co., Ltd.		166,900		1,343,836
Nisshin Seifun Group, Inc.		15,700		323,791
Nissin Foods Holdings Co., Ltd.		4,700		294,639
Nitori Holdings Co., Ltd.		5,800		719,731
Nitto Denko Corp.		12,600		628,464
Nomura Holdings, Inc.		241,200		918,722
Nomura Real Estate Holdings, Inc.		9,500		173,156
Nomura Real Estate Master Fund, Inc. (REIT)		322		423,329
Nomura Research Institute, Ltd.		6,900		253,388
NSK, Ltd.		26,600		227,805
NTT Data Corp.		40,780		445,094
NTT DoCoMo, Inc.		94,600		2,122,112
Obayashi Corp.		45,500		408,147
Obic Co., Ltd.		5,000		382,271
Odakyu Electric Railway Co., Ltd.		20,100		440,063

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
OJI Holdings Corp.		68,000	$	347,696
Olympus Corp.		22,800		696,483
Omron Corp.		13,400		482,493
Ono Pharmaceutical Co., Ltd.		26,100		527,685
Oracle Corp. Japan		3,000		189,622
Oriental Land Co., Ltd.		14,000		1,420,007
ORIX Corp.		92,600		1,344,094
Osaka Gas Co., Ltd.		29,000		529,372
Otsuka Corp.		7,400		202,391
Otsuka Holdings Co., Ltd.		28,200		1,149,637
Panasonic Corp.		161,300		1,445,843
Park24 Co., Ltd.		7,400		163,408
Persol Holdings Co., Ltd.		13,400		196,596
Pigeon Corp.		8,500		366,659
Pola Orbis Holdings, Inc.		7,600		203,395
Rakuten, Inc.		61,500		408,519
Recruit Holdings Co., Ltd.		80,900		1,934,866
Renesas Electronics Corp. (b)		61,100		279,964
Resona Holdings, Inc.		143,300		684,792
Ricoh Co., Ltd.		48,600		474,843
Rinnai Corp.		2,800		183,178
Rohm Co., Ltd.		6,700		422,866
Ryohin Keikaku Co., Ltd.		1,800		437,626
Sankyo Co., Ltd.		3,300		124,836
Santen Pharmaceutical Co., Ltd.		27,500		393,157
SBI Holdings, Inc.		16,511		321,965
Secom Co., Ltd.		15,500		1,278,449
Sega Sammy Holdings, Inc.		12,900		181,728
Seibu Holdings, Inc.		13,800		239,137
Seiko Epson Corp.		20,000		280,347
Sekisui Chemical Co., Ltd.		29,500		436,053
Sekisui House, Ltd.		45,500		666,444
Seven & i Holdings Co., Ltd.		55,000		2,392,430
Seven Bank, Ltd.		44,200		125,937
SG Holdings Co., Ltd.		7,200		188,642
Sharp Corp.		12,000		121,819
Shimadzu Corp.		14,600		285,406
Shimano, Inc.		5,400		766,916
Shimizu Corp.		39,000		320,192
Shin-Etsu Chemical Co., Ltd.		26,400		2,031,838
Shinsei Bank, Ltd.		12,900		152,530
Shionogi & Co., Ltd.		19,700		1,115,942
Shiseido Co., Ltd.		27,700		1,719,414
Shizuoka Bank, Ltd. (The)		25,800		200,613
Showa Denko KK		9,900		290,095
Showa Shell Sekiyu KK		14,800		207,050
SMC Corp.		4,100		1,223,443
SoftBank Group Corp.		60,500		3,983,844
Sohgo Security Services Co., Ltd.		4,800		225,761
Sompo Holdings, Inc.		23,599		795,777
Sony Corp.		91,800		4,416,371
Sony Financial Holdings, Inc.		12,800		237,348
Stanley Electric Co., Ltd.		9,700		270,240
Subaru Corp.		45,400		968,215
SUMCO Corp. (e)		17,600		198,256
Sumitomo Chemical Co., Ltd.		117,000		571,598
Sumitomo Corp.		83,900		1,182,391
Japan—(Continued)
Sumitomo Dainippon Pharma Co., Ltd.		12,500		402,179
Sumitomo Electric Industries, Ltd.		57,634		760,075
Sumitomo Heavy Industries, Ltd.		7,800		229,718
Sumitomo Metal Mining Co., Ltd.		16,600		441,067
Sumitomo Mitsui Financial Group, Inc.		95,300		3,139,541
Sumitomo Mitsui Trust Holdings, Inc.		22,826		830,008
Sumitomo Realty & Development Co., Ltd.		26,000		948,664
Sumitomo Rubber Industries, Ltd.		12,500		148,615
Sundrug Co., Ltd.		6,000		178,294
Suntory Beverage & Food, Ltd.		10,400		468,939
Suzuken Co., Ltd.		5,800		297,381
Suzuki Motor Corp.		26,200		1,324,404
Sysmex Corp.		12,200		588,025
T&D Holdings, Inc.		39,400		454,078
Taiheiyo Cement Corp.		8,200		252,123
Taisei Corp.		16,000		679,561
Taisho Pharmaceutical Holdings Co., Ltd.		3,000		297,963
Taiyo Nippon Sanso Corp.		9,600		157,903
Takashimaya Co., Ltd.		9,500		120,597
Takeda Pharmaceutical Co., Ltd.		50,800		1,721,954
TDK Corp.		9,500		675,299
Teijin, Ltd.		13,200		209,932
Terumo Corp.		22,100		1,240,321
THK Co., Ltd.		7,700		142,945
Tobu Railway Co., Ltd.		14,600		391,220
Toho Co., Ltd.		8,500		306,870
Toho Gas Co., Ltd.		6,200		260,993
Tohoku Electric Power Co., Inc.		28,000		367,664
Tokio Marine Holdings, Inc.		49,700		2,360,148
Tokyo Century Corp.		3,200		139,088
Tokyo Electric Power Co. Holdings, Inc. (b)		112,000		661,675
Tokyo Electron, Ltd.		11,300		1,295,143
Tokyo Gas Co., Ltd.		26,400		666,975
Tokyu Corp.		37,500		608,848
Tokyu Fudosan Holdings Corp.		37,000		183,487
Toppan Printing Co., Ltd.		20,500		299,712
Toray Industries, Inc.		108,500		757,313
Toshiba Corp.		47,500		1,347,038
Tosoh Corp.		23,000		297,300
TOTO, Ltd.		10,400		357,138
Toyo Seikan Group Holdings, Ltd.		8,300		189,146
Toyo Suisan Kaisha, Ltd.		6,000		209,178
Toyota Industries Corp.		10,100		464,291
Toyota Motor Corp.		166,300		9,649,149
Toyota Tsusho Corp.		15,500		455,410
Trend Micro, Inc.		8,900		481,194
Tsuruha Holdings, Inc.		2,900		248,510
Unicharm Corp.		27,400		884,326
United Urban Investment Corp. (REIT)		213		329,947
USS Co., Ltd.		16,600		276,773
Welcia Holdings Co., Ltd.		3,500		158,803
West Japan Railway Co.		11,500		811,370
Yahoo Japan Corp.		206,700		518,752
Yakult Honsha Co., Ltd.		8,200		574,346
Yamada Denki Co., Ltd.		46,500		222,567
Yamaguchi Financial Group, Inc.		15,000		143,229
Yamaha Corp.		8,800		373,242

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Japan—(Continued)
Yamaha Motor Co., Ltd.		18,700	$	363,582
Yamato Holdings Co., Ltd.		21,800		593,482
Yamazaki Baking Co., Ltd.		9,000		188,345
Yaskawa Electric Corp.		18,000		435,467
Yokogawa Electric Corp.		16,300		279,308
Yokohama Rubber Co., Ltd. (The)		9,200		171,441
ZOZO, Inc.		14,400		259,659
				220,369,938
Luxembourg—0.3%
ArcelorMittal		46,976		967,062
Eurofins Scientific SE		878		325,313
Millicom International Cellular S.A.		5,384		341,534
RTL Group S.A.		2,700		144,189
SES S.A.		29,140		556,877
Tenaris S.A.		35,513		379,809
				2,714,784
Macau—0.1%
Sands China, Ltd.		176,400		764,016
Wynn Macau, Ltd.		95,600		205,746
				969,762
Mexico—0.0%
Fresnillo plc		14,894		162,656
Netherlands—4.4%
ABN AMRO Group NV		29,995		700,988
Aegon NV		119,047		552,162
Akzo Nobel NV		18,312		1,468,626
ASML Holding NV		29,837		4,644,811
EXOR NV		8,104		436,925
Heineken Holding NV		7,836		658,010
Heineken NV		18,534		1,629,831
ING Groep NV		284,141		3,038,180
Koninklijke Ahold Delhaize NV		91,575		2,304,973
Koninklijke DSM NV		13,712		1,113,163
Koninklijke KPN NV		263,537		768,497
Koninklijke Philips NV		68,497		2,408,566
Koninklijke Vopak NV		3,942		178,169
NN Group NV		21,018		833,039
NXP Semiconductors NV		25,300		1,853,984
Randstad NV		9,402		429,039
Royal Dutch Shell plc - A Shares		334,642		9,814,207
Royal Dutch Shell plc - B Shares		271,764		8,080,474
Wolters Kluwer NV		21,135		1,245,259
				42,158,903
New Zealand—0.2%
a2 Milk Co., Ltd. (b)		53,251		393,414
Auckland International Airport, Ltd.		69,174		331,717
Fisher & Paykel Healthcare Corp., Ltd.		44,270		383,485
Fletcher Building, Ltd. (b)		68,594		224,368
Meridian Energy, Ltd.		93,292		212,141
Ryman Healthcare, Ltd.		29,900		214,651
New Zealand—(Continued)
Spark New Zealand, Ltd.		106,142		294,513
				2,054,289
Norway—0.7%
Aker BP ASA		7,864		198,854
DNB ASA		68,520		1,097,451
Equinor ASA		87,269		1,858,397
Gjensidige Forsikring ASA		14,357		223,283
Marine Harvest ASA		30,284		636,578
Norsk Hydro ASA		91,188		412,124
Orkla ASA		62,161		488,087
Schibsted ASA - B Shares		7,443		225,474
Telenor ASA		51,893		1,000,273
Yara International ASA		14,337		549,503
				6,690,024
Portugal—0.2%
Banco Espirito Santo S.A. (a) (b) (c) (d)		199,038		0
EDP - Energias de Portugal S.A.		185,244		644,746
Galp Energia SGPS S.A.		37,002		584,606
Jeronimo Martins SGPS S.A.		18,255		215,637
				1,444,989
Singapore—1.3%
Ascendas Real Estate Investment Trust (REIT)		215,000		404,239
CapitaLand Commercial Trust (REIT)		166,738		213,636
CapitaLand Mall Trust (REIT)		157,500		260,581
CapitaLand, Ltd.		172,300		391,851
City Developments, Ltd.		34,000		201,763
ComfortDelGro Corp., Ltd.		153,000		240,260
DBS Group Holdings, Ltd.		131,667		2,274,792
Genting Singapore, Ltd.		418,200		299,361
Jardine Cycle & Carriage, Ltd.		8,888		229,430
Keppel Corp., Ltd.		113,900		494,841
Oversea-Chinese Banking Corp., Ltd.		230,564		1,893,710
SATS, Ltd.		56,300		192,929
Sembcorp Industries, Ltd.		73,200		136,691
Singapore Airlines, Ltd.		33,140		228,161
Singapore Exchange, Ltd.		54,400		284,248
Singapore Press Holdings, Ltd.		84,250		144,757
Singapore Technologies Engineering, Ltd.		130,000		331,521
Singapore Telecommunications, Ltd.		601,420		1,289,988
Suntec Real Estate Investment Trust (REIT)		179,000		233,220
United Overseas Bank, Ltd.		96,892		1,736,609
UOL Group, Ltd.		33,000		149,309
Venture Corp., Ltd.		20,500		207,743
Wilmar International, Ltd.		144,000		329,900
				12,169,540
South Africa—0.2%
Anglo American plc		76,685		1,693,872
Investec plc		52,596		293,227
				1,987,099

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Spain—2.9%
ACS Actividades de Construccion y Servicios S.A.		19,619	$	752,508
Aena SME S.A.		5,006		774,404
Amadeus IT Group S.A.		31,507		2,188,827
Banco Bilbao Vizcaya Argentaria S.A.		485,964		2,557,649
Banco de Sabadell S.A.		385,331		437,434
Banco Santander S.A.		1,181,455		5,319,621
Bankia S.A.		80,824		234,824
Bankinter S.A.		48,939		390,247
CaixaBank S.A.		268,510		964,203
Enagas S.A.		17,953		483,677
Endesa S.A.		23,384		536,975
Ferrovial S.A.		34,181		687,819
Grifols S.A.		21,632		563,752
Iberdrola S.A.		433,857		3,463,603
Industria de Diseno Textil S.A.		79,108		2,012,129
Mapfre S.A.		74,474		196,957
Naturgy Energy Group S.A.		25,426		643,588
Red Electrica Corp. S.A.		29,508		655,788
Repsol S.A.		99,138		1,590,064
Siemens Gamesa Renewable Energy S.A. (b)		18,682		225,847
Telefonica S.A.		338,883		2,853,766
				27,533,682
Sweden—2.3%
Alfa Laval AB		20,852		445,011
Assa Abloy AB - Class B		72,914		1,303,223
Atlas Copco AB - A Shares (b)		49,888		1,191,463
Atlas Copco AB - B Shares (b)		28,433		623,192
Boliden AB		20,002		434,894
Electrolux AB - Series B		17,118		362,566
Epiroc AB - Class A (b)		49,888		473,628
Epiroc AB - Class B (b)		28,433		254,432
Essity AB - Class B		43,954		1,079,779
Hennes & Mauritz AB - B Shares (e)		61,284		870,167
Hexagon AB - B Shares		19,206		886,202
Husqvarna AB - B Shares		25,677		190,847
ICA Gruppen AB		5,619		200,973
Industrivarden AB - C Shares		10,214		207,141
Investor AB - B Shares		31,910		1,355,837
Kinnevik AB - Class B		16,046		388,118
L E Lundbergforetagen AB - B Shares		6,090		179,951
Lundin Petroleum AB		16,017		400,314
Sandvik AB		84,986		1,215,620
Securitas AB - B Shares		21,462		344,944
Skandinaviska Enskilda Banken AB - Class A		113,560		1,105,062
Skanska AB - B Shares		24,008		383,202
SKF AB - B Shares		25,976		395,414
Svenska Handelsbanken AB - A Shares		113,277		1,254,438
Swedbank AB - A Shares		65,848		1,467,403
Swedish Match AB		14,499		571,433
Tele2 AB - B Shares		33,676		430,167
Telefonaktiebolaget LM Ericsson - B Shares		220,757		1,945,116
Telia Co. AB		204,113		968,268
Volvo AB - B Shares		113,997		1,498,423
				22,427,228
Switzerland—8.7%
ABB, Ltd.		136,042		2,586,088
Adecco Group AG		10,992		513,251
Baloise Holding AG		3,839		528,327
Barry Callebaut AG		132		204,665
Chocoladefabriken Lindt & Spruengli AG		7		520,171
Chocoladefabriken Lindt & Spruengli AG (Participation Certifcate)		81		501,692
Cie Financiere Richemont S.A.		37,512		2,403,708
Clariant AG (b)		17,152		315,543
Coca-Cola HBC AG (b)		13,800		429,061
Credit Suisse Group AG (b)		186,061		2,044,387
Dufry AG (b) (e)		2,729		258,421
EMS-Chemie Holding AG		579		274,890
Ferguson plc		17,515		1,120,884
Geberit AG		2,723		1,057,755
Givaudan S.A.		649		1,500,875
Glencore plc (b)		840,024		3,095,881
Julius Baer Group, Ltd. (b)		17,027		606,649
Kuehne & Nagel International AG		4,135		531,484
LafargeHolcim, Ltd. (b)		35,343		1,456,156
Lonza Group AG (b)		5,308		1,375,898
Nestle S.A.		222,716		18,053,733
Novartis AG		157,830		13,478,117
Pargesa Holding S.A.		3,025		217,881
Partners Group Holding AG		1,182		716,344
Roche Holding AG		50,970		12,566,491
Schindler Holding AG		1,428		276,894
Schindler Holding AG (Participation Certificate)		3,216		637,050
SGS S.A.		367		824,420
Sika AG		9,000		1,140,476
Sonova Holding AG		4,058		659,716
STMicroelectronics NV		49,712		707,810
Straumann Holding AG		747		471,094
Swatch Group AG (The)		4,374		252,796
Swatch Group AG (The) - Bearer Shares		2,245		654,832
Swiss Life Holding AG (b)		2,458		945,944
Swiss Prime Site AG (b)		5,000		403,905
Swiss Re AG		22,839		2,092,319
Swisscom AG		1,853		884,160
Temenos AG (b)		4,384		526,771
UBS Group AG (b)		280,535		3,491,606
Vifor Pharma AG		3,820		413,395
Zurich Insurance Group AG		10,792		3,215,052
				83,956,592
United Arab Emirates—0.0%
NMC Health plc		7,569		264,379
United Kingdom—13.9%
3i Group plc		70,865		695,240
Admiral Group plc		16,009		415,826
Ashtead Group plc		37,846		783,493
Associated British Foods plc		27,546		715,852
AstraZeneca plc		91,643		6,848,187
Auto Trader Group plc		75,401		434,833
Aviva plc		288,445		1,374,644
Babcock International Group plc		22,688		141,397

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
United Kingdom—(Continued)
BAE Systems plc		231,979	$	1,352,888
Barclays plc		1,244,471		2,385,298
Barratt Developments plc		69,622		410,633
Berkeley Group Holdings plc		10,289		456,012
BP plc		1,449,949		9,141,165
British American Tobacco plc		166,044		5,290,853
British Land Co. plc (The) (REIT)		73,348		498,011
BT Group plc		630,635		1,907,452
Bunzl plc		27,344		822,102
Burberry Group plc		32,742		719,795
Centrica plc		412,821		709,309
CNH Industrial NV		78,026		700,367
Coca-Cola European Partners plc		16,100		738,185
Compass Group plc		116,519		2,444,360
ConvaTec Group plc		91,978		162,336
Croda International plc		9,266		549,967
DCC plc		7,008		532,314
Diageo plc		178,216		6,329,454
Direct Line Insurance Group plc		89,919		363,913
easyJet plc		10,815		151,706
Experian plc		65,580		1,592,653
Fiat Chrysler Automobiles NV (b)		78,476		1,138,354
G4S plc		108,086		270,291
GlaxoSmithKline plc		360,925		6,844,856
GVC Holdings plc		39,400		338,381
Hammerson plc (REIT)		54,049		226,166
Hargreaves Lansdown plc		20,716		487,718
HSBC Holdings plc		1,456,681		11,944,682
Imperial Brands plc		70,611		2,133,600
Informa plc		91,052		729,546
InterContinental Hotels Group plc		12,234		657,904
International Consolidated Airlines Group S.A. - Class DI		49,850		394,715
Intertek Group plc		11,453		696,711
J Sainsbury plc		120,106		404,684
John Wood Group plc		51,100		326,922
Johnson Matthey plc		15,590		555,798
Kingfisher plc (e)		151,460		400,388
Land Securities Group plc (REIT)		54,641		559,691
Legal & General Group plc		421,904		1,237,013
Lloyds Banking Group plc		5,220,354		3,446,776
London Stock Exchange Group plc		22,230		1,146,280
Marks & Spencer Group plc		137,472		432,941
Meggitt plc		55,862		333,916
Melrose Industries plc (e)		351,107		726,482
Merlin Entertainments plc		52,353		211,715
Micro Focus International plc		33,650		587,673
Mondi plc		27,093		560,177
National Grid plc		249,620		2,412,072
Next plc		9,783		497,470
Pearson plc		63,486		756,253
Persimmon plc		22,805		558,271
Prudential plc		186,011		3,320,863
Reckitt Benckiser Group plc		48,931		3,733,733
RELX plc		143,278		2,940,467
Rio Tinto plc		84,969		4,048,218
Rolls-Royce Holdings plc (b)		116,835		1,228,552
Royal Bank of Scotland Group plc		355,393		976,411
United Kingdom—(Continued)
Royal Mail plc		67,965		235,767
RSA Insurance Group plc		74,322		484,550
Sage Group plc (The)		77,930		596,178
Schroders plc		7,697		238,523
Segro plc (REIT)		74,212		556,225
Severn Trent plc		20,415		471,289
Smith & Nephew plc		62,049		1,153,109
Smiths Group plc		31,976		553,190
SSE plc		72,948		1,002,192
St. James’s Place plc		38,927		466,036
Standard Chartered plc		203,987		1,575,516
Standard Life Aberdeen plc		163,097		533,240
Taylor Wimpey plc		240,026		414,850
Tesco plc		690,838		1,672,683
Unilever NV		112,339		6,090,087
Unilever plc		82,237		4,300,715
United Utilities Group plc		57,234		535,529
Vodafone Group plc		1,935,083		3,757,165
Weir Group plc (The)		17,104		281,000
Whitbread plc		14,502		843,530
WM Morrison Supermarkets plc		166,578		451,140
WPP plc		93,040		998,493
				133,144,942
United States—0.5%
Carnival plc		13,029		624,468
QIAGEN NV (b)		15,166		515,961
Shire plc		65,970		3,830,892
				4,971,321
Total Common Stocks (Cost $862,711,809)				902,704,725
Mutual Fund—3.6%
United States—3.6%
iShares MSCI EAFE ETF (e) (f) (Cost $38,839,999)		590,000		34,680,200
Preferred Stocks—0.5%
Germany—0.5%
Bayerische Motoren Werke (BMW) AG		3,581		254,281
FUCHS Petrolub SE		4,900		201,533
Henkel AG & Co. KGaA		12,893		1,404,713
Porsche Automobil Holding SE		11,105		655,939
Sartorius AG		2,589		322,572
Volkswagen AG		13,371		2,122,945
Total Preferred Stocks (Cost $4,249,327)				4,961,983

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Rights—0.0%

Security Description	Shares/ Principal Amount*		Value
Spain—0.0%
Repsol S.A., Expires 12/19/18 (b) (Cost $46,505)		99,138	$	45,332
Short-Term Investments—1.6%
Discount Notes—0.5%
Federal Home Loan Bank 2.056%, 01/09/19 (g)		650,000		649,699
2.189%, 01/18/11 (g)		375,000		374,603
2.273%, 01/23/19 (g)		125,000		124,826
2.288%, 01/30/19 (g)		675,000		673,751
2.329%, 02/06/19 (g)		2,650,000		2,643,818
				4,466,697
U.S. Treasury—1.1%
U.S. Treasury Bills 1.998%, 01/08/19 (g)		2,375,000		2,374,098
2.138%, 01/17/19 (g)		575,000		574,444
2.210%, 01/22/19 (g)		2,350,000		2,346,952
2.305%, 01/29/19 (g)		3,500,000		3,493,554
2.332%, 02/21/19 (g)		1,950,000		1,943,491
				10,732,539
Total Short-Term Investments (Cost $15,198,987)				15,199,236
Securities Lending Reinvestments (h)—2.3%
Certificate of Deposit—0.1%
Natixis New York 2.940%, SOFR + 0.480%, 06/12/19 (i)		1,000,000		999,894
Commercial Paper—0.2%
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (i)		1,500,000		1,500,140
Repurchase Agreements—1.9%
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $3,500,484; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $3,570,000.		3,500,000		3,500,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $4,833,068; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $4,928,853.		4,832,209		4,832,209
NBC Global Finance, Ltd.
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $500,071; collateralized by various Common Stock with an aggregate market value of $556,606.		500,000		500,000
Repurchase Agreements—(Continued)
NBC Global Finance, Ltd.
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,500,498; collateralized by various Common Stock with an aggregate market value of $3,896,243.		3,500,000		3,500,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $800,114; collateralized by various Common Stock with an aggregate market value of $890,570.		800,000		800,000
Nomura Securities International, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $3,000,492; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 6.500%, maturity dates ranging from 02/15/19 - 08/15/48, and an aggregate market value of $3,060,000.		3,000,000		3,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $700,098; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $766,833.		700,000		700,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $1,172,543; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,284,312.		1,172,378		1,172,378
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $460,229; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $503,919.		460,000		460,000
				18,464,587
Time Deposit—0.1%
Royal Bank of Canada 2.420%, 01/02/19		1,000,000		1,000,000
Total Securities Lending Reinvestments (Cost $21,964,587)				21,964,621
Total Investments—102.1% (Cost $943,011,214)				979,556,097
Other assets and liabilities (net)—(2.1)%				(19,965,502	)
Net Assets—100.0%			$	959,590,595

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent 0.1% of net assets.
(b)	Non-income producing security.
(c)	Illiquid security. As of December 31, 2018, these securities represent 0.0% of net assets.
(d)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

(e)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $21,344,817 and the collateral received consisted of cash in the amount of $21,964,587. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(f)	All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2018, the market value of securities pledged was $2,351,200.
(g)	The rate shown represents current yield to maturity.
(h)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(i)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

Ten Largest Industries as of December 31, 2018 (Unaudited)	% of Net Assets
Banks		10.2
Pharmaceuticals		7.7
Oil, Gas & Consumable Fuels		5.4
Insurance		5.2
Chemicals		3.2
Automobiles		3.2
Food Products		3.2
Metals & Mining		2.8
Machinery		2.3
Diversified Telecommunication Services		2.3

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts		Notional Amount			Value/ Unrealized Depreciation
MSCI EAFE Index Mini Futures		03/15/19		140		USD	12,012,000	$	(204,691	)

Glossary of Abbreviations

Currencies

(USD)— United States Dollar

Index Abbreviations

(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Other Abbreviations

(ADR)—	American Depositary Receipt
(ETF)—	Exchange-Traded Fund
(REIT)—	Real Estate Investment Trust

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1			Level 2			Level 3			Total
Common Stocks
Australia	$	668,420		$	65,060,825		$	0		$	65,729,245
Austria		—			2,108,451			—			2,108,451
Belgium		—			8,645,258			—			8,645,258
Chile		—			266,948			—			266,948
China		336,624			1,287,965			—			1,624,589
Denmark		—			15,991,114			—			15,991,114
Finland		—			11,446,748			—			11,446,748
France		—			97,178,951			—			97,178,951
Germany		—			74,825,032			—			74,825,032
Hong Kong		348,876			32,325,313			—			32,674,189
Ireland		403,920			5,243,289			—			5,647,209
Israel		2,328,576			2,598,844			—			4,927,420
Italy		—			18,619,443			—			18,619,443
Japan		—			220,369,938			—			220,369,938
Luxembourg		—			2,714,784			—			2,714,784
Macau		—			969,762			—			969,762
Mexico		—			162,656			—			162,656
Netherlands		1,853,984			40,304,919			—			42,158,903
New Zealand		—			2,054,289			—			2,054,289
Norway		—			6,690,024			—			6,690,024
Portugal		—			1,444,989			0			1,444,989
Singapore		—			12,169,540			—			12,169,540
South Africa		—			1,987,099			—			1,987,099
Spain		—			27,533,682			—			27,533,682
Sweden		—			22,427,228			—			22,427,228
Switzerland		—			83,956,592			—			83,956,592
United Arab Emirates		—			264,379			—			264,379
United Kingdom		738,185			132,406,757			—			133,144,942
United States		57			4,971,264			—	��		4,971,321
Total Common Stocks		6,678,642			896,026,083			0			902,704,725
Total Mutual Fund*		34,680,200			—			—			34,680,200
Total Preferred Stocks*		—			4,961,983			—			4,961,983
Total Rights*		45,332			—			—			45,332
Total Short-Term Investments*		—			15,199,236			—			15,199,236
Total Securities Lending Reinvestments*		—			21,964,621			—			21,964,621
Total Investments	$	41,404,174		$	938,151,923		$	0		$	979,556,097
Collateral for Securities Loaned (Liability)	$	—		$	(21,964,587	)	$	—		$	(21,964,587	)
Futures Contracts
Futures Contracts (Unrealized Depreciation)	$	(204,691	)	$	—		$	—		$	(204,691	)

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2018 is not presented.

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	979,556,097
Cash		1,659,684
Cash denominated in foreign currencies (c)		57,196
Receivable for:
Investments sold		550,751
Fund shares sold		2,202,544
Dividends		3,402,510
Variation margin on futures contracts		5,611
Prepaid expenses		2,889
Total Assets		987,437,282
Liabilities
Collateral for securities loaned		21,964,587
Payables for:
Investments purchased		2,998,795
Fund shares redeemed		337,969
Accrued Expenses:
Management fees		245,302
Distribution and service fees		101,509
Deferred trustees’ fees		112,668
Other expenses		2,085,857
Total Liabilities		27,846,687
Net Assets	$	959,590,595
Net Assets Consist of:
Paid in surplus	$	902,128,703
Distributable earnings (Accumulated losses)		57,461,892
Net Assets	$	959,590,595
Net Assets
Class A	$	497,545,694
Class B		336,313,465
Class E		25,233,482
Class G		100,497,954
Capital Shares Outstanding*
Class A		40,913,147
Class B		28,241,888
Class E		2,086,386
Class G		8,495,824
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	12.16
Class B		11.91
Class E		12.09
Class G		11.83

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $943,011,214.
(b)	Includes securities loaned at value of $21,344,817.
(c)	Identified cost of cash denominated in foreign currencies was $57,014.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	33,259,482
Interest		247,999
Securities lending income		345,534
Total investment income		33,853,015
Expenses
Management fees		3,265,624
Administration fees		42,456
Custodian and accounting fees		312,123
Distribution and service fees—Class B		974,409
Distribution and service fees—Class E		43,724
Distribution and service fees—Class G		335,994
Audit and tax services		46,743
Legal		45,317
Trustees’ fees and expenses		33,733
Shareholder reporting		163,664
Insurance		7,102
Miscellaneous		264,521
Total expenses		5,535,410
Less management fee waiver		(33,993	)
Net expenses		5,501,417
Net Investment Income		28,351,598
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		12,333,553
Futures contracts		(1,896,353	)
Foreign currency transactions		(300,284	)
Net realized gain		10,136,916
Net change in unrealized depreciation on:
Investments		(193,417,298	)
Futures contracts		(327,149	)
Foreign currency transactions		(75,102	)
Net change in unrealized depreciation		(193,819,549	)
Net realized and unrealized loss		(183,682,633	)
Net Decrease in Net Assets From Operations	$	(155,331,035	)

(a) Net of foreign withholding taxes of $2,971,242.

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	28,351,598		$	27,181,125
Net realized gain		10,136,916			26,700,205
Net change in unrealized appreciation (depreciation)		(193,819,549	)		187,439,791
Increase (decrease) in net assets from operations		(155,331,035	)		241,321,121
From Distributions to Shareholders (a)
Class A		(16,673,785	)		(14,750,511	)
Class B		(10,835,559	)		(10,394,985	)
Class E		(823,070	)		(789,604	)
Class G		(3,102,863	)		(2,690,889	)
Total distributions		(31,435,277	)		(28,625,989	)
Increase (decrease) in net assets from capital share transactions		2,610,269			(86,644,632	)
Total increase (decrease) in net assets		(184,156,043	)		126,050,500
Net Assets
Beginning of period		1,143,746,638			1,017,696,138
End of period	$	959,590,595		$	1,143,746,638	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		3,939,329		$	54,805,801			2,238,430		$	29,784,034
Reinvestments		1,178,359			16,673,785			1,113,246			14,750,511
Redemptions		(3,946,676	)		(55,809,870	)		(5,285,048	)		(70,703,508	)
Net increase (decrease)		1,171,012		$	15,669,716			(1,933,372	)	$	(26,168,963	)
Class B
Sales		1,290,742		$	17,223,346			594,686		$	7,680,284
Reinvestments		780,660			10,835,559			799,615			10,394,985
Redemptions		(3,158,638	)		(43,643,536	)		(5,370,398	)		(70,878,217	)
Net decrease		(1,087,236	)	$	(15,584,631	)		(3,976,097	)	$	(52,802,948	)
Class E
Sales		143,756		$	1,979,666			43,936		$	577,766
Reinvestments		58,415			823,070			59,864			789,604
Redemptions		(278,661	)		(3,924,036	)		(427,733	)		(5,710,770	)
Net decrease		(76,490	)	$	(1,121,300	)		(323,933	)	$	(4,343,400	)
Class G
Sales		1,208,495		$	16,281,035			998,246		$	12,971,391
Reinvestments		225,008			3,102,863			208,273			2,690,889
Redemptions		(1,145,821	)		(15,737,414	)		(1,456,545	)		(18,991,601	)
Net increase (decrease)		287,682		$	3,646,484			(250,026	)	$	(3,329,321	)
Increase (decrease) derived from capital shares transactions				$	2,610,269					$	(86,644,632	)

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $20,649,206 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.55		$	11.97		$	12.14		$	12.67		$	13.83
Income (Loss) from Investment Operations
Net investment income (a)		0.38			0.35			0.34	(b)		0.34			0.45
Net realized and unrealized gain (loss)		(2.34	)		2.60			(0.20	)		(0.45	)		(1.26	)
Total income (loss) from investment operations		(1.96	)		2.95			0.14			(0.11	)		(0.81	)
Less Distributions
Distributions from net investment income		(0.43	)		(0.37	)		(0.31	)		(0.42	)		(0.35	)
Total distributions		(0.43	)		(0.37	)		(0.31	)		(0.42	)		(0.35	)
Net Asset Value, End of Period	$	12.16		$	14.55		$	11.97		$	12.14		$	12.67
Total Return (%) (c)		(13.91	)		24.90			1.34			(1.09	)		(6.00	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.38			0.37			0.38			0.40			0.40
Net ratio of expenses to average net assets (%) (d)		0.38			0.37			0.38			0.40			0.40
Ratio of net investment income to average net assets (%)		2.72			2.59			2.93	(b)		2.59			3.34
Portfolio turnover rate (%)		9			12			12			9			9
Net assets, end of period (in millions)	$	497.5		$	578.2		$	498.7		$	464.9		$	430.0
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.25		$	11.73		$	11.91		$	12.43		$	13.58
Income (Loss) from Investment Operations
Net investment income (a)		0.34			0.31			0.31	(b)		0.30			0.42
Net realized and unrealized gain (loss)		(2.29	)		2.54			(0.21	)		(0.43	)		(1.25	)
Total income (loss) from investment operations		(1.95	)		2.85			0.10			(0.13	)		(0.83	)
Less Distributions
Distributions from net investment income		(0.39	)		(0.33	)		(0.28	)		(0.39	)		(0.32	)
Total distributions		(0.39	)		(0.33	)		(0.28	)		(0.39	)		(0.32	)
Net Asset Value, End of Period	$	11.91		$	14.25		$	11.73		$	11.91		$	12.43
Total Return (%) (c)		(14.08	)		24.60			1.00			(1.28	)		(6.27	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.63			0.62			0.63			0.65			0.65
Net ratio of expenses to average net assets (%) (d)		0.63			0.62			0.63			0.65			0.65
Ratio of net investment income to average net assets (%)		2.49			2.36			2.69	(b)		2.37			3.14
Portfolio turnover rate (%)		9			12			12			9			9
Net assets, end of period (in millions)	$	336.3		$	418.0		$	390.7		$	394.0		$	405.3

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Financial Highlights

Selected per share data

	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.47		$	11.90		$	12.08		$	12.60		$	13.75
Income (Loss) from Investment Operations
Net investment income (a)		0.36			0.33			0.33	(b)		0.32			0.44
Net realized and unrealized gain (loss)		(2.34	)		2.59			(0.22	)		(0.44	)		(1.26	)
Total income (loss) from investment operations		(1.98	)		2.92			0.11			(0.12	)		(0.82	)
Less Distributions
Distributions from net investment income		(0.40	)��		(0.35	)		(0.29	)		(0.40	)		(0.33	)
Total distributions		(0.40	)		(0.35	)		(0.29	)		(0.40	)		(0.33	)
Net Asset Value, End of Period	$	12.09		$	14.47		$	11.90		$	12.08		$	12.60
Total Return (%) (c)		(14.06	)		24.78			1.08			(1.18	)		(6.11	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.53			0.52			0.53			0.55			0.55
Net ratio of expenses to average net assets (%) (d)		0.53			0.52			0.53			0.55			0.55
Ratio of net investment income to average net assets (%)		2.58			2.46			2.80	(b)		2.48			3.26
Portfolio turnover rate (%)		9			12			12			9			9
Net assets, end of period (in millions)	$	25.2		$	31.3		$	29.6		$	31.3		$	34.3
	Class G
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	14.16		$	11.66		$	11.84		$	12.36		$	13.51
Income (Loss) from Investment Operations
Net investment income (a)		0.33			0.30			0.30	(b)		0.29			0.41
Net realized and unrealized gain (loss)		(2.27	)		2.53			(0.20	)		(0.42	)		(1.25	)
Total income (loss) from investment operations		(1.94	)		2.83			0.10			(0.13	)		(0.84	)
Less Distributions
Distributions from net investment income		(0.39	)		(0.33	)		(0.28	)		(0.39	)		(0.31	)
Total distributions		(0.39	)		(0.33	)		(0.28	)		(0.39	)		(0.31	)
Net Asset Value, End of Period	$	11.83		$	14.16		$	11.66		$	11.84		$	12.36
Total Return (%) (c)		(14.12	)		24.54			0.97			(1.31	)		(6.33	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.68			0.67			0.68			0.70			0.70
Net ratio of expenses to average net assets (%) (d)		0.68			0.67			0.68			0.70			0.70
Ratio of net investment income to average net assets (%)		2.42			2.29			2.63	(b)		2.32			3.10
Portfolio turnover rate (%)		9			12			12			9			9
Net assets, end of period (in millions)	$	100.5		$	116.3		$	98.6		$	93.1		$	90.7

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.04% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife MSCI EAFE Index Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost

BHFTII-20

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-21

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $18,464,587. The value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(3,766,355	)	$	—	$	—	$	—	$	(3,766,355	)
Mutual Funds		(18,198,232	)		—		—		—		(18,198,232	)
Total	$	(21,964,587	)	$	—	$	—	$	—	$	(21,964,587	)
Total Borrowings	$	(21,964,587	)	$	—	$	—	$	—	$	(21,964,587	)
Gross amount of recognized liabilities for securities lending transactions										$	(21,964,587	)

BHFTII-22

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value
Equity	Unrealized depreciation on futures contracts (a)	$	204,691

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Equity
Futures contracts	$	(1,896,353	)
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Equity
Futures contracts	$	(327,149	)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Futures contracts long	$	7,008

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk: The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial

BHFTII-23

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk:The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$ 0	$	97,610,672	$	0	$	101,271,971

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.300% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2018 were $3,265,624.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Advisors, LLC (“MIA”) with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIA an investment subadvisory fee for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.050%	On the first $500 million
0.040%	Of the next $500 million
0.020%	On amounts over $1 billion

Fees earned by MIA with respect to the Portfolio for the year ended December 31, 2018 were $467,153.

BHFTII-24

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.005%	Over $500 million and under $1 billion
0.010%	Of the next $1 billion
0.015%	On amounts over $2 billion

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class E and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.15% of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	955,553,805
Gross unrealized appreciation		188,307,703
Gross unrealized depreciation		(164,297,083	)
Net unrealized appreciation (depreciation)	$	24,010,620

BHFTII-25

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$31,435,277	$	28,625,989	$	—	$	—	$	31,435,277	$	28,625,989

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$26,231,044	$	7,352,775	$	23,990,742	$	—	$	57,574,561

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

During the year ended December 31, 2018, the Portfolio utilized capital loss carryforwards of $3,109,329.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-26

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MetLife MSCI EAFE Index Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife MSCI EAFE Index Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife MSCI EAFE Index Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-27

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-28

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-29

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-30

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-31

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-32

Brighthouse Funds Trust II

MetLife MSCI EAFE Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MetLife MSCI EAFE Index Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board took into account that the Portfolio underperformed its benchmark, the MSCI EAFE Index, for theone-, three- and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median, and above the Expense Universe median andSub-advised Expense Universe median. The Board considered that the Portfolio’s total expenses (exclusive of12b-1 fees) were equal to the Expense Group median, below the Expense Universe median, and above theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-33

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Managed by MetLife Investment Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, E, and G shares of the MetLife Russell 2000 Index Portfolio returned-10.97%,-11.18%,-11.08%, and-11.20%, respectively. The Portfolio’s benchmark, the Russell 2000 Index¹, returned-11.01%.

MARKET ENVIRONMENT / CONDITIONS

Equity markets ended the period down with outperformance in the middle of the year bracketed by underperformance during the first and fourth quarters. The main concerns during the year were slowing global growth, political unrest in Europe, a more hawkish Federal Reserve (the “Fed”), and continued fears about a global trade war. Equity markets were impacted as the10-year Treasury yield reached its highest level since 2014, which was driven by a more hawkish Fed and higher than expected wage growth. Equity markets also feared the impact of President Trump’s plan to impose tariffs on steel and aluminum imports and Fed Chair Powell’s Congressional testimony during the first quarter where he hinted at the possibility of four rate hikes during the year. Other issues equity investors were concerned about included unrest in the Middle East, political uncertainty in Italy, and the U.S. withdrawal from the Iran nuclear deal. In the middle of the year, equity markets rallied as trade negotiations eased concerns of a global trade war and leaders of North and South Korea met for the first time since 2007. Equity markets also reacted favorably after Fed Chair Powell made dovish comments in the third quarter during the Jackson Hole symposium and progress was made with trade negotiations with the European Union and the North American Free Trade Agreement. Equity markets underperformed again towards the end of the year on concerns about a weakening global economy, the partial U.S. government shut-down, and continued uncertainty surrounding Brexit.

During the year, the Federal Open Market Committee (the “FOMC”) met eight times and raised the target for the Federal Funds Rate four times from a range of 1.25%—1.50% to a range of 2.25%—2.50%. The FOMC stated that the labor market had continued to strengthen, and that economic activity had been rising at a strong rate. The FOMC also stated that job gains had been strong, and the unemployment rate had remained low.

Only one of the eleven sectors comprising the Russell 2000 Index experienced a positive return for the year. Utilities (4.5% beginning weight in the benchmark), up 1.5%, was the best-performing sector. Energy (3.8% beginning weight), down 36.8%; Materials & Processing (7.5% beginning weight), down 27.1%; and Producer Durables (14.1% beginning weight), down 14.6%, were the worst-performing sectors.

The stocks with the largest positive impact on the Portfolio return for the year were Sarepta Therapeutics (sold on 6/22/2018), up 152.2%; Etsy (held throughout the entire year), up 132.6%; and Grubhub (sold on 6/22/2018), up 49.0%. The stocks with the largest negative impact were Clovis Oncology, down 73.6%; McDermott International, down 66.9%; and Dana, Inc., down 56.6% (all three were held throughout the entire year).

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio is managed utilizing a stratified sampling strategy versus the Russell 2000 Index. This strategy seeks to replicate the performance of the Index by owning a subset of Index constituents and neutralizing exposures across sectors. The Portfolio is periodically rebalanced for compositional changes in the Russell 2000 Index. Factors that impact tracking error include sampling, transaction costs, cash drag, securities lending activity, Net Asset Value rounding, contributions, and withdrawals.

Stacey Lituchy

Norman Hu

Mirsad Usejnoski

Portfolio Managers

MetLife Investment Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
MetLife Russell 2000 Index Portfolio
Class A		-10.97		4.48		11.90		—
Class B		-11.18		4.23		11.62		—
Class E		-11.08		4.34		11.74		—
Class G		-11.20		4.18		—		12.62
Russell 2000 Index		-11.01		4.41		11.97		—

¹ The Russell 2000 Index is an unmanaged measure of performance of the 2,000 smallest companies in the Russell 3000 Index.

² Inception dates of the Class A, Class B, Class E and Class G shares are 11/9/98, 1/2/01, 5/1/01 and 4/28/09, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
iShares Russell 2000 Index Fund		3.0
Integrated Device Technology, Inc.		0.3
Etsy, Inc.		0.3
Five Below, Inc.		0.3
Haemonetics Corp.		0.3
Ciena Corp.		0.3
Planet Fitness, Inc.- Class A		0.3
HubSpot, Inc.		0.3
IDACORP, Inc.		0.3
LivaNova plc		0.2

Top Sectors

	% of Net Assets
Financials		20.4
Health Care		15.0
Industrials		14.4
Information Technology		14.1
Consumer Discretionary		11.6
Real Estate		7.1
Utilities		3.7
Materials		3.6
Energy		3.3
Communication Services		3.2

BHFTII-2

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MetLife Russell 2000 Index Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.30	%	$	1,000.00	$	827.50	$	1.38
	Hypothetical*		0.30	%	$	1,000.00	$	1,023.69	$	1.53
Class B (a)	Actual		0.55	%	$	1,000.00	$	826.40	$	2.53
	Hypothetical*		0.55	%	$	1,000.00	$	1,022.43	$	2.80
Class E (a)	Actual		0.45	%	$	1,000.00	$	827.30	$	2.07
	Hypothetical*		0.45	%	$	1,000.00	$	1,022.94	$	2.29
Class G (a)	Actual		0.60	%	$	1,000.00	$	826.20	$	2.76
	Hypothetical*		0.60	%	$	1,000.00	$	1,022.18	$	3.06

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—96.2% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—1.2%
AAR Corp.		13,862	$	517,607
Aerojet Rocketdyne Holdings, Inc. (a) (b)		31,677		1,115,981
Aerovironment, Inc. (a) (b)		8,967		609,308
Astronics Corp. (a)		10,382		316,132
Axon Enterprise, Inc. (a)		25,220		1,103,375
Cubic Corp.		10,857		583,455
Ducommun, Inc. (a)		5,959		216,431
Engility Holdings, Inc. (a)		8,737		248,655
Esterline Technologies Corp. (a)		11,408		1,385,501
KEYW Holding Corp. (The) (a) (b)		23,342		156,158
Kratos Defense & Security Solutions, Inc. (a)		39,769		560,345
Maxar Technologies, Ltd.		25,232		301,775
Mercury Systems, Inc. (a)		19,716		932,370
Moog, Inc. - Class A		14,345		1,111,451
National Presto Industries, Inc.		2,572		300,718
Triumph Group, Inc. (b)		24,082		276,943
Vectrus, Inc. (a)		5,647		121,862
Wesco Aircraft Holdings, Inc. (a)		26,069		205,945
				10,064,012
Air Freight & Logistics—0.3%
Air Transport Services Group, Inc. (a)		27,538		628,142
Atlas Air Worldwide Holdings, Inc. (a)		10,224		431,351
Echo Global Logistics, Inc. (a)		13,053		265,367
Forward Air Corp.		12,974		711,624
HUB Group, Inc. - Class A (a)		15,117		560,387
				2,596,871
Airlines—0.5%
Allegiant Travel Co.		5,919		593,202
Hawaiian Holdings, Inc. (b)		22,400		591,584
SkyWest, Inc.		22,461		998,841
Spirit Airlines, Inc. (a)		29,877		1,730,476
				3,914,103
Auto Components—1.0%
American Axle & Manufacturing Holdings, Inc. (a)		51,196		568,276
Cooper Tire & Rubber Co. (b)		22,320		721,606
Cooper-Standard Holdings, Inc. (a)		7,342		456,085
Dana, Inc.		65,547		893,406
Dorman Products, Inc. (a) (b)		11,341		1,020,917
Fox Factory Holding Corp. (a)		15,112		889,643
Gentherm, Inc. (a)		15,174		606,657
LCI Industries		10,785		720,438
Modine Manufacturing Co. (a)		23,187		250,651
Motorcar Parts of America, Inc. (a) (b)		8,000		133,120
Standard Motor Products, Inc.		9,638		466,768
Stoneridge, Inc. (a)		13,705		337,828
Tenneco, Inc. - Class A		22,605		619,151
Tower International, Inc.		10,455		248,829
				7,933,375
Automobiles—0.0%
Winnebago Industries, Inc.		14,967		362,351

Security Description	Shares		Value
Banks—9.2%
1st Source Corp.		7,645	$	308,399
Access National Corp.		7,093		151,294
ACNB Corp.		3,451		135,452
Allegiance Bancshares, Inc. (a)		5,825		188,555
Amalgamated Bank		6,010		117,195
American National Bankshares, Inc.		4,311		126,355
Ameris Bancorp		18,334		580,638
Ames National Corp.		4,321		109,840
Arrow Financial Corp.		6,358		203,583
Atlantic Capital Bancshares, Inc. (a)		10,440		170,903
Banc of California, Inc.		18,620		247,832
BancFirst Corp.		8,433		420,807
Bancorp, Inc. (The) (a)		25,747		204,946
BancorpSouth Bank		40,565		1,060,369
Bank of Marin Bancorp		6,398		263,854
Bank of NT Butterfield & Son, Ltd. (The)		23,242		728,637
Banner Corp.		14,787		790,809
Bar Harbor Bankshares		7,342		164,681
Baycom Corp. (a)		5,323		122,908
Berkshire Hills Bancorp, Inc.		18,786		506,658
Blue Hills Bancorp, Inc.		9,156		195,389
Boston Private Financial Holdings, Inc.		40,232		425,252
Bridge Bancorp, Inc.		8,870		226,096
Brookline Bancorp, Inc.		36,642		506,392
Bryn Mawr Bank Corp.		9,382		322,741
Business First Bancshares, Inc.		5,338		129,340
Byline Bancorp, Inc. (a)		8,170		136,112
Cadence BanCorp		32,156		539,578
Cambridge Bancorp		1,469		122,294
Camden National Corp.		7,839		281,969
Capital City Bank Group, Inc.		5,769		133,899
Carolina Financial Corp.		8,963		265,215
Cathay General Bancorp (b)		34,405		1,153,600
CBTX, Inc.		8,948		263,071
CenterState Bank Corp.		38,953		819,571
Central Pacific Financial Corp.		11,636		283,337
Central Valley Community Bancorp		5,828		109,974
Century Bancorp, Inc. - Class A		1,458		98,750
Chemical Financial Corp.		30,603		1,120,376
Citizens & Northern Corp.		6,716		177,504
City Holding Co. (b)		7,242		489,487
Civista Bancshares, Inc.		6,893		120,076
CNB Financial Corp.		6,782		155,647
Codorus Valley Bancorp, Inc.		4,739		100,704
Columbia Banking System, Inc.		32,810		1,190,675
Community Bank System, Inc. (b)		22,304		1,300,323
Community Trust Bancorp, Inc.		7,150		283,212
ConnectOne Bancorp, Inc.		13,860		255,994
Customers Bancorp, Inc. (a)		13,560		246,792
CVB Financial Corp.		49,490		1,001,183
Eagle Bancorp, Inc. (a)		13,255		645,651
Enterprise Bancorp, Inc.		4,064		130,698
Enterprise Financial Services Corp.		10,782		405,727
Equity Bancshares, Inc. - Class A (a)		5,404		190,491
Farmers & Merchants Bancorp, Inc.		4,006		154,191
Farmers National Banc Corp.		13,414		170,894
FB Financial Corp.		6,411		224,513

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Banks—(Continued)
Fidelity Southern Corp.		10,827	$	281,719
Financial Institutions, Inc.		6,461		166,048
First BanCorp		94,227		810,352
First Bancorp		12,826		418,897
First Bancorp, Inc.		5,308		139,600
First Bancshares, Inc. (The)		6,100		184,525
First Busey Corp.		20,300		498,162
First Choice Bancorp		4,579		103,485
First Commonwealth Financial Corp.		45,936		554,907
First Community Bancshares, Inc.		8,470		266,636
First Financial Bancorp		41,209		977,477
First Financial Bankshares, Inc.		27,909		1,610,070
First Financial Corp.		5,203		208,900
First Foundation, Inc. (a) (b)		17,720		227,879
First Interstate BancSystem, Inc. - Class A		15,279		558,600
First Merchants Corp.		22,695		777,758
FirstMid-Illinois Bancshares, Inc.		5,809		185,423
First Midwest Bancorp, Inc.		46,471		920,591
First of Long Island Corp. (The)		9,924		197,984
Flushing Financial Corp.		13,422		288,976
Franklin Financial Network, Inc. (a) (b)		4,922		129,793
Fulton Financial Corp.		76,291		1,180,985
German American Bancorp, Inc.		10,138		281,532
Glacier Bancorp, Inc. (b)		36,365		1,440,781
Great Southern Bancorp, Inc.		4,991		229,736
Great Western Bancorp, Inc.		26,273		821,031
Green Bancorp, Inc.		11,285		193,425
Guaranty Bancorp		11,425		237,069
Guaranty Bancshares, Inc.		3,924		117,014
Hancock Whitney Corp.		36,710		1,272,002
Hanmi Financial Corp.		15,681		308,916
HarborOne Bancorp, Inc. (a)		7,489		119,000
Heartland Financial USA, Inc.		13,588		597,193
Heritage Commerce Corp.		17,854		202,464
Heritage Financial Corp.		15,777		468,892
Hilltop Holdings, Inc.		34,409		613,512
Home BancShares, Inc.		68,087		1,112,542
HomeTrust Bancshares, Inc.		8,531		223,342
Hope Bancorp, Inc.		53,525		634,807
Horizon Bancorp		17,556		277,034
Iberiabank Corp.		24,314		1,562,904
Independent Bank Corp.		11,863		249,360
Independent Bank Corp./Rockland Trust		11,523		810,182
Independent Bank Group, Inc.		9,806		448,821
International Bancshares Corp.		23,225		798,940
Investar Holding Corp.		4,526		112,245
Investors Bancorp, Inc.		105,579		1,098,022
Lakeland Bancorp, Inc.		19,901		294,734
Lakeland Financial Corp.		11,384		457,181
LegacyTexas Financial Group, Inc. (b)		21,060		675,815
Live Oak Bancshares, Inc. (b)		10,534		156,009
Macatawa Bank Corp.		14,416		138,682
MB Financial, Inc.		35,622		1,411,700
Mercantile Bank Corp.		8,647		244,364
Metropolitan Bank Holding Corp. (a)		3,277		101,095
Midland States Bancorp, Inc.		10,034		224,160
MidWestOne Financial Group, Inc.		5,585		138,676

Security Description	Shares		Value
Banks—(Continued)
National Bank Holdings Corp. - Class A		12,889	$	397,883
National Bankshares, Inc.		3,487		127,031
National Commerce Corp. (a)		7,109		255,924
NBT Bancorp, Inc. (b)		17,543		606,812
Nicolet Bankshares, Inc. (a) (b)		4,410		215,208
Northrim BanCorp, Inc.		3,529		115,998
OFG Bancorp		19,884		327,291
Old Line Bancshares, Inc.		7,597		199,953
Old National Bancorp		63,652		980,241
Old Second Bancorp, Inc.		14,296		185,848
Opus Bank		8,631		169,081
Origin Bancorp, Inc.		6,937		236,413
Pacific Premier Bancorp, Inc. (a)		21,020		536,430
Park National Corp.		5,741		487,698
Peapack Gladstone Financial Corp.		8,311		209,271
People’s Utah Bancorp		7,011		211,382
Peoples Bancorp, Inc.		8,443		254,134
Peoples Financial Services Corp.		3,673		161,832
Preferred Bank		6,573		284,940
QCR Holdings, Inc.		5,811		186,475
RBB Bancorp		6,720		118,070
Reliant Bancorp, Inc. (b)		5,179		119,324
Renasant Corp.		22,158		668,728
Republic Bancorp, Inc. - Class A		5,421		209,901
Republic First Bancorp, Inc. (a)		22,031		131,525
S&T Bancorp, Inc. (b)		15,660		592,574
Sandy Spring Bancorp, Inc.		16,080		503,947
Seacoast Banking Corp. of Florida (a) (b)		21,315		554,616
ServisFirst Bancshares, Inc. (b)		20,928		666,975
Sierra Bancorp		5,841		140,359
Simmons First National Corp. - Class A		41,478		1,000,864
SmartFinancial, Inc. (a)		5,821		106,350
South State Corp.		15,302		917,355
Southern First Bancshares, Inc. (a)		3,419		109,647
Southern National Bancorp of Virginia, Inc.		10,799		142,763
Southside Bancshares, Inc.		15,530		493,078
State Bank Financial Corp.		16,379		353,623
Stock Yards Bancorp, Inc.		10,633		348,762
Summit Financial Group, Inc.		5,705		110,164
Tompkins Financial Corp.		6,912		518,469
Towne Bank		30,317		726,092
TriCo Bancshares		11,734		396,492
TriState Capital Holdings, Inc. (a)		11,422		222,272
Triumph Bancorp, Inc. (a)		11,267		334,630
Trustmark Corp. (b)		28,210		802,010
UMB Financial Corp.		19,210		1,171,234
Union Bankshares Corp. (b)		30,030		847,747
United Bankshares, Inc. (b)		43,338		1,348,245
United Community Banks, Inc.		34,521		740,821
Univest Corp. of Pennsylvania		12,133		261,709
Valley National Bancorp		137,865		1,224,241
Veritex Holdings, Inc. (a) (b)		11,061		236,484
Washington Trust Bancorp, Inc.		5,960		283,279
WesBanco, Inc.		23,770		872,121
West Bancorp, Inc.		8,036		153,407
Westamerica Bancorp (b)		11,738		653,572
				73,973,677

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Beverages—0.3%
Boston Beer Co., Inc. (The) - Class A (a)		3,688	$	888,218
Coca-Cola Bottling Co. Consolidated		1,932		342,698
MGP Ingredients, Inc. (b)		6,119		349,089
National Beverage Corp. (b)		4,782		343,204
Primo Water Corp. (a) (b)		15,449		216,441
				2,139,650
Biotechnology—5.9%
Abeona Therapeutics, Inc. (a)		12,572		89,764
ACADIA Pharmaceuticals, Inc. (a) (b)		45,819		740,893
Acceleron Pharma, Inc. (a) (b)		17,406		758,031
Acorda Therapeutics, Inc. (a) (b)		20,455		318,689
Agenus, Inc. (a)		46,040		109,575
Aimmune Therapeutics, Inc. (a) (b)		20,346		486,676
Akebia Therapeutics, Inc. (a) (b)		40,608		224,562
Albireo Pharma, Inc. (a)		4,713		115,610
Alder Biopharmaceuticals, Inc. (a) (b)		25,046		256,722
Allakos, Inc. (a) (b)		4,042		211,275
Allogene Therapeutics, Inc. (a) (b)		12,636		340,287
AMAG Pharmaceuticals, Inc. (a)		16,034		243,556
Amicus Therapeutics, Inc. (a) (b)		85,724		821,236
AnaptysBio, Inc. (a)		9,482		604,857
Apellis Pharmaceuticals, Inc. (a)		17,298		228,161
Aptinyx, Inc. (a)		9,990		165,235
Arcus Biosciences, Inc. (a)		15,645		168,497
Arena Pharmaceuticals, Inc. (a)		22,490		875,986
Arqule, Inc. (a)		43,816		121,370
Array BioPharma, Inc. (a) (b)		91,194		1,299,514
Arrowhead Pharmaceuticals, Inc. (a) (b)		40,960		508,723
Atara Biotherapeutics, Inc. (a)		18,837		654,397
Athenex, Inc. (a) (b)		20,171		255,970
Audentes Therapeutics, Inc. (a)		17,143		365,489
Avid Bioservices, Inc. (a)		26,181		107,342
BioCryst Pharmaceuticals, Inc. (a) (b)		50,588		408,245
Biohaven Pharmaceutical Holding Co., Ltd. (a)		12,167		449,936
BioSpecifics Technologies Corp. (a)		3,035		183,921
Blueprint Medicines Corp. (a) (b)		17,806		959,921
Cara Therapeutics, Inc. (a)		15,682		203,866
CareDx, Inc. (a)		16,080		404,251
CASI Pharmaceuticals, Inc. (a) (b)		26,316		105,790
Catalyst Pharmaceuticals, Inc. (a)		49,243		94,547
Cellular Biomedicine Group, Inc. (a)		6,244		110,269
ChemoCentryx, Inc. (a)		12,392		135,197
Clovis Oncology, Inc. (a) (b)		21,967		394,527
Coherus Biosciences, Inc. (a)		22,472		203,372
Concert Pharmaceuticals, Inc. (a)		8,973		112,611
Corbus Pharmaceuticals Holdings, Inc. (a) (b)		23,089		134,840
Cytokinetics, Inc. (a)		18,716		118,285
CytomX Therapeutics, Inc. (a)		18,290		276,179
Denali Therapeutics, Inc. (a) (b)		20,915		432,104
Dicerna Pharmaceuticals, Inc. (a)		21,711		232,091
Dynavax Technologies Corp. (a) (b)		28,690		262,514
Eagle Pharmaceuticals, Inc. (a) (b)		4,988		200,967
Editas Medicine, Inc. (a)		21,164		481,481
Emergent BioSolutions, Inc. (a)		20,011		1,186,252
Enanta Pharmaceuticals, Inc. (a) (b)		7,598		538,166

Security Description	Shares		Value
Biotechnology—(Continued)
Epizyme, Inc. (a)		25,075	$	154,462
Esperion Therapeutics, Inc. (a) (b)		10,901		501,446
Fate Therapeutics, Inc. (a) (b)		27,883		357,739
FibroGen, Inc. (a)		33,355		1,543,669
Five Prime Therapeutics, Inc. (a) (b)		19,957		185,600
Flexion Therapeutics, Inc. (a) (b)		15,518		175,664
G1 Therapeutics, Inc. (a)		9,655		184,893
Genomic Health, Inc. (a)		8,834		568,998
Global Blood Therapeutics, Inc. (a) (b)		23,097		948,132
GlycoMimetics, Inc. (a)		16,635		157,533
Halozyme Therapeutics, Inc. (a)		55,733		815,374
Heron Therapeutics, Inc. (a) (b)		29,366		761,754
Homology Medicines, Inc. (a)		8,430		188,495
ImmunoGen, Inc. (a)		59,746		286,781
Immunomedics, Inc. (a) (b)		65,050		928,264
Inovio Pharmaceuticals, Inc. (a)		36,297		145,188
Insmed, Inc. (a) (b)		33,233		436,017
Intellia Therapeutics, Inc. (a) (b)		15,741		214,865
Intercept Pharmaceuticals, Inc. (a)		9,678		975,446
Intrexon Corp. (a) (b)		32,766		214,290
Invitae Corp. (a)		31,538		348,810
Iovance Biotherapeutics, Inc. (a)		48,312		427,561
Ironwood Pharmaceuticals, Inc. (a)		63,682		659,746
Kadmon Holdings, Inc. (a) (b)		50,200		104,416
Karyopharm Therapeutics, Inc. (a) (b)		23,047		215,950
Kindred Biosciences, Inc. (a)		13,711		150,135
Kura Oncology, Inc. (a)		13,652		191,674
La Jolla Pharmaceutical Co. (a) (b)		12,259		115,602
Lexicon Pharmaceuticals, Inc. (a) (b)		23,843		158,318
Ligand Pharmaceuticals, Inc. (a) (b)		9,331		1,266,217
Loxo Oncology, Inc. (a)		12,113		1,696,668
MacroGenics, Inc. (a)		18,661		236,995
Madrigal Pharmaceuticals, Inc. (a) (b)		3,123		352,025
MediciNova, Inc. (a) (b)		18,638		152,272
Minerva Neurosciences, Inc. (a)		16,304		109,889
Mirati Therapeutics, Inc. (a)		8,594		364,557
Momenta Pharmaceuticals, Inc. (a)		35,673		393,830
Myriad Genetics, Inc. (a) (b)		29,763		865,210
Natera, Inc. (a)		13,813		192,829
Novavax, Inc. (a) (b)		181,370		333,721
Opko Health, Inc. (a) (b)		146,687		441,528
PDL BioPharma, Inc. (a)		76,001		220,403
Portola Pharmaceuticals, Inc. (a) (b)		29,932		584,273
Progenics Pharmaceuticals, Inc. (a)		32,263		135,505
Prothena Corp. plc (a)		18,324		188,737
PTC Therapeutics, Inc. (a) (b)		21,050		722,436
Puma Biotechnology, Inc. (a) (b)		13,791		280,647
Ra Pharmaceuticals, Inc. (a)		7,515		136,773
Radius Health, Inc. (a)		17,562		289,597
REGENXBIO, Inc. (a)		14,093		591,201
Repligen Corp. (a) (b)		17,598		928,119
Retrophin, Inc. (a)		18,842		426,394
Rhythm Pharmaceuticals, Inc. (a) (b)		6,192		166,441
Rigel Pharmaceuticals, Inc. (a)		68,148		156,740
Rocket Pharmaceuticals, Inc. (a) (b)		10,482		155,343
Rubius Therapeutics, Inc. (a) (b)		10,781		173,358
Sangamo Therapeutics, Inc. (a) (b)		47,157		541,362

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Biotechnology—(Continued)
Solid Biosciences, Inc. (a)		5,744	$	153,939
Sorrento Therapeutics, Inc. (a) (b)		42,779		102,670
Spark Therapeutics, Inc. (a) (b)		14,454		565,730
Spectrum Pharmaceuticals, Inc. (a)		45,835		401,056
Stemline Therapeutics, Inc. (a)		11,947		113,497
TG Therapeutics, Inc. (a) (b)		28,284		115,964
Tyme Technologies, Inc. (a) (b)		51,546		190,205
Ultragenyx Pharmaceutical, Inc. (a)		20,227		879,470
UNITY Biotechnology, Inc. (a) (b)		12,061		196,112
Vanda Pharmaceuticals, Inc. (a)		24,336		635,900
Veracyte, Inc. (a)		14,557		183,127
Verastem, Inc. (a) (b)		26,692		89,685
Vericel Corp. (a)		18,632		324,197
Viking Therapeutics, Inc. (a) (b)		28,602		218,805
Voyager Therapeutics, Inc. (a)		10,649		100,101
Xencor, Inc. (a)		21,420		774,547
ZIOPHARM Oncology, Inc. (a) (b)		64,378		120,387
				47,087,033
Building Products—1.2%
AAON, Inc. (b)		19,095		669,471
Advanced Drainage Systems, Inc.		16,264		394,402
American Woodmark Corp. (a)		6,699		373,000
Apogee Enterprises, Inc.		11,475		342,529
Armstrong Flooring, Inc. (a)		11,681		138,303
Builders FirstSource, Inc. (a)		50,475		550,682
Caesarstone, Ltd.		11,687		158,709
Continental Building Products, Inc. (a)		17,313		440,616
CSW Industrials, Inc. (a)		7,377		356,678
Gibraltar Industries, Inc. (a) (b)		14,856		528,725
Griffon Corp.		14,438		150,877
Insteel Industries, Inc.		9,004		218,617
JELD-WEN Holding, Inc. (a) (b)		31,537		448,141
Masonite International Corp. (a)		12,167		545,447
NCI Building Systems, Inc. (a)		19,586		141,999
Patrick Industries, Inc. (a)		10,680		316,235
PGT Innovations, Inc. (a)		22,494		356,530
Quanex Building Products Corp.		17,697		240,502
Simpson Manufacturing Co., Inc. (b)		17,526		948,682
Trex Co., Inc. (a)		25,565		1,517,538
Universal Forest Products, Inc.		25,733		668,029
				9,505,712
Capital Markets—1.2%
Arlington Asset Investment Corp. - Class A (b)		10,056		72,805
Artisan Partners Asset Management, Inc. - Class A		21,101		466,543
B. Riley Financial, Inc. (b)		10,620		150,804
Blucora, Inc. (a)		20,338		541,804
BrightSphere Investment Group plc		35,717		381,458
Cohen & Steers, Inc. (b)		9,693		332,664
Cowen Group, Inc. (a) (b)		13,196		176,035
Diamond Hill Investment Group, Inc.		1,546		231,050
Donnelley Financial Solutions, Inc. (a)		16,100		225,883
Federated Investors, Inc. - Class B (b)		41,142		1,092,320
Focus Financial Partners, Inc. - Class A (a)		7,357		193,710
Greenhill & Co., Inc.		10,011		244,268
Capital Markets—(Continued)
Hamilton Lane, Inc. - Class A		7,658		283,346
Houlihan Lokey, Inc.		15,059		554,171
International FCStone, Inc. (a)		7,668		280,495
Investment Technology Group, Inc.		14,591		441,232
Ladenburg Thalmann Financial Services, Inc.		50,140		116,826
Moelis & Co. - Class A		20,136		692,276
Oppenheimer Holdings, Inc. - Class A		4,998		127,699
Piper Jaffray Cos.		7,063		465,028
PJT Partners, Inc. - Class A		9,330		361,631
Stifel Financial Corp.		29,695		1,229,967
Virtus Investment Partners, Inc.		3,239		257,274
Waddell & Reed Financial, Inc. - Class A (b)		33,654		608,464
Westwood Holdings Group, Inc.		3,235		109,990
WisdomTree Investments, Inc.		53,688		357,025
				9,994,768
Chemicals—1.8%
AdvanSix, Inc. (a)		14,472		352,248
American Vanguard Corp.		14,887		226,133
Balchem Corp.		13,712		1,074,335
Chase Corp.		3,533		353,477
Ferro Corp. (a)		38,898		609,921
FutureFuel Corp.		10,195		161,693
GCP Applied Technologies, Inc. (a)		29,565		725,821
Hawkins, Inc.		4,778		195,659
HB Fuller Co.		21,308		909,212
Ingevity Corp. (a)		18,263		1,528,430
Innophos Holdings, Inc.		9,207		225,848
Innospec, Inc.		9,939		613,833
Intrepid Potash, Inc. (a)		46,261		120,279
Koppers Holdings, Inc. (a)		10,265		174,916
Kraton Corp. (a)		14,021		306,219
Kronos Worldwide, Inc.		11,199		129,012
Livent Corp. (a)		16,565		228,597
Minerals Technologies, Inc.		14,525		745,713
OMNOVA Solutions, Inc. (a)		21,500		157,595
PolyOne Corp.		34,248		979,493
PQ Group Holdings, Inc. (a)		14,392		213,145
Quaker Chemical Corp.		5,838		1,037,471
Rayonier Advanced Materials, Inc. (b)		22,944		244,354
Sensient Technologies Corp. (b)		18,001		1,005,356
Stepan Co.		9,222		682,428
Tredegar Corp.		13,367		212,001
Trinseo S.A.		17,985		823,353
Tronox, Ltd. - Class A		43,198		336,080
				14,372,622
Commercial Services & Supplies—2.6%
ABM Industries, Inc. (b)		27,637		887,424
ACCO Brands Corp.		48,975		332,050
Advanced Disposal Services, Inc. (a)		33,294		797,058
Brady Corp. - Class A		21,723		944,082
BrightView Holdings, Inc. (a)		8,836		90,216
Brink’s Co. (The)		21,381		1,382,282
Casella Waste Systems, Inc. - Class A (a)		16,372		466,438
Ceco Environmental Corp. (a)		14,832		100,116

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Commercial Services & Supplies—(Continued)
Cimpress NV (a)		9,290	$	960,772
Covanta Holding Corp.		53,904		723,392
Deluxe Corp.		19,398		745,659
Ennis, Inc. (b)		14,123		271,868
Essendant, Inc.		18,301		230,227
Healthcare Services Group, Inc. (b)		32,315		1,298,417
Heritage-Crystal Clean, Inc. (a)		7,474		171,977
Herman Miller, Inc.		27,251		824,343
HNI Corp.		18,317		648,971
Interface, Inc.		27,071		385,762
Kimball International, Inc. - Class B		16,738		237,512
Knoll, Inc.		23,781		391,911
LSC Communications, Inc.		16,124		112,868
Matthews International Corp. - Class A		14,349		582,856
McGrath RentCorp		10,515		541,312
Mobile Mini, Inc.		20,245		642,779
MSA Safety, Inc.		14,519		1,368,706
Multi-Color Corp.		6,168		216,435
Pitney Bowes, Inc. (b)		83,241		491,954
Quad/Graphics, Inc. (b)		13,076		161,096
RR Donnelley & Sons Co.		33,165		131,333
SP Plus Corp. (a)		10,567		312,149
Steelcase, Inc. - Class A		39,276		582,463
Team, Inc. (a) (b)		14,183		207,781
Tetra Tech, Inc. (c)		24,133		1,249,365
U.S. Ecology, Inc.		10,067		634,020
UniFirst Corp.		6,349		908,351
Viad Corp.		8,932		447,404
VSE Corp.		4,190		125,323
				20,606,672
Communications Equipment—1.6%
Acacia Communications, Inc. (a)		12,769		485,222
ADTRAN, Inc.		24,190		259,801
Applied Optoelectronics, Inc. (a) (b)		8,622		133,037
CalAmp Corp. (a)		14,239		185,249
Calix, Inc. (a)		21,486		209,489
Casa Systems, Inc. (a)		12,603		165,477
Ciena Corp. (a)		61,746		2,093,807
Comtech Telecommunications Corp.		11,475		279,302
Digi International, Inc. (a)		12,500		126,125
Extreme Networks, Inc. (a)		50,414		307,525
Finisar Corp. (a)		52,901		1,142,662
Harmonic, Inc. (a)		38,803		183,150
Infinera Corp. (a) (b)		66,643		265,906
InterDigital, Inc.		14,704		976,787
Lumentum Holdings, Inc. (a)		31,637		1,329,070
NETGEAR, Inc. (a) (b)		13,343		694,236
NetScout Systems, Inc. (a)		32,759		774,095
Plantronics, Inc.		14,059		465,353
Quantenna Communications, Inc. (a)		15,870		227,735
Ribbon Communications, Inc. (a)		25,862		124,655
ViaSat, Inc. (a) (b)		24,578		1,448,873
Viavi Solutions, Inc. (a)		100,089		1,005,894
				12,883,450
Construction & Engineering—1.0%
Aegion Corp. (a) (b)		15,075		246,024
Ameresco, Inc. - Class A (a)		9,620		135,642
Argan, Inc.		6,140		232,338
Comfort Systems USA, Inc.		16,446		718,361
Dycom Industries, Inc. (a) (b)		13,476		728,243
EMCOR Group, Inc. (b)		25,321		1,511,410
Granite Construction, Inc. (b)		19,793		797,262
Great Lakes Dredge & Dock Corp. (a)		27,775		183,870
KBR, Inc.		62,037		941,722
MasTec, Inc. (a) (b)		26,785		1,086,400
MYR Group, Inc. (a)		6,874		193,641
Northwest Pipe Co. (a)		4,538		105,690
NV5 Global, Inc. (a) (b)		3,969		240,323
Primoris Services Corp.		17,845		341,375
Sterling Construction Co., Inc. (a)		13,246		144,249
Tutor Perini Corp. (a) (b)		19,192		306,496
Willscot Corp. (a)		14,553		137,089
				8,050,135
Construction Materials—0.1%
Summit Materials, Inc. - Class A (a) (b)		51,305		636,182
U.S. Concrete, Inc. (a) (b)		7,217		254,616
				890,798
Consumer Finance—0.7%
Encore Capital Group, Inc. (a) (b)		11,469		269,522
Enova International, Inc. (a)		15,391		299,509
EZCORP, Inc. - Class A (a) (b)		25,543		197,447
FirstCash, Inc.		19,348		1,399,828
Green Dot Corp. - Class A (a)		21,516		1,710,952
LendingClub Corp. (a)		142,833		375,651
Nelnet, Inc. - Class A		9,125		477,602
PRA Group, Inc. (a) (b)		19,388		472,486
Regional Management Corp. (a)		5,496		132,179
World Acceptance Corp. (a)		2,848		291,236
				5,626,412
Containers & Packaging—0.1%
Greif, Inc. - Class A		12,112		449,476
Greif, Inc. - Class B		2,277		101,099
Myers Industries, Inc.		14,676		221,754
UFP Technologies, Inc. (a)		3,172		95,287
				867,616
Distributors—0.1%
Core-Mark Holding Co., Inc.		21,704		504,618
Diversified Consumer Services—0.9%
Adtalem Global Education, Inc. (a)		25,502		1,206,755
American Public Education, Inc. (a)		6,406		182,315
Career Education Corp. (a)		31,150		355,733
Carriage Services, Inc.		7,506		116,343
Chegg, Inc. (a)		48,634		1,382,178
Houghton Mifflin Harcourt Co. (a)		46,134		408,747
K12, Inc. (a)		17,337		429,784

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Diversified Consumer Services—(Continued)
Laureate Education, Inc. - Class A (a)		41,832	$	637,520
Regis Corp. (a)		18,180		308,151
Sotheby’s (a)		15,890		631,469
Strategic Education, Inc.		9,106		1,032,802
Weight Watchers International, Inc. (a)		17,564		677,092
				7,368,889
Diversified Financial Services—0.2%
Banco Latinoamericano de Comercio Exterior S.A. - Class E		14,005		242,287
Cannae Holdings, Inc. (a)		30,326		519,181
FGL Holdings (a)		61,920		412,387
On Deck Capital, Inc. (a)		25,436		150,072
				1,323,927
Diversified Telecommunication Services—0.5%
ATN International, Inc.		4,754		340,054
Cincinnati Bell, Inc. (a) (b)		19,517		151,842
Cogent Communications Holdings, Inc.		17,728		801,483
Consolidated Communications Holdings, Inc. (b)		32,698		323,056
Frontier Communications Corp. (b)		47,610		113,312
Intelsat S.A. (a)		23,051		493,061
Iridium Communications, Inc. (a)		44,054		812,796
Ooma, Inc. (a)		9,215		127,904
ORBCOMM, Inc. (a) (b)		31,662		261,528
pdvWireless, Inc. (a)		4,481		167,545
Vonage Holdings Corp. (a)		92,718		809,428
				4,402,009
Electric Utilities—1.2%
ALLETE, Inc.		22,048		1,680,499
El Paso Electric Co.		17,076		856,020
IDACORP, Inc.		21,685		2,018,006
MGE Energy, Inc.		15,960		956,962
Otter Tail Corp.		18,035		895,257
PNM Resources, Inc.		34,438		1,415,057
Portland General Electric Co.		38,292		1,755,688
				9,577,489
Electrical Equipment—0.7%
Allied Motion Technologies, Inc.		3,283		146,717
Atkore International Group, Inc. (a)		18,445		365,949
AZZ, Inc.		10,507		424,062
Encore Wire Corp.		9,729		488,201
EnerSys		17,852		1,385,494
Enphase Energy, Inc. (a) (b)		41,498		196,286
Generac Holdings, Inc. (a)		26,660		1,325,002
Plug Power, Inc. (a) (b)		104,473		129,547
Powell Industries, Inc.		4,404		110,144
Sunrun, Inc. (a) (b)		43,801		476,993
Thermon Group Holdings, Inc. (a)		15,847		321,377
TPI Composites, Inc. (a) (b)		7,332		180,221
Vicor Corp. (a)		7,027		265,550
				5,815,543
Electronic Equipment, Instruments & Components—2.4%
Anixter International, Inc. (a)		12,098		657,042
AVX Corp.		21,871		333,533
Badger Meter, Inc.		12,590		619,554
Belden, Inc. (b)		17,022		711,009
Benchmark Electronics, Inc.		20,690		438,214
Control4 Corp. (a) (b)		10,604		186,630
CTS Corp.		15,701		406,499
Daktronics, Inc.		17,820		131,868
Electro Scientific Industries, Inc. (a)		13,300		398,468
ePlus, Inc. (a)		6,246		444,528
Fabrinet (a)		14,928		765,956
FARO Technologies, Inc. (a)		7,841		318,658
Fitbit, Inc. - Class A (a) (b)		94,378		469,059
II-VI, Inc. (a)		28,216		915,891
Insight Enterprises, Inc. (a) (c)		15,396		627,387
Itron, Inc. (a)		14,816		700,649
KEMET Corp.		25,798		452,497
Kimball Electronics, Inc. (a)		14,109		218,548
Knowles Corp. (a) (b)		40,362		537,218
Mesa Laboratories, Inc.		1,474		307,167
Methode Electronics, Inc.		15,351		357,525
MTS Systems Corp.		7,482		300,253
nLight, Inc. (a)		10,315		183,401
Novanta, Inc. (a)		13,765		867,195
OSI Systems, Inc. (a)		7,093		519,917
PAR Technology Corp. (a)		5,391		117,254
Park Electrochemical Corp. (b)		10,569		190,982
PC Connection, Inc.		5,366		159,531
Plexus Corp. (a) (c)		13,647		697,089
Rogers Corp. (a)		8,166		808,924
Sanmina Corp. (a)		28,234		679,310
ScanSource, Inc. (a)		12,162		418,130
SYNNEX Corp.		18,075		1,461,183
Tech Data Corp. (a) (b)		16,409		1,342,420
TTM Technologies, Inc. (a)		43,439		422,661
Vishay Intertechnology, Inc. (b)		56,238		1,012,846
Vishay Precision Group, Inc. (a)		5,267		159,221
				19,338,217
Energy Equipment & Services—1.1%
Archrock, Inc.		54,537		408,482
C&J Energy Services, Inc. (a)		30,083		406,121
Cactus, Inc. - Class A (a)		17,081		468,190
Diamond Offshore Drilling, Inc. (a) (b)		27,291		257,627
Dril-Quip, Inc. (a)		15,999		480,450
Exterran Corp. (a)		14,849		262,827
Forum Energy Technologies, Inc. (a)		38,569		159,290
Frank’s International NV (a)		36,054		188,202
FTS International, Inc. (a)		16,194		115,139
Helix Energy Solutions Group, Inc. (a) (b)		67,569		365,548
Keane Group, Inc. (a)		25,842		211,388
KLX Energy Services Holdings, Inc. (a)		9,171		215,060
Liberty Oilfield Services, Inc. - Class A (b)		20,373		263,830
Mammoth Energy Services, Inc.		6,277		112,861
Matrix Service Co. (a)		14,196		254,676
McDermott International, Inc. (a)		78,718		514,816

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Energy Equipment & Services—(Continued)
Natural Gas Services Group, Inc. (a)		6,643	$	109,211
Newpark Resources, Inc. (a)		41,815		287,269
Nine Energy Service, Inc. (a)		7,202		162,333
Noble Corp. plc (a) (b)		121,320		317,858
Oceaneering International, Inc. (a)		45,596		551,712
Oil States International, Inc. (a) (b)		27,605		394,199
ProPetro Holding Corp. (a)		33,439		411,969
Rowan Cos. plc - Class A (a) (b)		56,769		476,292
SEACOR Holdings, Inc. (a)		7,977		295,149
SEACOR Marine Holdings, Inc. (a)		8,966		105,440
Select Energy Services, Inc. - Class A (a)		21,969		138,844
Solaris Oilfield Infrastructure, Inc. - Class A (b)		13,032		157,557
Superior Energy Services, Inc. (a)		73,574		246,473
Tidewater, Inc. (a)		11,300		216,169
U.S. Silica Holdings, Inc. (b)		34,136		347,505
Unit Corp. (a)		24,655		352,073
				9,254,560
Entertainment—0.6%
AMC Entertainment Holdings, Inc. - Class A (b)		25,675		315,289
Eros International plc (a)		13,360		110,754
Glu Mobile, Inc. (a)		50,565		408,060
IMAX Corp. (a)		23,016		432,931
Liberty Braves Group - Class A (a)		5,080		126,695
Liberty Braves Group - Class C (a)		16,010		398,489
Marcus Corp. (The)		9,550		377,225
Pandora Media, Inc. (a)		113,159		915,456
Reading International, Inc. - Class A (a)		8,504		123,648
Rosetta Stone, Inc. (a)		9,843		161,425
World Wrestling Entertainment, Inc. - Class A		19,301		1,442,171
				4,812,143
Equity Real Estate Investment Trusts—6.5%
Acadia Realty Trust		34,500		819,720
Agree Realty Corp.		14,748		871,902
Alexander & Baldwin, Inc.		29,617		544,360
Alexander’s, Inc.		1,029		313,577
American Assets Trust, Inc.		16,370		657,583
Americold Realty Trust		38,305		978,310
Armada Hoffler Properties, Inc.		19,662		276,448
Ashford Hospitality Trust, Inc.		36,619		146,476
Bluerock Residential Growth REIT, Inc.		11,894		107,284
Braemar Hotels & Resorts, Inc.		14,521		129,672
CareTrust REIT, Inc.		36,768		678,737
CatchMark Timber Trust, Inc. - Class A		23,620		167,702
CBL & Associates Properties, Inc. (b)		78,126		150,002
Cedar Realty Trust, Inc.		37,954		119,176
Chatham Lodging Trust		19,109		337,847
Chesapeake Lodging Trust		24,761		602,930
City Office REIT, Inc.		14,820		151,905
Community Healthcare Trust, Inc.		6,825		196,765
CoreCivic, Inc.		50,114		893,533
CorEnergy Infrastructure Trust, Inc. (b)		5,980		197,818
Corepoint Lodging, Inc.		18,376		225,106
Cousins Properties, Inc.		183,442		1,449,192
DiamondRock Hospitality Co.		92,371		838,729
Equity Real Estate Investment Trusts—(Continued)
Easterly Government Properties, Inc. (b)		27,307		428,174
EastGroup Properties, Inc.		15,737		1,443,555
First Industrial Realty Trust, Inc.		53,382		1,540,604
Four Corners Property Trust, Inc.		29,818		781,232
Franklin Street Properties Corp.		48,177		300,143
Front Yard Residential Corp.		23,934		208,944
Geo Group, Inc. (The)		53,292		1,049,852
Getty Realty Corp.		13,449		395,535
Gladstone Commercial Corp.		13,243		237,315
Global Net Lease, Inc.		31,987		563,611
Government Properties Income Trust (b)		44,872		308,271
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		23,478		447,256
Healthcare Realty Trust, Inc. (b)		53,035		1,508,315
Hersha Hospitality Trust		16,071		281,885
Independence Realty Trust, Inc.		39,339		361,132
Industrial Logistics Properties Trust (b)		27,724		545,334
InfraREIT, Inc.		19,986		420,106
Innovative Industrial Properties, Inc. (b)		4,310		195,631
Investors Real Estate Trust		5,565		273,075
iStar, Inc.		31,393		287,874
Jernigan Capital, Inc.		8,813		174,674
Kite Realty Group Trust		38,990		549,369
Lexington Realty Trust		93,551		768,054
LTC Properties, Inc.		17,896		745,905
Mack-Cali Realty Corp.		38,134		747,045
Monmouth Real Estate Investment Corp.		38,893		482,273
National Health Investors, Inc.		18,042		1,362,893
National Storage Affiliates Trust		25,366		671,184
New Senior Investment Group, Inc.		35,722		147,175
NexPoint Residential Trust, Inc.		9,154		320,848
NorthStar Realty Europe Corp.		22,208		322,904
One Liberty Properties, Inc.		6,290		152,344
Pebblebrook Hotel Trust		59,002		1,670,347
Pennsylvania Real Estate Investment Trust (b)		32,570		193,466
Physicians Realty Trust (b)		82,152		1,316,897
Piedmont Office Realty Trust, Inc. - Class A		53,950		919,308
PotlatchDeltic Corp.		29,869		945,055
Preferred Apartment Communities, Inc. - Class A		18,839		264,876
PS Business Parks, Inc.		8,900		1,165,900
QTS Realty Trust, Inc. - Class A		22,822		845,555
Retail Opportunity Investments Corp. (b)		47,153		748,790
Rexford Industrial Realty, Inc.		40,096		1,181,629
RLJ Lodging Trust		77,648		1,273,427
RPT Realty		37,976		453,813
Ryman Hospitality Properties, Inc.		19,180		1,279,114
Sabra Health Care REIT, Inc. (b)		75,831		1,249,695
Saul Centers, Inc.		5,405		255,224
Select Income REIT		36,937		271,856
Seritage Growth Properties - Class A (b)		15,000		484,950
Spirit MTA REIT		21,163		150,892
STAG Industrial, Inc.		41,512		1,032,819
Summit Hotel Properties, Inc.		48,101		468,023
Sunstone Hotel Investors, Inc.		103,053		1,340,719
Tanger Factory Outlet Centers, Inc. (b)		42,302		855,346
Terreno Realty Corp.		25,347		891,454
Tier REIT, Inc.		22,342		460,915
UMH Properties, Inc.		14,825		175,528

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares			Value
Equity Real Estate Investment Trusts—(Continued)
Universal Health Realty Income Trust		6,109		$	374,909
Urban Edge Properties		50,231			834,839
Urstadt Biddle Properties, Inc. - Class A		13,207			253,839
Washington Prime Group, Inc. (b)		85,471			415,389
Washington Real Estate Investment Trust		34,947			803,781
Whitestone REIT (b)		18,215			223,316
Xenia Hotels & Resorts, Inc.		49,824			856,973
					52,535,930
Food & Staples Retailing—0.6%
Andersons, Inc. (The)		13,251			396,072
BJ’s Wholesale Club Holdings, Inc. (a)		31,105			689,287
Chefs’ Warehouse, Inc. (The) (a)		8,577			274,293
Ingles Markets, Inc. - Class A		6,173			168,029
Performance Food Group Co. (a)		45,579			1,470,834
Pricesmart, Inc.		9,083			536,805
Rite Aid Corp. (a) (b)		368,023			260,671
SpartanNash Co.		16,917			290,634
United Natural Foods, Inc. (a) (b)		23,843			252,497
Village Super Market, Inc. - Class A		4,043			108,110
Weis Markets, Inc. (b)		4,490			214,532
					4,661,764
Food Products—1.2%
B&G Foods, Inc. (b)		30,133			871,145
Cal-Maine Foods, Inc.		14,364			607,597
Calavo Growers, Inc.		7,353			536,475
Darling Ingredients, Inc. (a)		72,905			1,402,692
Dean Foods Co. (b)		42,544			162,093
Farmer Bros Co. (a)		3,967	��		92,550
Fresh Del Monte Produce, Inc.		13,189			372,853
Freshpet, Inc. (a)		10,616			341,411
Hostess Brands, Inc. (a)		45,622			499,105
J&J Snack Foods Corp.		6,582			951,691
John B Sanfilippo & Son, Inc.		4,150			230,989
Lancaster Colony Corp.		8,191			1,448,660
Landec Corp. (a)		14,010			165,878
Limoneira Co.		6,209			121,386
Sanderson Farms, Inc. (b)		9,362			929,553
Seneca Foods Corp. - Class A (a)		3,596			101,479
Simply Good Foods Co. (The) (a)		26,653			503,742
Tootsie Roll Industries, Inc. (b)		6,429			214,729
					9,554,028
Gas Utilities—1.2%
Chesapeake Utilities Corp.		6,975			567,068
New Jersey Resources Corp.		38,723			1,768,479
Northwest Natural Holding Co.		13,257			801,518
ONE Gas, Inc.		22,361			1,779,936
RGC Resources, Inc.		3,484			104,381
South Jersey Industries, Inc. (b)		37,782			1,050,340
Southwest Gas Holdings, Inc.		21,731			1,662,421
Spire, Inc.		20,952			1,552,124
					9,286,267
Health Care Equipment & Supplies—3.7%
Accuray, Inc. (a)		42,251			144,076
AngioDynamics, Inc. (a)		17,852			359,361
Anika Therapeutics, Inc. (a) (b)		7,087			238,194
Antares Pharma, Inc. (a)		69,581			189,260
AtriCure, Inc. (a)		16,270			497,862
Atrion Corp.		618			457,987
Avanos Medical, Inc. (a)		20,898			936,021
AxoGen, Inc. (a)		15,476			316,175
Cardiovascular Systems, Inc. (a)		14,951			425,954
Cerus Corp. (a)		58,326			295,713
CONMED Corp.		11,683			750,049
CryoLife, Inc. (a)		17,220			488,704
CryoPort, Inc. (a) (b)		12,188			134,434
Cutera, Inc. (a)		6,744			114,783
CytoSorbents Corp. (a)		14,785			119,463
GenMark Diagnostics, Inc. (a)		26,350			128,061
Glaukos Corp. (a) (b)		15,446			867,602
Globus Medical, Inc. - Class A (a)		32,771			1,418,329
Haemonetics Corp. (a)		22,809			2,282,040
Heska Corp. (a) (b)		3,277			282,150
Inogen, Inc. (a)		7,603			944,064
Integer Holdings Corp. (a)		13,621			1,038,737
iRhythm Technologies, Inc. (a)		11,010			764,975
Lantheus Holdings, Inc. (a)		18,267			285,878
LeMaitre Vascular, Inc.		7,651			180,870
LivaNova plc (a)		21,333			1,951,329
Meridian Bioscience, Inc.		22,552			391,503
Merit Medical Systems, Inc. (a)		23,561			1,314,939
Natus Medical, Inc. (a) (b)		15,157			515,793
Neogen Corp. (a)		21,760			1,240,320
Nevro Corp. (a)		13,030			506,737
Novocure, Ltd. (a)		33,161			1,110,230
NuVasive, Inc. (a)		22,101			1,095,326
Nuvectra Corp. (a)		7,371			120,442
NxStage Medical, Inc. (a)		30,508			873,139
OraSure Technologies, Inc. (a)		28,446			332,249
Orthofix Medical, Inc. (a)		7,561			396,877
OrthoPediatrics Corp. (a)		3,676			128,219
Oxford Immunotec Global plc (a)		12,520			160,006
Quidel Corp. (a)		15,132			738,744
RTI Surgical, Inc. (a)		30,074			111,274
SeaSpine Holdings Corp. (a)		7,730			140,995
Senseonics Holdings, Inc. (a) (b)		42,278			109,500
Sientra, Inc. (a)		11,599			147,423
STAAR Surgical Co. (a)		19,419			619,660
SurModics, Inc. (a)		6,159			291,074
Tactile Systems Technology, Inc. (a)		8,238			375,241
Tandem Diabetes Care, Inc. (a)		22,706			862,147
TransEnterix, Inc. (a) (b)		73,037			165,064
Utah Medical Products, Inc.		2,002			166,326
Varex Imaging Corp. (a)		17,885			423,517
ViewRay, Inc. (a) (b)		25,410			154,239
Wright Medical Group NV (a)		55,761			1,517,814
					29,620,869

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Health Care Providers & Services—1.9%
Addus HomeCare Corp. (a)		4,191	$	284,485
Amedisys, Inc. (a)		11,809		1,382,952
AMN Healthcare Services, Inc. (a)		21,592		1,223,403
BioScrip, Inc. (a)		62,422		222,846
BioTelemetry, Inc. (a)		15,132		903,683
Brookdale Senior Living, Inc. (a)		86,808		581,614
Civitas Solutions, Inc. (a)		8,134		142,426
Community Health Systems, Inc. (a) (b)		43,641		123,068
Corvel Corp. (a)		4,267		263,359
Cross Country Healthcare, Inc. (a)		16,495		120,908
Diplomat Pharmacy, Inc. (a) (b)		26,141		351,858
Ensign Group, Inc. (The)		21,431		831,308
Guardant Health, Inc. (a)		8,622		324,101
HealthEquity, Inc. (a) (b)		23,550		1,404,757
LHC Group, Inc. (a)		13,057		1,225,791
Magellan Health, Inc. (a)		11,100		631,479
National Healthcare Corp.		5,246		411,549
National Research Corp. - Class A		4,950		188,793
Owens & Minor, Inc.		28,475		180,247
Patterson Cos., Inc.		37,980		746,687
PetIQ, Inc. (a) (b)		7,710		180,954
Providence Service Corp. (The) (a)		5,978		358,799
R1 RCM, Inc. (a)		47,026		373,857
RadNet, Inc. (a)		21,044		214,017
Select Medical Holdings Corp. (a)		47,385		727,360
Surgery Partners, Inc. (a)		9,540		93,397
Tenet Healthcare Corp. (a)		38,490		659,719
Tivity Health, Inc. (a)		18,680		463,451
Triple-S Management Corp. - Class B (a)		9,291		161,570
U.S. Physical Therapy, Inc.		6,011		615,226
				15,393,664
Health Care Technology—1.1%
Allscripts Healthcare Solutions, Inc. (a) (b)		77,571		747,784
Computer Programs & Systems, Inc. (b)		5,856		146,986
Evolent Health, Inc. - Class A (a)		31,066		619,767
HealthStream, Inc.		12,016		290,186
HMS Holdings Corp. (a)		37,216		1,046,886
Inovalon Holdings, Inc. - Class A (a) (b)		29,972		425,003
Inspire Medical Systems, Inc. (a)		5,663		239,262
Medidata Solutions, Inc. (a) (b)		24,663		1,662,780
NextGen Healthcare, Inc. (a)		24,814		375,932
Omnicell, Inc. (a)		16,836		1,031,037
Simulations Plus, Inc.		5,451		108,475
Tabula Rasa HealthCare, Inc. (a)		8,170		520,919
Teladoc Health, Inc. (a) (b)		29,056		1,440,306
Vocera Communications, Inc. (a) (b)		13,407		527,565
				9,182,888
Hotels, Restaurants & Leisure—2.9%
BBX Capital Corp.		25,192		144,350
Belmond, Ltd. - Class A (a)		38,434		962,003
BJ’s Restaurants, Inc.		9,083		459,327
Bloomin’ Brands, Inc.		36,028		644,541
Bojangles’, Inc. (a)		8,300		133,464
Boyd Gaming Corp. (b)		36,831		765,348
Hotels, Restaurants & Leisure—(Continued)
Brinker International, Inc. (b)		16,964		746,077
Carrols Restaurant Group, Inc. (a)		17,458		171,787
Cheesecake Factory, Inc. (The) (b)		18,905		822,557
Churchill Downs, Inc.		4,976		1,213,846
Chuy’s Holdings, Inc. (a) (b)		8,272		146,745
Cracker Barrel Old Country Store, Inc. (b)		8,458		1,352,096
Dave & Buster’s Entertainment, Inc. (b)		17,269		769,507
Del Frisco’s Restaurant Group, Inc. (a)		16,266		116,302
Del Taco Restaurants, Inc. (a)		16,196		161,798
Denny’s Corp. (a)		25,229		408,962
Dine Brands Global, Inc.		7,762		522,693
Drive Shack, Inc. (a)		29,184		114,401
El Pollo Loco Holdings, Inc. (a)		10,879		165,034
Eldorado Resorts, Inc. (a)		27,820		1,007,362
Fiesta Restaurant Group, Inc. (a)		9,712		150,633
Golden Entertainment, Inc. (a)		8,432		135,081
Habit Restaurants, Inc. (The) - Class A (a)		10,004		105,042
International Speedway Corp. - Class A		10,424		457,197
Jack in the Box, Inc.		12,021		933,190
Lindblad Expeditions Holdings, Inc. (a)		10,779		145,085
Marriott Vacations Worldwide Corp.		16,923		1,193,241
Monarch Casino & Resort, Inc. (a)		5,265		200,807
Papa John’s International, Inc. (b)		10,257		408,331
Penn National Gaming, Inc. (a)		48,164		906,928
Planet Fitness, Inc. - Class A (a)		37,935		2,034,075
PlayAGS, Inc. (a)		9,992		229,816
Potbelly Corp. (a)		12,520		100,786
Red Robin Gourmet Burgers, Inc. (a) (b)		5,863		156,659
Red Rock Resorts, Inc. - Class A		32,000		649,920
Ruth’s Hospitality Group, Inc.		13,027		296,104
Scientific Games Corp. - Class A (a) (b)		24,798		443,388
SeaWorld Entertainment, Inc. (a)		25,485		562,964
Shake Shack, Inc. - Class A (a)		11,359		515,926
Texas Roadhouse, Inc.		29,169		1,741,389
Wingstop, Inc.		12,085		775,736
				22,970,498
Household Durables—1.4%
Bassett Furniture Industries, Inc.		4,989		99,980
Beazer Homes USA, Inc. (a)		13,700		129,876
Cavco Industries, Inc. (a)		3,571		465,587
Century Communities, Inc. (a)		12,109		209,001
Ethan Allen Interiors, Inc. (b)		12,159		213,877
GoPro, Inc. - Class A (a) (b)		52,565		222,876
Helen of Troy, Ltd. (a)		11,424		1,498,600
Hooker Furniture Corp.		5,444		143,395
Installed Building Products, Inc. (a)		9,469		319,011
iRobot Corp. (a) (b)		11,431		957,232
KB Home		37,780		721,598
La-Z-Boy, Inc.		21,678		600,697
LGI Homes, Inc. (a) (b)		8,210		371,256
M/I Homes, Inc. (a)		12,868		270,485
MDC Holdings, Inc.		19,261		541,427
Meritage Homes Corp. (a)		15,760		578,707
Roku, Inc. (a)		19,013		582,558
Skyline Champion Corp.		13,094		192,351

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Household Durables—(Continued)
Taylor Morrison Home Corp. - Class A (a)		53,102	$	844,322
TopBuild Corp. (a)		15,564		700,380
TRI Pointe Group, Inc. (a) (b)		66,237		723,970
Tupperware Brands Corp.		21,006		663,160
Universal Electronics, Inc. (a)		6,028		152,388
William Lyon Homes - Class A (a)		14,816		158,383
ZAGG, Inc. (a)		14,118		138,074
				11,499,191
Household Products—0.2%
Central Garden and Pet Co. (a)		4,446		153,165
Central Garden and Pet Co. - Class A (a)		18,062		564,437
WD-40 Co. (b)		5,879		1,077,386
				1,794,988
Independent Power and Renewable Electricity Producers—0.4%
Atlantic Power Corp. (a)		50,551		109,696
Clearway Energy, Inc. - Class A		16,087		272,192
Clearway Energy, Inc. - Class C		32,256		556,416
Ormat Technologies, Inc.		16,822		879,791
Pattern Energy Group, Inc. - Class A		35,949		669,370
TerraForm Power, Inc. - Class A		34,889		391,454
				2,878,919
Industrial Conglomerates—0.1%
Raven Industries, Inc.		15,898		575,349
Insurance—2.8%
Ambac Financial Group, Inc. (a)		22,444		386,935
American Equity Investment Life Holding Co.		37,983		1,061,245
AMERISAFE, Inc.		7,822		443,429
Argo Group International Holdings, Ltd.		14,435		970,754
Citizens, Inc. (a) (b)		22,172		166,733
CNO Financial Group, Inc.		71,414		1,062,640
eHealth, Inc. (a)		7,987		306,861
EMC Insurance Group, Inc.		4,472		142,433
Employers Holdings, Inc.		14,789		620,694
Enstar Group, Ltd. (a)		5,526		925,992
FBL Financial Group, Inc. - Class A		4,790		314,463
FedNat Holding Co.		5,989		119,301
Genworth Financial, Inc. - Class A (a)		223,663		1,042,270
Global Indemnity, Ltd.		3,335		120,827
Goosehead Insurance, Inc. - Class A (a)		5,024		132,081
Greenlight Capital Re, Ltd. - Class A (a) (b)		13,998		120,663
HCI Group, Inc. (b)		2,670		135,663
Health Insurance Innovations, Inc. - Class A (a) (b)		5,782		154,553
Heritage Insurance Holdings, Inc.		11,792		173,578
Horace Mann Educators Corp.		18,978		710,726
Investors Title Co.		687		121,379
James River Group Holdings, Ltd.		12,177		444,948
Kemper Corp.		23,579		1,565,174
Kinsale Capital Group, Inc.		9,172		509,596
MBIA, Inc. (a)		41,874		373,516
National General Holdings Corp.		28,508		690,179
National Western Life Group, Inc. - Class A		1,054		316,938
Insurance—(Continued)
Navigators Group, Inc. (The)		9,344		649,315
Primerica, Inc.		18,907		1,847,403
ProAssurance Corp.		22,282		903,758
RLI Corp. (b)		16,583		1,144,061
Safety Insurance Group, Inc.		6,815		557,535
Selective Insurance Group, Inc.		24,829		1,513,079
State Auto Financial Corp.		7,940		270,278
Stewart Information Services Corp.		10,993		455,110
Third Point Reinsurance, Ltd. (a)		34,789		335,366
Trupanion, Inc. (a) (b)		11,074		281,944
United Fire Group, Inc.		9,677		536,590
United Insurance Holdings Corp.		8,654		143,829
Universal Insurance Holdings, Inc. (b)		13,371		507,028
				22,278,867
Interactive Media & Services—0.5%
Care.com, Inc. (a)		6,999		135,151
Cargurus, Inc. (a)		21,694		731,739
Cars.com, Inc. (a) (b)		29,503		634,314
Liberty TripAdvisor Holdings, Inc. - Class A (a)		34,803		553,020
Meet Group, Inc. (The) (a)		33,008		152,827
QuinStreet, Inc. (a)		18,085		293,520
TrueCar, Inc. (a)		42,606		386,010
Yelp, Inc. (a) (b)		36,366		1,272,446
				4,159,027
Internet & Direct Marketing Retail—0.9%
1-800-Flowers.com, Inc. - Class A (a)		13,330		163,026
Etsy, Inc. (a) (b)		52,499		2,497,378
Groupon, Inc. (a) (b)		195,286		624,915
Liberty Expedia Holdings, Inc. - Class A (a)		22,829		892,842
Nutrisystem, Inc.		12,339		541,435
Overstock.com, Inc. (a) (b)		9,776		132,758
PetMed Express, Inc. (b)		9,436		219,481
Quotient Technology, Inc. (a)		35,202		375,958
Shutterfly, Inc. (a)		15,092		607,604
Shutterstock, Inc.		9,230		332,372
Stamps.com, Inc. (a)		7,719		1,201,385
				7,589,154
IT Services—2.0%
Brightcove, Inc. (a)		17,189		121,011
CACI International, Inc. - Class A (a) (c)		10,580		1,523,837
Carbonite, Inc. (a)		13,993		353,463
Cardtronics plc - Class A (a)		17,673		459,498
Cass Information Systems, Inc.		5,890		311,699
ConvergeOne Holdings, Inc.		12,447		154,094
CSG Systems International, Inc. (b)		15,258		484,747
Endurance International Group Holdings, Inc. (a)		27,122		180,361
Everi Holdings, Inc. (a)		31,818		163,863
EVERTEC, Inc.		25,916		743,789
Evo Payments, Inc. - Class A (a) (b)		11,615		286,542
ExlService Holdings, Inc. (a)		15,305		805,349
GTT Communications, Inc. (a) (b)		18,758		443,814
Hackett Group, Inc. (The)		11,151		178,527

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
IT Services—(Continued)
Limelight Networks, Inc. (a)		43,835	$	102,574
LiveRamp Holdings, Inc. (a)		34,321		1,325,820
ManTech International Corp. - Class A		10,826		566,146
MAXIMUS, Inc.		27,829		1,811,390
NIC, Inc.		29,109		363,280
Perficient, Inc. (a)		13,564		301,935
Perspecta, Inc. (b)		61,282		1,055,276
Presidio, Inc.		16,489		215,181
Science Applications International Corp.		17,892		1,139,720
Sykes Enterprises, Inc. (a)		18,634		460,819
Travelport Worldwide, Ltd.		56,729		886,107
TTEC Holdings, Inc.		7,377		210,761
Tucows, Inc. - Class A (a) (b)		4,376		262,823
Unisys Corp. (a) (b)		20,742		241,229
Virtusa Corp. (a)		12,986		553,074
				15,706,729
Leisure Products—0.4%
Acushnet Holdings Corp.		14,893		313,796
American Outdoor Brands Corp. (a)		25,637		329,692
Callaway Golf Co.		43,200		660,960
Clarus Corp.		10,372		104,965
Johnson Outdoors, Inc. - Class A		2,524		148,260
Malibu Boats, Inc. - Class A (a)		8,768		305,126
MasterCraft Boat Holdings, Inc. (a)		9,205		172,133
Nautilus, Inc. (a)		16,328		177,975
Sturm Ruger & Co., Inc.		7,553		401,971
Vista Outdoor, Inc. (a) (b)		27,041		306,915
YETI Holdings, Inc. (a)		13,847		205,489
				3,127,282
Life Sciences Tools & Services—0.5%
Accelerate Diagnostics, Inc. (a) (b)		11,348		130,502
Cambrex Corp. (a) (b)		15,180		573,197
Codexis, Inc. (a) (b)		21,463		358,432
Luminex Corp.		18,901		436,802
Medpace Holdings, Inc. (a)		9,844		521,043
NanoString Technologies, Inc. (a)		11,330		168,024
NeoGenomics, Inc. (a) (b)		26,497		334,127
Pacific Biosciences of California, Inc. (a)		57,706		427,024
Syneos Health, Inc. (a)		28,231		1,110,890
				4,060,041
Machinery—3.6%
Actuant Corp. - Class A		28,401		596,137
Alamo Group, Inc.		4,629		357,914
Albany International Corp. - Class A		12,352		771,135
Altra Industrial Motion Corp.		27,121		682,093
Astec Industries, Inc.		10,105		305,070
Barnes Group, Inc.		20,566		1,102,749
Blue Bird Corp. (a)		5,751		104,611
Briggs & Stratton Corp. (b)		19,347		253,059
Chart Industries, Inc. (a)		14,133		919,069
CIRCOR International, Inc.		7,291		155,298
Columbus McKinnon Corp.		10,074		303,630
Machinery—(Continued)
DMC Global, Inc.		7,160		251,459
Douglas Dynamics, Inc.		9,877		354,486
Energy Recovery, Inc. (a) (b)		17,996		121,113
EnPro Industries, Inc.		8,388		504,119
ESCO Technologies, Inc.		10,899		718,789
Evoqua Water Technologies Corp. (a)		34,844		334,502
Federal Signal Corp.		27,402		545,300
Franklin Electric Co., Inc.		21,104		904,940
Global Brass & Copper Holdings, Inc.		11,099		279,140
Gorman-Rupp Co. (The)		7,300		236,593
Graham Corp.		4,832		110,363
Greenbrier Cos., Inc. (The)		14,568		576,019
Harsco Corp. (a)		33,858		672,420
Hillenbrand, Inc.		26,557		1,007,307
Hurco Cos., Inc.		3,167		113,062
Hyster-Yale Materials Handling, Inc.		4,976		308,313
John Bean Technologies Corp.		13,882		996,866
Kadant, Inc.		4,675		380,825
Kennametal, Inc. (b)		34,945		1,162,970
Lindsay Corp.		4,595		442,269
Lydall, Inc. (a)		8,342		169,426
Manitowoc Co., Inc. (The) (a)		15,849		234,090
Meritor, Inc. (a)		37,321		631,098
Milacron Holdings Corp. (a)		30,587		363,679
Miller Industries, Inc.		5,680		153,360
Mueller Industries, Inc.		26,115		610,046
Mueller Water Products, Inc. - Class A		67,872		617,635
Navistar International Corp. (a)		21,262		551,749
NN, Inc. (b)		12,696		85,190
Park-Ohio Holdings Corp.		4,748		145,716
Proto Labs, Inc. (a)		11,672		1,316,485
RBC Bearings, Inc. (a)		10,400		1,363,440
REV Group, Inc. (b)		11,893		89,316
Rexnord Corp. (a)		44,341		1,017,626
Spartan Motors, Inc.		16,327		118,044
SPX Corp. (a)		17,680		495,217
SPX FLOW, Inc. (a)		19,349		588,597
Standex International Corp.		5,879		394,951
Sun Hydraulics Corp.		12,428		412,485
Tennant Co.		8,362		435,744
Titan International, Inc.		22,706		105,810
TriMas Corp. (a)		18,947		517,064
Wabash National Corp.		27,273		356,731
Watts Water Technologies, Inc. - Class A		12,721		820,886
Woodward, Inc.		22,995		1,708,299
				28,874,304
Marine—0.1%
Costamare, Inc.		19,016		83,480
Eagle Bulk Shipping, Inc. (a)		23,786		109,654
Matson, Inc.		17,506		560,542
Scorpio Bulkers, Inc.		28,455		157,356
				911,032
Media—1.4%
Central European Media Enterprises, Ltd. - Class A (a)		41,828		116,282

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Media—(Continued)
Clear Channel Outdoor Holdings, Inc. - Class A		18,388	$	95,434
Daily Journal Corp. (a) (b)		598		139,932
Emerald Expositions Events, Inc.		11,929		147,204
Entercom Communications Corp. - Class A (b)		57,510		328,382
EW Scripps Co. (The) - Class A		21,625		340,161
Gannett Co., Inc.		48,407		412,912
Gray Television, Inc. (a)		36,845		543,095
Hemisphere Media Group, Inc. (a)		9,041		109,758
Liberty Latin America, Ltd. - Class A (a) (b)		20,395		295,320
Liberty Latin America, Ltd. - Class C (a) (b)		52,143		759,724
Loral Space & Communications, Inc. (a)		6,669		248,420
Meredith Corp. (b)		16,644		864,489
MSG Networks, Inc. - Class A (a) (b)		24,914		586,974
National CineMedia, Inc.		30,282		196,227
New Media Investment Group, Inc.		27,741		320,963
New York Times Co. (The) - Class A		58,218		1,297,679
Nexstar Media Group, Inc. - Class A (b)		19,881		1,563,442
Scholastic Corp.		13,390		539,081
Sinclair Broadcast Group, Inc. - Class A		28,841		759,672
TechTarget, Inc. (a)		9,817		119,866
TEGNA, Inc.		94,828		1,030,780
Tribune Publishing Co. (a)		6,955		78,870
WideOpenWest, Inc. (a)		15,386		109,702
				11,004,369
Metals & Mining—1.1%
AK Steel Holding Corp. (a) (b)		106,332		239,247
Allegheny Technologies, Inc. (a) (b)		56,239		1,224,323
Carpenter Technology Corp.		20,845		742,290
Century Aluminum Co. (a) (b)		22,819		166,807
Cleveland-Cliffs, Inc. (a) (b)		134,737		1,036,128
Coeur Mining, Inc. (a)		83,654		373,933
Commercial Metals Co.		48,444		776,073
Compass Minerals International, Inc. (b)		15,656		652,699
Ferroglobe Representation & Warranty Insurance Trust (a) (d)		31,634		0
Gold Resource Corp.		25,100		100,400
Haynes International, Inc.		6,653		175,639
Hecla Mining Co. (b)		201,874		476,423
Kaiser Aluminum Corp.		6,611		590,296
Materion Corp.		9,498		427,315
Schnitzer Steel Industries, Inc. - Class A		10,351		223,064
SunCoke Energy, Inc. (a)		32,541		278,226
Tahoe Resources, Inc. (a)		117,368		428,393
TimkenSteel Corp. (a) (b)		18,629		162,817
Warrior Met Coal, Inc.		19,698		474,919
Worthington Industries, Inc.		17,089		595,381
				9,144,373
Mortgage Real Estate Investment Trusts—1.1%
AG Mortgage Investment Trust, Inc.		14,345		228,516
Anworth Mortgage Asset Corp.		45,782		184,959
Apollo Commercial Real Estate Finance, Inc.		56,688		944,422
Arbor Realty Trust, Inc. (b)		29,936		301,455
Ares Commercial Real Estate Corp.		11,438		149,152
ARMOUR Residential REIT, Inc.		19,400		397,700
Blackstone Mortgage Trust, Inc. - Class A (b)		49,203		1,567,608
Mortgage Real Estate Investment Trusts—(Continued)
Capstead Mortgage Corp.		43,532		290,358
Cherry Hill Mortgage Investment Corp.		7,926		139,022
Colony Credit Real Estate, Inc.		37,213		587,593
Dynex Capital, Inc.		27,274		156,007
Exantas Capital Corp.		16,059		160,911
Granite Point Mortgage Trust, Inc. (b)		19,775		356,543
Invesco Mortgage Capital, Inc.		49,693		719,555
KKR Real Estate Finance Trust, Inc.		10,088		193,185
Ladder Capital Corp.		40,418		625,266
New York Mortgage Trust, Inc. (b)		63,517		374,115
Orchid Island Capital, Inc. (b)		21,449		137,059
PennyMac Mortgage Investment Trust		26,727		497,657
Ready Capital Corp.		8,791		121,580
Redwood Trust, Inc.		36,925		556,460
TPG RE Finance Trust, Inc.		15,059		275,279
Western Asset Mortgage Capital Corp.		19,929		166,208
				9,130,610
Multi-Utilities—0.5%
Avista Corp.		27,924		1,186,211
Black Hills Corp.		22,987		1,443,124
NorthWestern Corp.		21,883		1,300,725
Unitil Corp.		7,429		376,205
				4,306,265
Multiline Retail—0.3%
Big Lots, Inc.		17,050		493,086
Dillard’s, Inc. - Class A (b)		4,781		288,342
J.C. Penney Co., Inc. (a) (b)		69,879		72,674
Ollie’s Bargain Outlet Holdings, Inc. (a)		21,477		1,428,436
				2,282,538
Oil, Gas & Consumable Fuels—2.2%
Arch Coal, Inc. - Class A		7,564		627,736
Bonanza Creek Energy, Inc. (a)		9,142		188,965
California Resources Corp. (a)		20,491		349,167
Callon Petroleum Co. (a) (b)		106,061		688,336
Carrizo Oil & Gas, Inc. (a)		37,509		423,477
Clean Energy Fuels Corp. (a)		71,620		123,186
CONSOL Energy, Inc. (a)		13,213		418,984
CVR Energy, Inc.		8,533		294,218
Delek U.S. Holdings, Inc.		35,683		1,160,054
Denbury Resources, Inc. (a)		204,313		349,375
DHT Holdings, Inc.		42,744		167,556
Energy Fuels, Inc. (a) (b)		40,972		116,770
Frontline, Ltd. (a) (b)		36,108		199,677
GasLog, Ltd.		20,748		341,512
Golar LNG, Ltd.		40,113		872,859
Green Plains, Inc. (b)		17,956		235,403
Gulfport Energy Corp. (a) (b)		80,820		529,371
Halcon Resources Corp. (a) (b)		63,394		107,770
HighPoint Resources Corp. (a)		55,908		139,211
International Seaways, Inc. (a)		9,606		161,765
Jagged Peak Energy, Inc. (a) (b)		28,571		260,568
Laredo Petroleum, Inc. (a)		72,739		263,315

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Oil, Gas & Consumable Fuels—(Continued)
Matador Resources Co. (a) (b)		46,595	$	723,620
Nordic American Tankers, Ltd.		26,170		52,340
Northern Oil and Gas, Inc. (a) (b)		91,303		206,345
Oasis Petroleum, Inc. (a) (b)		124,006		685,753
Panhandle Oil and Gas, Inc. - Class A		7,855		121,753
Par Pacific holdings, Inc. (a)		16,282		230,879
PDC Energy, Inc. (a)		28,041		834,500
Peabody Energy Corp. (b)		34,338		1,046,622
Penn Virginia Corp. (a)		5,878		317,765
Renewable Energy Group, Inc. (a) (b)		16,294		418,756
Resolute Energy Corp. (a)		11,063		320,606
REX American Resources Corp. (a)		2,989		203,581
Ring Energy, Inc. (a) (b)		28,500		144,780
SandRidge Energy, Inc. (a)		13,335		101,479
Scorpio Tankers, Inc.		205,129		361,027
SemGroup Corp. - Class A		36,615		504,555
Ship Finance International, Ltd. (b)		38,547		405,900
Southwestern Energy Co. (a)		270,546		922,562
SRC Energy, Inc. (a) (b)		107,906		507,158
Talos Energy, Inc. (a) (b)		10,507		171,474
Teekay Corp.		29,414		98,243
Tellurian, Inc. (a) (b)		38,940		270,633
Uranium Energy Corp. (a)		5,866		7,333
W&T Offshore, Inc. (a) (b)		35,854		147,718
WildHorse Resource Development Corp. (a)		13,227		186,633
World Fuel Services Corp.		31,238		668,806
				17,680,096
Paper & Forest Products—0.4%
Boise Cascade Co.		18,411		439,102
Clearwater Paper Corp. (a)		7,836		190,963
Louisiana-Pacific Corp.		62,872		1,397,016
Neenah, Inc.		7,745		456,336
PH Glatfelter Co.		21,278		207,673
Schweitzer-Mauduit International, Inc.		12,254		306,963
Verso Corp. - Class A (a)		16,813		376,611
				3,374,664
Personal Products—0.3%
Edgewell Personal Care Co. (a)		24,669		921,387
Inter Parfums, Inc.		8,191		537,084
Medifast, Inc.		5,370		671,358
USANA Health Sciences, Inc. (a)		5,606		659,994
				2,789,823
Pharmaceuticals—1.9%
Aclaris Therapeutics, Inc. (a) (b)		13,157		97,230
Aerie Pharmaceuticals, Inc. (a)		16,392		591,751
Akcea Therapeutics, Inc. (a) (b)		7,356		221,710
Akorn, Inc. (a)		43,557		147,658
Amneal Pharmaceuticals, Inc. (a) (b)		40,537		548,466
Amphastar Pharmaceuticals, Inc. (a)		18,205		362,280
ANI Pharmaceuticals, Inc. (a)		3,945		177,604
Aratana Therapeutics, Inc. (a)		23,524		144,202
Assembly Biosciences, Inc. (a)		9,765		220,884
Pharmaceuticals—(Continued)
Assertio Therapeutics, Inc. (a)		30,866		111,426
Collegium Pharmaceutical, Inc. (a) (b)		14,032		240,929
Corcept Therapeutics, Inc. (a)		43,446		580,439
Cymabay Therapeutics, Inc. (a)		28,178		221,761
Dermira, Inc. (a)		18,139		130,419
Eloxx Pharmaceuticals, Inc. (a) (b)		14,403		172,980
Endo International plc (a)		96,815		706,750
Horizon Pharma plc (a)		73,606		1,438,261
Innoviva, Inc. (a)		33,334		581,678
Intersect ENT, Inc. (a)		13,971		393,703
Intra-Cellular Therapies, Inc. (a)		19,606		223,312
Mallinckrodt plc (a)		38,301		605,156
Medicines Co. (The) (a) (b)		32,038		613,207
MyoKardia, Inc. (a)		15,152		740,327
Omeros Corp. (a) (b)		21,460		239,064
Pacira Pharmaceuticals, Inc. (a)		18,507		796,171
Phibro Animal Health Corp. - Class A		9,993		321,375
Prestige Consumer Healthcare, Inc. (a) (b)		22,778		703,385
Reata Pharmaceuticals, Inc. - Class A (a)		8,381		470,174
Revance Therapeutics, Inc. (a) (b)		15,532		312,659
SIGA Technologies, Inc. (a)		22,951		181,313
Supernus Pharmaceuticals, Inc. (a) (b)		22,494		747,251
TherapeuticsMD, Inc. (a) (b)		78,988		300,944
Theravance Biopharma, Inc. (a) (b)		19,690		503,867
Tricida, Inc. (a)		5,217		123,017
WAVE Life Sciences, Ltd. (a) (b)		8,571		360,325
Zogenix, Inc. (a) (b)		19,414		707,835
				15,039,513
Professional Services—1.5%
ASGN, Inc. (a)		22,539		1,228,375
Barrett Business Services, Inc.		3,358		192,246
CBIZ, Inc. (a)		24,387		480,424
CRA International, Inc.		2,862		121,778
Exponent, Inc.		21,852		1,108,115
Forrester Research, Inc.		3,707		165,703
Franklin Covey Co. (a)		4,809		107,385
FTI Consulting, Inc. (a)		16,848		1,122,751
Heidrick & Struggles International, Inc.		9,634		300,484
Huron Consulting Group, Inc. (a)		10,356		531,366
ICF International, Inc.		7,485		484,878
Insperity, Inc.		16,476		1,538,199
Kelly Services, Inc. - Class A		14,944		306,053
Kforce, Inc.		9,613		297,234
Korn/Ferry International		25,738		1,017,681
Mistras Group, Inc. (a)		8,222		118,232
Navigant Consulting, Inc.		18,001		432,924
Resources Connection, Inc.		12,083		171,579
TriNet Group, Inc. (a)		19,326		810,726
TrueBlue, Inc. (a)		19,573		435,499
Upwork, Inc. (a)		9,503		172,099
WageWorks, Inc. (a)		18,480		501,917
Willdan Group, Inc. (a)		4,570		159,859
				11,805,507

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Real Estate Management & Development—0.6%
Altisource Portfolio Solutions S.A. (a) (b)		3,645	$	81,976
Cushman & Wakefield plc (a)		20,526		297,011
Essential Properties Realty Trust, Inc.		16,519		228,623
FRP Holdings, Inc. (a)		3,389		155,928
HFF, Inc. - Class A		17,641		584,976
Kennedy-Wilson Holdings, Inc.		56,325		1,023,425
Marcus & Millichap, Inc. (a)		9,235		317,037
Newmark Group, Inc. - Class A		64,506		517,338
RE/MAX Holdings, Inc. - Class A		8,877		272,968
Redfin Corp. (a) (b)		34,295		493,848
RMR Group, Inc. (The) - Class A (b)		3,481		184,771
St. Joe Co. (The) (a) (b)		13,592		179,007
Tejon Ranch Co. (a)		9,079		150,530
				4,487,438
Road & Rail—0.4%
ArcBest Corp.		10,451		358,051
Avis Budget Group, Inc. (a)		29,503		663,228
Covenant Transportation Group, Inc. - Class A (a)		5,776		110,899
Heartland Express, Inc.		22,410		410,103
Hertz Global Holdings, Inc. (a) (b)		26,814		366,011
Marten Transport, Ltd.		19,376		313,697
Saia, Inc. (a)		11,835		660,630
Werner Enterprises, Inc. (b)		19,256		568,822
				3,451,441
Semiconductors & Semiconductor Equipment—2.6%
Advanced Energy Industries, Inc. (a)		17,261		741,015
Alpha & Omega Semiconductor, Ltd. (a)		9,409		95,878
Ambarella, Inc. (a)		14,056		491,679
Amkor Technology, Inc. (a)		46,149		302,737
Axcelis Technologies, Inc. (a)		13,934		248,025
Brooks Automation, Inc.		29,420		770,216
Cabot Microelectronics Corp.		12,772		1,217,810
Ceva, Inc. (a)		10,183		224,942
Cirrus Logic, Inc. (a)		26,378		875,222
Cohu, Inc.		17,431		280,116
Cree, Inc. (a) (b)		43,635		1,866,487
Diodes, Inc. (a)		18,315		590,842
Entegris, Inc. (b)		61,443		1,713,952
FormFactor, Inc. (a) (c)		31,702		446,681
Ichor Holdings, Ltd. (a) (b)		12,029		196,073
Impinj, Inc. (a) (b)		8,561		124,563
Inphi Corp. (a) (b)		19,424		624,482
Integrated Device Technology, Inc. (a)		55,643		2,694,790
Lattice Semiconductor Corp. (a)		55,030		380,808
MACOM Technology Solutions Holdings, Inc. (a) (b)		18,984		275,458
MaxLinear, Inc. (a) (b)		26,699		469,902
Nanometrics, Inc. (a)		9,845		269,064
NeoPhotonics Corp. (a)		16,522		107,063
NVE Corp.		1,671		146,279
PDF Solutions, Inc. (a)		12,971		109,346
Photronics, Inc. (a)		30,362		293,904
Power Integrations, Inc.		11,988		731,028
Rambus, Inc. (a)		49,965		383,232
Rudolph Technologies, Inc. (a)		13,085		267,850
Semiconductors & Semiconductor Equipment—(Continued)
Semtech Corp. (a)		27,797		1,275,048
Silicon Laboratories, Inc. (a)		18,379		1,448,449
SMART Global Holdings, Inc. (a) (b)		4,560		135,432
SunPower Corp. (a) (b)		31,453		156,321
Synaptics, Inc. (a) (b)		14,825		551,638
Ultra Clean Holdings, Inc. (a) (b)		16,793		142,237
Veeco Instruments, Inc. (a)		22,250		164,873
Xperi Corp. (b)		19,629		360,977
				21,174,419
Software—5.3%
8x8, Inc. (a)		41,065		740,813
A10 Networks, Inc. (a)		21,727		135,576
ACI Worldwide, Inc. (a)		49,533		1,370,578
Agilysys, Inc. (a)		7,276		104,338
Alarm.com Holdings, Inc. (a) (b)		14,286		741,015
Altair Engineering, Inc. - Class A (a)		10,426		287,549
Alteryx, Inc. - Class A (a) (b)		12,993		772,694
American Software, Inc. - Class A		12,761		133,352
Anaplan, Inc. (a)		11,119		295,098
Appfolio, Inc. - Class A (a)		6,877		407,256
Apptio, Inc. - Class A (a)		15,604		592,328
Avalara, Inc. (a)		3,853		120,021
Avaya Holdings Corp. (a)		46,353		674,900
Benefitfocus, Inc. (a) (b)		9,362		428,031
Blackbaud, Inc. (b)		20,813		1,309,138
Blackline, Inc. (a)		16,099		659,254
Bottomline Technologies de, Inc. (a)		18,440		885,120
Box, Inc. - Class A (a)		53,384		901,122
Carbon Black, Inc. (a) (b)		17,262		231,656
ChannelAdvisor Corp. (a)		10,403		118,074
Cision, Ltd. (a) (b)		29,687		347,338
Cloudera, Inc. (a)		44,625		493,553
CommVault Systems, Inc. (a)		17,956		1,061,020
Cornerstone OnDemand, Inc. (a)		24,008		1,210,723
Coupa Software, Inc. (a)		23,704		1,490,033
Ebix, Inc. (b)		10,806		459,903
Ellie Mae, Inc. (a) (b)		15,120		949,990
Envestnet, Inc. (a)		20,207		993,982
Everbridge, Inc. (a)		12,141		689,123
Five9, Inc. (a)		24,673		1,078,704
ForeScout Technologies, Inc. (a)		13,416		348,682
Hortonworks, Inc. (a)		31,713		457,301
HubSpot, Inc. (a) (b)		16,070		2,020,481
Imperva, Inc. (a)		15,746		876,895
Instructure, Inc. (a)		14,481		543,182
j2 Global, Inc. (b)		19,963		1,385,033
LivePerson, Inc. (a)		24,337		458,996
MicroStrategy, Inc. - Class A (a)		4,222		539,360
MINDBODY, Inc. - Class A (a) (b)		20,014		728,510
Mitek Systems, Inc. (a)		14,980		161,934
MobileIron, Inc. (a)		28,325		130,012
Model N, Inc. (a)		11,583		153,243
Monotype Imaging Holdings, Inc.		18,592		288,548
New Relic, Inc. (a)		19,122		1,548,308
OneSpan, Inc. (a) (b)		15,031		194,651

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Software—(Continued)
Paylocity Holding Corp. (a)		13,301	$	800,853
Progress Software Corp.		18,551		658,375
PROS Holdings, Inc. (a)		12,910		405,374
Q2 Holdings, Inc. (a)		16,765		830,706
QAD, Inc. - Class A		4,798		188,705
Qualys, Inc. (a) (b)		14,838		1,108,992
Rapid7, Inc. (a)		16,703		520,465
SailPoint Technologies Holding, Inc. (a)		30,549		717,596
SendGrid, Inc. (a)		12,940		558,620
ShotSpotter, Inc. (a)		3,603		112,342
SPS Commerce, Inc. (a)		7,550		621,969
SVMK, Inc. (a) (b)		15,244		187,044
Tenable Holdings, Inc. (a)		4,699		104,271
TiVo Corp.		54,357		511,499
Trade Desk, Inc. (The) - Class A (a) (b)		14,265		1,655,596
Upland Software, Inc. (a)		7,503		203,932
Varonis Systems, Inc. (a)		12,721		672,941
Verint Systems, Inc. (a)		27,089		1,146,136
Workiva, Inc. (a)		12,561		450,814
Yext, Inc. (a) (b)		37,385		555,167
Zix Corp. (a)		25,140		144,052
Zscaler, Inc. (a) (b)		26,496		1,038,908
				42,711,775
Specialty Retail—2.9%
Aaron’s, Inc.		30,071		1,264,486
Abercrombie & Fitch Co. - Class A (b)		28,497		571,365
America’sCar-Mart, Inc. (a)		2,826		204,744
American Eagle Outfitters, Inc. (b)		68,438		1,322,906
Asbury Automotive Group, Inc. (a)		9,029		601,873
Ascena Retail Group, Inc. (a) (b)		80,127		201,119
At Home Group, Inc. (a) (b)		19,716		367,901
Barnes & Noble, Inc.		27,765		196,854
Bed Bath & Beyond, Inc. (b)		61,523		696,440
Boot Barn Holdings, Inc. (a)		12,612		214,782
Buckle, Inc. (The) (b)		14,188		274,396
Caleres, Inc.		17,181		478,147
Camping World Holdings, Inc. - Class A (b)		14,592		167,370
Carvana Co. (a) (b)		14,356		469,585
Cato Corp. (The) - Class A		9,562		136,450
Chico’s FAS, Inc.		59,471		334,227
Children’s Place, Inc. (The)		7,101		639,729
Citi Trends, Inc.		4,579		93,366
Conn’s, Inc. (a) (b)		10,289		194,051
DSW, Inc. - Class A		31,615		780,890
Express, Inc. (a) (b)		34,677		177,199
Five Below, Inc. (a) (b)		23,446		2,398,995
GameStop Corp. - Class A (b)		46,271		583,940
Genesco, Inc. (a) (b)		8,683		384,657
Group 1 Automotive, Inc.		7,911		417,068
Guess?, Inc.		25,521		530,071
Haverty Furniture Cos., Inc. (b)		10,391		195,143
Hibbett Sports, Inc. (a) (b)		10,209		145,989
Hudson, Ltd. - Class A (a)		18,056		309,660
Lithia Motors, Inc. - Class A (b)		9,344		713,227
Lumber Liquidators Holdings, Inc. (a) (b)		13,856		131,909
MarineMax, Inc. (a)		8,107		148,439
Specialty Retail—(Continued)
Monro, Inc.		13,506		928,537
Murphy USA, Inc. (a) (b)		12,944		992,028
National Vision Holdings, Inc. (a)		27,759		781,971
Office Depot, Inc.		240,796		621,254
Party City Holdco, Inc. (a) (b)		25,796		257,444
Rent-A-Center, Inc. (a)		21,277		344,475
RH (a) (b)		8,668		1,038,600
Sally Beauty Holdings, Inc. (a) (b)		51,377		875,978
Shoe Carnival, Inc. (b)		4,114		137,860
Signet Jewelers, Ltd. (b)		22,572		717,112
Sleep Number Corp. (a)		14,171		449,646
Sonic Automotive, Inc. - Class A		9,480		130,445
Tailored Brands, Inc. (b)		22,434		306,000
Tile Shop Holdings, Inc.		20,043		109,836
Tilly’s, Inc. - Class A		7,301		79,289
Winmark Corp.		1,140		181,260
Zumiez, Inc. (a)		10,452		200,365
				23,499,078
Technology Hardware, Storage & Peripherals—0.3%
3D Systems Corp. (a) (b)		50,283		511,378
Cray, Inc. (a)		19,290		416,471
Diebold Nixdorf, Inc. (b)		35,435		88,233
Electronics for Imaging, Inc. (a) (b)		18,879		468,199
Immersion Corp. (a)		14,029		125,700
Stratasys, Ltd. (a)		23,667		426,243
USA Technologies, Inc. (a)		23,924		93,064
				2,129,288
Textiles, Apparel & Luxury Goods—0.8%
Crocs, Inc. (a) (c)		28,518		740,898
Culp, Inc.		4,697		88,774
Deckers Outdoor Corp. (a)		12,597		1,611,786
Fossil Group, Inc. (a) (b)		20,656		324,919
G-III Apparel Group, Ltd. (a)		18,501		515,993
Movado Group, Inc.		7,984		252,454
Oxford Industries, Inc.		7,657		543,953
Steven Madden, Ltd. (b)		38,178		1,155,266
Unifi, Inc. (a)		7,892		180,253
Wolverine World Wide, Inc. (b)		39,246		1,251,555
				6,665,851
Thrifts & Mortgage Finance—2.2%
Axos Financial, Inc. (a) (b)		27,157		683,813
Beneficial Bancorp, Inc.		32,692		467,169
Bridgewater Bancshares, Inc. (a)		11,530		121,642
BSB Bancorp, Inc. (a)		4,295		120,518
Capitol Federal Financial, Inc.		59,838		764,131
Columbia Financial, Inc. (a)		20,912		319,744
Dime Community Bancshares, Inc.		15,501		263,207
Essent Group, Ltd. (a)		41,392		1,414,779
Federal Agricultural Mortgage Corp. - Class C		4,263		257,656
First Defiance Financial Corp.		10,076		246,963
Flagstar Bancorp, Inc. (a)		12,717		335,729
Hingham Institution for Savings		716		141,582
Home Bancorp, Inc.		3,086		109,244

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Thrifts & Mortgage Finance—(Continued)
HomeStreet, Inc. (a)		12,382	$	262,870
Kearny Financial Corp.		41,863		536,684
LendingTree, Inc. (a) (b)		3,578		785,621
Merchants Bancorp		7,914		157,963
Meridian Bancorp, Inc.		23,292		333,541
Meta Financial Group, Inc.		12,654		245,361
MGIC Investment Corp. (a)		157,311		1,645,473
Mr Cooper Group, Inc. (a)		33,464		390,525
NMI Holdings, Inc. - Class A (a)		27,711		494,641
Northfield Bancorp, Inc.		19,366		262,409
Northwest Bancshares, Inc. (b)		41,735		706,991
OceanFirst Financial Corp.		22,048		496,300
Oritani Financial Corp.		16,857		248,641
PCSB Financial Corp.		6,336		123,932
PennyMac Financial Services, Inc.		7,331		155,857
Provident Financial Services, Inc.		29,105		702,304
Radian Group, Inc.		93,977		1,537,464
Southern Missouri Bancorp, Inc.		3,592		121,769
Territorial Bancorp, Inc.		3,955		102,751
TrustCo Bank Corp.		42,750		293,265
United Community Financial Corp.		24,319		215,223
United Financial Bancorp, Inc.		21,901		321,945
Walker & Dunlop, Inc.		12,545		542,571
Washington Federal, Inc.		37,662		1,005,952
Waterstone Financial, Inc.		10,900		182,684
Western New England Bancorp, Inc.		13,397		134,506
WSFS Financial Corp.		14,223		539,194
				17,792,614
Tobacco—0.1%
22nd Century Group, Inc. (a) (b)		55,642		138,549
Turning Point Brands, Inc. (b)		4,000		108,880
Universal Corp.		10,254		555,254
Vector Group, Ltd. (b)		41,836		407,064
				1,209,747
Trading Companies & Distributors—1.2%
Aircastle, Ltd.		23,576		406,450
Applied Industrial Technologies, Inc.		16,061		866,330
Beacon Roofing Supply, Inc. (a) (b)		28,344		899,072
BMC Stock Holdings, Inc. (a)		31,129		481,877
CAI International, Inc. (a)		8,107		188,326
DXP Enterprises, Inc. (a)		6,978		194,267
GATX Corp. (b)		16,296		1,153,920
GMS, Inc. (a)		14,993		222,796
H&E Equipment Services, Inc.		15,412		314,713
Herc Holdings, Inc. (a)		11,071		287,735
Kaman Corp.		11,410		639,987
Lawson Products, Inc. (a)		3,183		100,583
MRC Global, Inc. (a)		38,704		473,350
Nexeo Solutions, Inc. (a)		13,514		116,085
NOW, Inc. (a) (b)		51,271		596,794
Rush Enterprises, Inc. - Class A		12,945		446,343
SiteOne Landscape Supply, Inc. (a) (b)		17,769		982,093
Trading Companies & Distributors—(Continued)
Systemax, Inc.		5,954		142,241
Textainer Group Holdings, Ltd. (a)		11,532		114,859
Titan Machinery, Inc. (a)		9,306		122,374
Triton International, Ltd. (b)		21,253		660,331
Veritiv Corp. (a)		5,727		143,003
				9,553,529
Water Utilities—0.5%
American States Water Co.		15,588		1,045,020
AquaVenture Holdings, Ltd. (a)		5,135		97,000
Artesian Resources Corp. - Class A		3,766		131,321
Cadiz, Inc. (a) (b)		11,218		115,545
California Water Service Group		20,902		996,189
Connecticut Water Service, Inc.		4,908		328,198
Middlesex Water Co.		7,497		399,965
SJW Group		7,394		411,254
York Water Co. (The)		6,695		214,642
				3,739,134
Wireless Telecommunication Services—0.2%
Boingo Wireless, Inc. (a)		17,390		357,712
NII Holdings, Inc. (a) (b)		41,560		183,279
Shenandoah Telecommunications Co.		20,059		887,611
Spok Holdings, Inc.		8,518		112,949
				1,541,551
Total Common Stocks (Cost $633,122,869)				774,441,066
Mutual Fund—3.0%
Investment Company Security—3.0%
iShares Russell 2000 Index ETF (b) (Cost $26,864,095)		177,600		23,780,640
Rights—0.0%
Biotechnology—0.0%
Tobira Therapeutics, Inc., Expires 12/31/28 (a) (d) (e) (f)		4,660		37,093
Chemicals—0.0%
A. Schulman, Inc. (d)		12,704		24,265
Total Rights (Cost $24,544)				61,358
Short-Term Investments—1.0%
Discount Notes—0.1%
Federal Home Loan Bank 2.288%, 01/30/19 (g)		475,000		474,121
2.319%, 02/06/19 (g)		525,000		523,775
				997,896

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Short-Term Investments—(Continued)

Security Description	Principal Amount*		Value
U.S. Treasury—0.9%
U.S. Treasury Bills 1.997%, 01/08/19 (g)		650,000	$	649,753
2.231%, 01/22/19 (g)		5,650,000		5,642,671
2.305%, 01/29/19 (g)		200,000		199,631
2.334%, 02/21/19 (g)		800,000		797,330
				7,289,385
Total Short-Term Investments (Cost $8,286,989)				8,287,281
Securities Lending Reinvestments (h)—20.8%
Certificates of Deposit—13.1%
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (i)		3,000,000		2,999,998
3.072%, 3M LIBOR + 0.280%, 03/20/19 (i)		3,000,000		3,001,197
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (i)		5,000,000		4,999,525
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (i)		2,000,000		1,999,196
Canadian Imperial Bank of Commerce 2.740%, 1M LIBOR + 0.270%, 07/19/19 (i)		4,000,000		3,998,376
China Construction Bank Corp. 2.550%, 01/07/19		4,000,000		4,000,000
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (i)		1,000,000		1,000,003
2.642%, 1M LIBOR + 0.210%, 09/13/19 (i)		5,000,000		5,000,000
Credit Agricole S.A. 2.500%, 02/12/19		3,000,000		2,999,490
Credit Suisse AG 2.620%, 04/01/19		5,000,000		4,997,410
2.890%, SOFR + 0.430%, 05/02/19 (i)		1,000,000		999,988
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		6,947,412		6,992,860
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (i)		5,000,000		5,000,030
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (i)		1,000,000		1,000,006
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (i)		4,000,000		3,997,480
2.731%, 3M LIBOR + 0.190%, 02/01/19 (i)		1,500,000		1,499,664
2.810%, 1M LIBOR + 0.370%, 02/14/19 (i)		2,000,000		2,000,374
2.940%, SOFR + 0.480%, 06/12/19 (i)		1,000,000		999,894
Royal Bank of Canada New York 2.650%, 1M LIBOR + 0.250%, 01/11/19 (i)		2,000,000		2,000,016
2.665%, 1M LIBOR + 0.210%, 09/17/19 (i)		8,000,000		7,991,816
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (i)		4,000,000		3,999,672
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (i)		3,000,000		2,998,668
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (i)		10,000,000		9,999,710
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (i)		5,000,000		4,999,775
2.822%, 1M LIBOR + 0.300%, 10/31/19 (i)		2,000,000		1,999,532
Certificates of Deposit—(Continued)
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (i)		7,000,000		6,993,336
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (i)		4,000,000		4,000,000
Wells Fargo Bank N.A. 2.730%, 3M LIBOR + 0.210%, 10/25/19 (i)		1,520,000		1,520,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (i)		1,500,000		1,499,991
				105,488,007
Commercial Paper—4.0%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (i)		4,000,000		3,998,892
Banco Santander S.A. 2.740%, 02/07/19		3,971,991		3,988,352
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (i)		2,000,000		2,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (i)		3,000,000		3,000,279
2.725%, 3M LIBOR + 0.110%, 05/10/19 (i)		3,000,000		2,999,646
Matchpoint Finance plc 2.890%, 05/08/19		3,941,879		3,957,012
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (i)		2,000,000		1,999,780
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (i)		5,000,000		5,001,225
Westpac Banking Corp. 2.659%, 3M LIBOR + 0.070%, 08/07/19 (i)		3,000,000		2,998,029
2.784%, 1M LIBOR + 0.280%, 05/24/19 (i)		2,000,000		1,999,920
				31,943,135
Repurchase Agreements—3.7%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $12,595,833; collateralized by various Common Stock with an aggregate market value of $13,752,292.		12,500,000		12,500,000
Citigroup Global Markets, Inc.
Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $1,002,713; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $1,088,319.		1,000,000	$	1,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $50,376; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $51,000.		50,000		50,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $300,042; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $306,000.		300,000		300,000

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (h)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $400,055; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $408,000.		400,000	$	400,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $200,031; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $204,000.		200,000		200,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $1,560,016; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $1,590,933.		1,559,738		1,559,738
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $3,526,297; collateralized by various Common Stock with an aggregate market value of $3,850,000.		3,500,000		3,500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $2,015,027; collateralized by various Common Stock with an aggregate market value of $2,200,000.		2,000,000		2,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,000,427; collateralized by various Common Stock with an aggregate market value of $3,339,637.		3,000,000		3,000,000
Repurchase Agreements—(Continued)
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $5,000,711; collateralized by various Common Stock with an aggregate market value of $5,566,061.		5,000,000		5,000,000
				29,509,738
Total Securities Lending Reinvestments (Cost $166,972,046)				166,940,880
Total Investments—121.0% (Cost $835,270,543)				973,511,225
Other assets and liabilities (net)—(21.0)%				(168,672,124	)
Net Assets—100.0%			$	804,839,101

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $166,928,760 and the collateral received consisted of cash in the amount of $166,891,020 andnon-cash collateral with a value of $3,439,662. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c)	All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2018, the market value of securities pledged was $2,747,289.
(d)	Illiquid security. As of December 31, 2018, these securities represent 0.0% of net assets.
(e)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(f)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent less than 0.05% of net assets.
(g)	The rate shown represents current yield to maturity.
(h)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(i)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts		Notional Amount			Value/ Unrealized Depreciation
Russell 2000 Index E-Mini Futures		03/15/19		42		USD	2,832,900	$	(140,131	)

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Glossary of Abbreviations

Currencies

(USD)— United States Dollar

Index Abbreviations

(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Other Abbreviations

(ETF)—	Exchange-Traded Fund
(REIT)—	Real Estate Investment Trust

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Aerospace & Defense	$	10,064,012	$	—	$	—	$	10,064,012
Air Freight & Logistics		2,596,871		—		—		2,596,871
Airlines		3,914,103		—		—		3,914,103
Auto Components		7,933,375		—		—		7,933,375
Automobiles		362,351		—		—		362,351
Banks		73,973,677		—		—		73,973,677
Beverages		2,139,650		—		—		2,139,650
Biotechnology		47,087,033		—		—		47,087,033
Building Products		9,505,712		—		—		9,505,712
Capital Markets		9,994,768		—		—		9,994,768
Chemicals		14,372,622		—		—		14,372,622
Commercial Services & Supplies		20,606,672		—		—		20,606,672
Communications Equipment		12,883,450		—		—		12,883,450
Construction & Engineering		8,050,135		—		—		8,050,135
Construction Materials		890,798		—		—		890,798
Consumer Finance		5,626,412		—		—		5,626,412
Containers & Packaging		867,616		—		—		867,616
Distributors		504,618		—		—		504,618
Diversified Consumer Services		7,368,889		—		—		7,368,889
Diversified Financial Services		1,323,927		—		—		1,323,927
Diversified Telecommunication Services		4,402,009		—		—		4,402,009
Electric Utilities		9,577,489		—		—		9,577,489
Electrical Equipment		5,815,543		—		—		5,815,543
Electronic Equipment, Instruments & Components		19,338,217		—		—		19,338,217
Energy Equipment & Services		9,254,560		—		—		9,254,560
Entertainment		4,812,143		—		—		4,812,143
Equity Real Estate Investment Trusts		52,535,930		—		—		52,535,930
Food & Staples Retailing		4,661,764		—		—		4,661,764
Food Products		9,554,028		—		—		9,554,028

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1			Level 2			Level 3		Total
Gas Utilities	$	9,286,267		$	—		$	—	$	9,286,267
Health Care Equipment & Supplies		29,620,869			—			—		29,620,869
Health Care Providers & Services		15,393,664			—			—		15,393,664
Health Care Technology		9,182,888			—			—		9,182,888
Hotels, Restaurants & Leisure		22,970,498			—			—		22,970,498
Household Durables		11,499,191			—			—		11,499,191
Household Products		1,794,988			—			—		1,794,988
Independent Power and Renewable Electricity Producers		2,878,919			—			—		2,878,919
Industrial Conglomerates		575,349			—			—		575,349
Insurance		22,278,867			—			—		22,278,867
Interactive Media & Services		4,159,027			—			—		4,159,027
Internet & Direct Marketing Retail		7,589,154			—			—		7,589,154
IT Services		15,706,729			—			—		15,706,729
Leisure Products		3,127,282			—			—		3,127,282
Life Sciences Tools & Services		4,060,041			—			—		4,060,041
Machinery		28,874,304			—			—		28,874,304
Marine		911,032			—			—		911,032
Media		11,004,369			—			—		11,004,369
Metals & Mining		9,144,373			—			—		9,144,373
Mortgage Real Estate Investment Trusts		9,130,610			—			—		9,130,610
Multi-Utilities		4,306,265			—			—		4,306,265
Multiline Retail		2,282,538			—			—		2,282,538
Oil, Gas & Consumable Fuels		17,680,096			—			—		17,680,096
Paper & Forest Products		3,374,664			—			—		3,374,664
Personal Products		2,789,823			—			—		2,789,823
Pharmaceuticals		15,039,513			—			—		15,039,513
Professional Services		11,805,507			—			—		11,805,507
Real Estate Management & Development		4,487,438			—			—		4,487,438
Road & Rail		3,451,441			—			—		3,451,441
Semiconductors & Semiconductor Equipment		21,174,419			—			—		21,174,419
Software		42,711,775			—			—		42,711,775
Specialty Retail		23,499,078			—			—		23,499,078
Technology Hardware, Storage & Peripherals		2,129,288			—			—		2,129,288
Textiles, Apparel & Luxury Goods		6,665,851			—			—		6,665,851
Thrifts & Mortgage Finance		17,792,614			—			—		17,792,614
Tobacco		1,209,747			—			—		1,209,747
Trading Companies & Distributors		9,553,529			—			—		9,553,529
Water Utilities		3,739,134			—			—		3,739,134
Wireless Telecommunication Services		1,541,551			—			—		1,541,551
Total Common Stocks		774,441,066			—			—		774,441,066
Total Mutual Fund*		23,780,640			—			—		23,780,640
Total Rights*		—			24,265			37,093		61,358
Total Short-Term Investments*		—			8,287,281			—		8,287,281
Total Securities Lending Reinvestments*		—			166,940,880			—		166,940,880
Total Investments	$	798,221,706		$	175,252,426		$	37,093	$	973,511,225
Collateral for Securities Loaned (Liability)	$	—		$	(166,891,020	)	$	—	$	(166,891,020	)
Futures Contracts Futures Contracts (Unrealized Depreciation)	$	(140,131	)	$	—		$	—	$	(140,131	)

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2018 is not presented.

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	973,511,225
Receivable for:
Investments sold		778,473
Fund shares sold		2,480,690
Dividends		1,420,194
Variation margin on futures contracts		17,015
Prepaid expenses		2,690
Total Assets		978,210,287
Liabilities
Due to custodian		8,371
Collateral for securities loaned		166,891,020
Payables for:
Investments purchased		5,452,015
Fund shares redeemed		418,667
Accrued Expenses:
Management fees		174,589
Distribution and service fees		83,380
Deferred trustees’ fees		111,916
Other expenses		231,228
Total Liabilities		173,371,186
Net Assets	$	804,839,101
Net Assets Consist of:
Paid in surplus	$	574,779,317
Distributable earnings (Accumulated losses)		230,059,784
Net Assets	$	804,839,101
Net Assets
Class A	$	441,456,226
Class B		205,813,862
Class E		21,876,667
Class G		135,692,346
Capital Shares Outstanding*
Class A		24,344,069
Class B		11,652,249
Class E		1,214,898
Class G		7,714,543
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	18.13
Class B		17.66
Class E		18.01
Class G		17.59

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $835,270,543.
(b)	Includes securities loaned at value of $166,928,760.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	11,538,025
Non-cash dividends		925,824
Interest		182,231
Securities lending income		1,661,989
Total investment income		14,308,069
Expenses
Management fees		2,422,681
Administration fees		38,644
Custodian and accounting fees		111,876
Distribution and service fees—Class B		628,032
Distribution and service fees—Class E		41,577
Distribution and service fees—Class G		468,911
Audit and tax services		48,334
Legal		45,316
Trustees’ fees and expenses		33,734
Shareholder reporting		176,084
Insurance		6,208
Miscellaneous		115,368
Total expenses		4,136,765
Less management fee waiver		(23,794	)
Net expenses		4,112,971
Net Investment Income		10,195,098
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		86,242,648
Futures contracts		726,780
Foreign currency transactions		(105	)
Net realized gain		86,969,323
Net change in unrealized depreciation on:
Investments		(191,124,375	)
Futures contracts		(271,123	)
Net change in unrealized depreciation		(191,395,498	)
Net realized and unrealized loss		(104,426,175	)
Net Decrease in Net Assets From Operations	$	(94,231,077	)

(a) Net of foreign withholding taxes of $5,865.

See accompanying notes to financial statements.

BHFTII-24

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	10,195,098		$	10,169,485
Net realized gain		86,969,323			63,371,248
Net change in unrealized appreciation (depreciation)		(191,395,498	)		56,533,733
Increase (decrease) in net assets from operations		(94,231,077	)		130,074,466
From Distributions to Shareholders (a)
Class A		(41,433,317	)		(26,918,576	)
Class B		(19,552,744	)		(12,944,359	)
Class E		(2,137,411	)		(1,425,044	)
Class G		(12,083,917	)		(7,733,615	)
Total distributions		(75,207,389	)		(49,021,594	)
Decrease in net assets from capital share transactions		(10,258,796	)		(29,700,774	)
Total increase (decrease) in net assets		(179,697,262	)		51,352,098
Net Assets
Beginning of period		984,536,363			933,184,265
End of period	$	804,839,101		$	984,536,363	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		2,089,324		$	45,001,947			2,341,690		$	48,037,267
Reinvestments		1,853,840			41,433,317			1,342,573			26,918,576
Redemptions		(4,238,089	)		(93,485,795	)		(4,450,174	)		(91,944,147	)
Net decrease		(294,925	)	$	(7,050,531	)		(765,911	)	$	(16,988,304	)
Class B
Sales		696,527		$	14,021,234			745,990		$	15,024,502
Reinvestments		896,915			19,552,744			660,427			12,944,359
Redemptions		(2,015,203	)		(43,828,289	)		(1,811,625	)		(36,864,871	)
Net decrease		(421,761	)	$	(10,254,311	)		(405,208	)	$	(8,896,010	)
Class E
Sales		146,139		$	3,141,616			135,410		$	2,776,996
Reinvestments		96,236			2,137,411			71,467			1,425,044
Redemptions		(338,328	)		(7,307,187	)		(278,255	)		(5,722,889	)
Net decrease		(95,953	)	$	(2,028,160	)		(71,378	)	$	(1,520,849	)
Class G
Sales		1,216,007		$	25,584,159			1,014,353		$	20,315,522
Reinvestments		556,606			12,083,917			395,986			7,733,615
Redemptions		(1,329,824	)		(28,593,870	)		(1,503,870	)		(30,344,748	)
Net increase (decrease)		442,789		$	9,074,206			(93,531	)	$	(2,295,611	)
Decrease derived from capital shares transactions				$	(10,258,796	)				$	(29,700,774	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(6,289,158	)	$	(20,629,418	)
Class B		(2,591,328	)		(10,353,031	)
Class E		(304,417	)		(1,120,627	)
Class G		(1,512,778	)		(6,220,837	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $9,799,053 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-25

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	21.98		$	20.22		$	17.98		$	20.11		$	19.83
Income (Loss) from Investment Operations
Net investment income (a)		0.26			0.25			0.25	(b)		0.26			0.24
Net realized and unrealized gain (loss)		(2.34	)		2.61			3.33			(0.98	)		0.71
Total income (loss) from investment operations		(2.08	)		2.86			3.58			(0.72	)		0.95
Less Distributions
Distributions from net investment income		(0.25	)		(0.26	)		(0.26	)		(0.25	)		(0.23	)
Distributions from net realized capital gains		(1.52	)		(0.84	)		(1.08	)		(1.16	)		(0.44	)
Total distributions		(1.77	)		(1.10	)		(1.34	)		(1.41	)		(0.67	)
Net Asset Value, End of Period	$	18.13		$	21.98		$	20.22		$	17.98		$	20.11
Total Return (%) (c)		(10.97	)		14.67			21.28			(4.27	)		5.04
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.31			0.31			0.31			0.31			0.32
Net ratio of expenses to average net assets (%) (d)		0.31			0.31			0.31			0.31			0.31
Ratio of net investment income to average net assets (%)		1.17			1.19			1.40	(b)		1.35			1.26
Portfolio turnover rate (%)		26			20			24			27			24
Net assets, end of period (in millions)	$	441.5		$	541.5		$	513.7		$	459.0		$	488.3
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	21.45		$	19.76		$	17.60		$	19.71		$	19.45
Income (Loss) from Investment Operations
Net investment income (a)		0.20			0.19			0.20	(b)		0.21			0.19
Net realized and unrealized gain (loss)		(2.27	)		2.55			3.25			(0.96	)		0.69
Total income (loss) from investment operations		(2.07	)		2.74			3.45			(0.75	)		0.88
Less Distributions
Distributions from net investment income		(0.20	)		(0.21	)		(0.21	)		(0.20	)		(0.18	)
Distributions from net realized capital gains		(1.52	)		(0.84	)		(1.08	)		(1.16	)		(0.44	)
Total distributions		(1.72	)		(1.05	)		(1.29	)		(1.36	)		(0.62	)
Net Asset Value, End of Period	$	17.66		$	21.45		$	19.76		$	17.60		$	19.71
Total Return (%) (c)		(11.18	)		14.39			20.96			(4.49	)		4.78
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.56			0.56			0.56			0.56			0.57
Net ratio of expenses to average net assets (%) (d)		0.56			0.56			0.56			0.56			0.56
Ratio of net investment income to average net assets (%)		0.92			0.94			1.15	(b)		1.10			1.01
Portfolio turnover rate (%)		26			20			24			27			24
Net assets, end of period (in millions)	$	205.8		$	259.0		$	246.6		$	220.8		$	240.2

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-26

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	21.84		$	20.10		$	17.88		$	20.00		$	19.72
Income (Loss) from Investment Operations															��
Net investment income (a)		0.22			0.21			0.22	(b)		0.23			0.21
Net realized and unrealized gain (loss)		(2.31	)		2.60			3.31			(0.98	)		0.71
Total income (loss) from investment operations		(2.09	)		2.81			3.53			(0.75	)		0.92
Less Distributions
Distributions from net investment income		(0.22	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)
Distributions from net realized capital gains		(1.52	)		(0.84	)		(1.08	)		(1.16	)		(0.44	)
Total distributions		(1.74	)		(1.07	)		(1.31	)		(1.37	)		(0.64	)
Net Asset Value, End of Period	$	18.01		$	21.84		$	20.10		$	17.88		$	20.00
Total Return (%) (c)		(11.08	)		14.50			21.09			(4.39	)		4.91
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.46			0.46			0.46			0.46			0.47
Net ratio of expenses to average net assets (%) (d)		0.46			0.46			0.46			0.46			0.46
Ratio of net investment income to average net assets (%)		1.01			1.04			1.25	(b)		1.19			1.10
Portfolio turnover rate (%)		26			20			24			27			24
Net assets, end of period (in millions)	$	21.9		$	28.6		$	27.8		$	25.0		$	28.7
	Class G
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	21.37		$	19.70		$	17.54		$	19.65		$	19.40
Income (Loss) from Investment Operations
Net investment income (a)		0.19			0.18			0.19	(b)		0.20			0.18
Net realized and unrealized gain (loss)		(2.26	)		2.54			3.24			(0.96	)		0.69
Total income (loss) from investment operations		(2.07	)		2.72			3.43			(0.76	)		0.87
Less Distributions
Distributions from net investment income		(0.19	)		(0.21	)		(0.19	)		(0.19	)		(0.18	)
Distributions from net realized capital gains		(1.52	)		(0.84	)		(1.08	)		(1.16	)		(0.44	)
Total distributions		(1.71	)		(1.05	)		(1.27	)		(1.35	)		(0.62	)
Net Asset Value, End of Period	$	17.59		$	21.37		$	19.70		$	17.54		$	19.65
Total Return (%) (c)		(11.20	)		14.30			20.92			(4.54	)		4.73
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.61			0.61			0.61			0.61			0.62
Net ratio of expenses to average net assets (%) (d)		0.61			0.61			0.61			0.61			0.61
Ratio of net investment income to average net assets (%)		0.88			0.89			1.10	(b)		1.04			0.96
Portfolio turnover rate (%)		26			20			24			27			24
Net assets, end of period (in millions)	$	135.7		$	155.4		$	145.1		$	131.0		$	144.7

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.02% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-27

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Russell 2000 Index Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-28

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Due to Custodian - Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the

BHFTII-29

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

current rate of interest charged by the Custodian for secured loans (currently, the federal funds rate plus 2%). This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio’s assets to the extent of any overdraft. At December 31, 2018, the Portfolio had a payment of $8,371 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2018. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2018. The Portfolio’s average overdraft advances during the year ended December 31, 2018 were not significant.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $29,509,738. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

BHFTII-30

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(148,697,481	)	$	—	$	—	$	—	$	(148,697,481	)
Mutual Funds		(18,193,539	)		—		—		—		(18,193,539	)
Total	$	(166,891,020	)	$	—	$	—	$	—	$	(166,891,020	)
Total Borrowings	$	(166,891,020	)	$	—	$	—	$	—	$	(166,891,020	)
Gross amount of recognized liabilities for securities lending transactions										$	(166,891,020	)

3. Investments in Derivative Instruments

Futures Contracts -The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value
Equity	Unrealized depreciation on futures contracts (a)	$	140,131

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Equity
Futures contracts	$	726,780
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Equity
Futures contracts	$	(271,123	)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Futures contracts long	$	7,706

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

BHFTII-31

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	242,730,226	$	0	$	290,966,621

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2018 were $2,422,681.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Advisors, LLC (“MIA”) with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIA an investment subadvisory fee for each class of the Portfolio as follows:

% per annum	Average daily net assets
0.040%	On the first $500 million
0.030%	Of the next $500 million
0.015%	On amounts over $1 billion

BHFTII-32

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Fees earned by MIA with respect to the Portfolio for the year ended December 31, 2018 were $339,716.

Management Fee Waiver- Pursuant to a management fee waiver agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average daily net assets
0.005%	Over $500 million and under $1 billion
0.010%	Of the next $1 billion
0.015%	On amounts over $2 billion

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees- The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class E and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.15% of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	839,875,116
Gross unrealized appreciation		229,879,910
Gross unrealized depreciation		(96,243,801	)
Net unrealized appreciation (depreciation)	$	133,636,109

BHFTII-33

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$17,802,707	$	10,697,682	$	57,404,682	$	38,323,913	$	75,207,389	$	49,021,595

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$10,052,786	$	86,482,802	$	133,636,109	$	—	$	230,171,697

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-34

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MetLife Russell 2000 Index Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Russell 2000 Index Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Russell 2000 Index Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-35

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-36

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-37

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-38

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-39

Brighthouse Funds Trust II

MetLife Russell 2000 Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MetLife Russell 2000 Index Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Index, for the five-year period ended September 30, 2018, and underperformed its benchmark for theone-year and three-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, the Expense Universe median, and theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-40

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Managed by MetLife Investment Advisors, LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, D, E, and G shares of the MetLife Stock Index Portfolio returned-4.60%,-4.83%,-4.69%,-4.72%, and-4.89%, respectively. The Portfolio’s benchmark, the Standard & Poor’s (“S&P”) 500 Index¹, returned-4.38%.

MARKET ENVIRONMENT / CONDITIONS

Equity markets ended the period down with outperformance in the middle of the year bracketed by underperformance during the first and fourth quarters. The main concerns during the year were slowing global growth, political unrest in Europe, a more hawkish Federal Reserve (the “Fed”), and continued fears about a global trade war. Equity markets were impacted as the10-year Treasury yield reached its highest level since 2014, which was driven by a more hawkish Fed and higher than expected wage growth. Equity markets also feared the impact of President Trump’s plan to impose tariffs on steel and aluminum imports and Fed Chair Powell’s Congressional testimony during the first quarter where he hinted at the possibility of four rate hikes during the year. Other issues equity investors were concerned about included unrest in the Middle East, political uncertainty in Italy and the U.S. withdrawal from the Iran nuclear deal. In the middle of the year, equity markets rallied as trade negotiations eased concerns of a global trade war and leaders of North and South Korea met for the first time since 2007. Equity markets also reacted favorably after Fed Chair Powell made dovish comments in the third quarter during the Jackson Hole symposium and progress was made with trade negotiations with the European Union and the North American Free Trade Agreement. Equity markets underperformed again towards the end of the year on concerns about a weakening global economy, the partial U.S. government shut-down, and continued uncertainty surrounding Brexit.

During the year, the Federal Open Market Committee (the “FOMC”) met eight times and raised the target for the Federal Funds Rate four times from a range of 1.25%—1.50% to a range of 2.25%—2.50%. The FOMC stated that the labor market had continued to strengthen, and that economic activity had been rising at a strong rate. The FOMC also stated that job gains had been strong, and the unemployment rate had remained low.

Three of the eleven sectors comprising the S&P 500 Index experienced positive returns for the year. Health Care (13.7% beginning weight in the benchmark), up 6.5%, was the best-performing sector and had the largest positive impact on the portfolio return. Utilities (2.9% beginning weight), up 4.1%; and Consumer Discretionary (12.2% beginning weight), up 0.8%, were the next best-performing sectors. Energy (6.1% beginning weight), down 18.1%; Communication Services (2.1% beginning weight), down 14.7%; and Materials (3.0% beginning weight), down 14.6%, were the worst-performing sectors.

The stocks in the S&P 500 Index with the largest positive impact on the Portfolio return for the year were Merck, up 40.0%; Amazon, up 28.4%; and Microsoft, up 20.8% (all three were held throughout the entire year). The stocks with the largest negative impact were General Electric, down 55.4%; Facebook, down 25.7%; and Wells Fargo, down 21.8% (all three were held throughout the entire year).

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio is managed utilizing a full replication strategy versus the S&P 500 Index. This strategy seeks to replicate the performance of the Index by owning all of the components of the Index at their respective Index capitalization weights. The Portfolio is periodically rebalanced for compositional changes in the S&P 500 Index. Factors that impact tracking error include transaction costs, cash drag, securities lending activity, Net Asset Value rounding, contributions and withdrawals.

Stacey Lituchy

Norman Hu

Mirsad Usejnoski

Portfolio Managers

MetLife Investment Advisors, LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
MetLife Stock Index Portfolio
Class A		-4.60		8.23		12.85		—
Class B		-4.83		7.96		12.57		—
Class D		-4.69		8.12		—		13.72
Class E		-4.72		8.07		12.68		—
Class G		-4.89		—		—		6.75
S&P 500 Index		-4.38		8.50		13.12		—

¹ The S&P 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-weighted index (stock price times number of shares outstanding) with each stock’s weight in the Index proportionate to its market value.

² Inception dates of the Class A, Class B, Class D, Class E and Class G shares are 5/1/90, 1/2/01, 4/28/09, 5/1/01 and 11/12/14, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Microsoft Corp.		3.7
Apple, Inc.		3.3
Amazon.com, Inc.		2.9
Berkshire Hathaway, Inc. - Class B		1.9
Johnson & Johnson		1.6
JPMorgan Chase & Co.		1.5
Alphabet, Inc. - Class C		1.5
Facebook, Inc. - Class A		1.5
Alphabet, Inc. - Class A		1.5
Exxon Mobil Corp.		1.4

Top Sectors

	% of Net Assets
Information Technology		19.8
Health Care		15.3
Financials		14.1
Communication Services		10.0
Consumer Discretionary		9.8
Industrials		9.0
Consumer Staples		7.3
Energy		5.2
Utilities		3.3
Real Estate		2.9

BHFTII-2

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MetLife Stock Index Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.26	%	$	1,000.00	$	930.70	$	1.27
	Hypothetical*		0.26	%	$	1,000.00	$	1,023.90	$	1.33
Class B (a)	Actual		0.51	%	$	1,000.00	$	929.50	$	2.48
	Hypothetical*		0.51	%	$	1,000.00	$	1,022.64	$	2.60
Class D (a)	Actual		0.36	%	$	1,000.00	$	930.10	$	1.75
	Hypothetical*		0.36	%	$	1,000.00	$	1,023.39	$	1.84
Class E (a)	Actual		0.41	%	$	1,000.00	$	930.00	$	1.99
	Hypothetical*		0.41	%	$	1,000.00	$	1,023.14	$	2.09
Class G (a)	Actual		0.56	%	$	1,000.00	$	929.10	$	2.72
	Hypothetical*		0.56	%	$	1,000.00	$	1,022.38	$	2.85

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—98.4% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—2.5%
Arconic, Inc.		122,407	$	2,063,782
Boeing Co. (The)		150,313		48,475,942
General Dynamics Corp.		79,231		12,455,905
Harris Corp. (a)		33,487		4,509,025
Huntington Ingalls Industries, Inc.		12,225		2,326,540
L3 Technologies, Inc.		22,399		3,889,810
Lockheed Martin Corp.		70,428		18,440,868
Northrop Grumman Corp.		49,415		12,101,733
Raytheon Co.		80,994		12,420,430
Textron, Inc.		69,149		3,180,163
TransDigm Group, Inc. (a) (b)		13,812		4,696,909
United Technologies Corp.		230,986		24,595,389
				149,156,496
Air Freight & Logistics—0.6%
C.H. Robinson Worldwide, Inc. (a)		39,135		3,290,862
Expeditors International of Washington, Inc. (a)		49,121		3,344,649
FedEx Corp. (a)		69,000		11,131,770
United Parcel Service, Inc. - Class B		197,866		19,297,871
				37,065,152
Airlines—0.4%
Alaska Air Group, Inc. (a)		35,092		2,135,348
American Airlines Group, Inc. (a)		116,667		3,746,177
Delta Air Lines, Inc.		177,573		8,860,893
Southwest Airlines Co.		144,035		6,694,747
United Continental Holdings, Inc. (b)		65,139		5,454,089
				26,891,254
Auto Components—0.1%
Aptiv plc		74,987		4,616,950
BorgWarner, Inc.		59,277		2,059,283
Goodyear Tire & Rubber Co. (The)		66,317		1,353,530
				8,029,763
Automobiles—0.4%
Ford Motor Co. (a)		1,111,994		8,506,754
General Motors Co.		373,583		12,496,352
Harley-Davidson, Inc.		46,344		1,581,257
				22,584,363
Banks—5.6%
Bank of America Corp. (a)		2,597,714		64,007,673
BB&T Corp. (a)		219,327		9,501,246
Citigroup, Inc.		695,062		36,184,928
Citizens Financial Group, Inc.		133,173		3,959,233
Comerica, Inc.		46,021		3,161,182
Fifth Third Bancorp		186,596		4,390,604
First Republic Bank		46,612		4,050,583
Huntington Bancshares, Inc. (a)		302,124		3,601,318
JPMorgan Chase & Co.		946,453		92,392,742
KeyCorp		294,439		4,351,808
M&T Bank Corp. (a)		39,948		5,717,757
People’s United Financial, Inc. (a)		107,426		1,550,157
PNC Financial Services Group, Inc. (The)		131,327		15,353,440
Banks—(Continued)
Regions Financial Corp.		294,252		3,937,092
SunTrust Banks, Inc.		127,872		6,449,864
SVB Financial Group (b)		15,156		2,878,427
U.S. Bancorp		432,362		19,758,943
Wells Fargo & Co.		1,205,765		55,561,651
Zions Bancorp N.A.		54,698		2,228,397
				339,037,045
Beverages—1.9%
Brown-Forman Corp. - Class B (a)		47,328		2,251,866
Coca-Cola Co. (The)		1,090,310		51,626,179
Constellation Brands, Inc. - Class A		47,285		7,604,374
Molson Coors Brewing Co. - Class B		53,308		2,993,777
Monster Beverage Corp. (b)		113,313		5,577,266
PepsiCo, Inc.		401,750		44,385,340
				114,438,802
Biotechnology—2.6%
AbbVie, Inc. (a)		428,118		39,468,198
Alexion Pharmaceuticals, Inc. (b)		63,496		6,181,971
Amgen, Inc.		181,361		35,305,546
Biogen, Inc. (a) (b)		57,345		17,256,257
Celgene Corp. (b)		199,015		12,754,871
Gilead Sciences, Inc.		368,180		23,029,659
Incyte Corp. (a) (b)		50,271		3,196,733
Regeneron Pharmaceuticals, Inc. (b)		22,091		8,250,989
Vertex Pharmaceuticals, Inc. (b)		72,735		12,052,917
				157,497,141
Building Products—0.3%
A.O. Smith Corp.		40,952		1,748,650
Allegion plc (a)		27,054		2,156,474
Fortune Brands Home & Security, Inc.		40,245		1,528,908
Johnson Controls International plc		262,998		7,797,891
Masco Corp.		86,948		2,542,360
				15,774,283
Capital Markets—2.7%
Affiliated Managers Group, Inc.		14,991		1,460,723
Ameriprise Financial, Inc.		39,662		4,139,523
Bank of New York Mellon Corp. (The)		258,904		12,186,611
BlackRock, Inc.		34,563		13,577,038
Cboe Global Markets, Inc.		31,934		3,124,103
Charles Schwab Corp. (The)		342,076		14,206,416
CME Group, Inc. (a)		101,827		19,155,695
E*Trade Financial Corp.		72,359		3,175,113
Franklin Resources, Inc. (a)		84,699		2,512,172
Goldman Sachs Group, Inc. (The)		98,458		16,447,409
Intercontinental Exchange, Inc.		162,110		12,211,746
Invesco, Ltd. (a)		117,071		1,959,769
Moody’s Corp. (a)		47,443		6,643,918
Morgan Stanley		372,078		14,752,893
MSCI, Inc.		25,055		3,693,859
Nasdaq, Inc.		32,665		2,664,484
Northern Trust Corp.		63,012		5,267,173

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Capital Markets—(Continued)
Raymond James Financial, Inc.		36,702	$	2,730,996
S&P Global, Inc.		71,409		12,135,245
State Street Corp.		108,020		6,812,821
T. Rowe Price Group, Inc. (a)		68,493		6,323,274
				165,180,981
Chemicals—2.1%
Air Products & Chemicals, Inc.		62,482		10,000,244
Albemarle Corp. (a)		30,227		2,329,595
Celanese Corp. (a)		38,069		3,425,068
CF Industries Holdings, Inc.		65,685		2,857,954
DowDuPont, Inc.		652,970		34,920,836
Eastman Chemical Co.		39,857		2,913,945
Ecolab, Inc.		72,351		10,660,920
FMC Corp.		38,325		2,834,517
International Flavors & Fragrances, Inc. (a)		28,828		3,870,736
Linde plc		156,837		24,472,845
LyondellBasell Industries NV - Class A		89,539		7,446,063
Mosaic Co. (The)		100,932		2,948,224
PPG Industries, Inc. (a)		68,274		6,979,651
Sherwin-Williams Co. (The)		23,450		9,226,637
				124,887,235
Commercial Services & Supplies—0.4%
Cintas Corp.		24,643		4,139,777
Copart, Inc. (b)		58,611		2,800,434
Republic Services, Inc. (a)		61,892		4,461,794
Rollins, Inc. (a)		41,920		1,513,312
Waste Management, Inc.		111,636		9,934,488
				22,849,805
Communications Equipment—1.1%
Arista Networks, Inc. (b)		14,813		3,121,099
Cisco Systems, Inc.		1,279,606		55,445,328
F5 Networks, Inc. (b)		17,255		2,795,827
Juniper Networks, Inc.		98,235		2,643,504
Motorola Solutions, Inc.		46,542		5,354,192
				69,359,950
Construction & Engineering—0.1%
Fluor Corp.		40,035		1,289,127
Jacobs Engineering Group, Inc.		34,028		1,989,277
Quanta Services, Inc. (a)		41,562		1,251,016
				4,529,420
Construction Materials—0.1%
Martin Marietta Materials, Inc. (a)		17,849		3,067,708
Vulcan Materials Co. (a)		37,582		3,713,101
				6,780,809
Consumer Finance—0.6%
American Express Co. (a)		199,369		19,003,853
Capital One Financial Corp.		134,808		10,190,137
Discover Financial Services		95,619		5,639,608
Consumer Finance—(Continued)
Synchrony Financial		188,195		4,415,055
				39,248,653
Containers & Packaging—0.3%
Avery Dennison Corp.		24,679		2,216,914
Ball Corp. (a)		96,537		4,438,771
International Paper Co.		115,275		4,652,499
Packaging Corp. of America		26,895		2,244,657
Sealed Air Corp. (a)		44,662		1,556,024
WestRock Co.		72,164		2,724,913
				17,833,778
Distributors—0.1%
Genuine Parts Co.		41,769		4,010,659
LKQ Corp. (a) (b)		90,564		2,149,084
				6,159,743
Diversified Consumer Services—0.0%
H&R Block, Inc. (a)		58,495		1,484,018
Diversified Financial Services—1.9%
Berkshire Hathaway, Inc. - Class B (b)		553,683		113,050,995
Jefferies Financial Group, Inc. (a)		79,996		1,388,730
				114,439,725
Diversified Telecommunication Services—2.1%
AT&T, Inc. (a)		2,071,408		59,117,984
CenturyLink, Inc. (a)		270,660		4,100,499
Verizon Communications, Inc.		1,176,022		66,115,957
				129,334,440
Electric Utilities—2.0%
Alliant Energy Corp. (a)		67,150		2,837,088
American Electric Power Co., Inc.		140,345		10,489,385
Duke Energy Corp.		202,894		17,509,752
Edison International (a)		92,729		5,264,225
Entergy Corp.		51,555		4,437,339
Evergy, Inc.		74,982		4,256,728
Eversource Energy (a)		90,189		5,865,893
Exelon Corp.		275,222		12,412,512
FirstEnergy Corp. (a)		138,285		5,192,602
NextEra Energy, Inc. (a)		136,029		23,644,561
PG&E Corp. (b)		147,621		3,505,999
Pinnacle West Capital Corp.		31,899		2,717,795
PPL Corp.		204,977		5,806,998
Southern Co. (The)		292,834		12,861,269
Xcel Energy, Inc. (a)		146,297		7,208,053
				124,010,199
Electrical Equipment—0.5%
AMETEK, Inc.		66,063		4,472,465
Eaton Corp. plc		123,351		8,469,280
Emerson Electric Co.		178,212		10,648,167
Rockwell Automation, Inc. (a)		34,348		5,168,687
				28,758,599

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Electronic Equipment, Instruments & Components—0.5%
Amphenol Corp. - Class A		85,761	$	6,948,356
Corning, Inc.		227,803		6,881,929
FLIR Systems, Inc.		39,375		1,714,387
IPG Photonics Corp. (a) (b)		10,183		1,153,632
Keysight Technologies, Inc. (b)		53,344		3,311,595
TE Connectivity, Ltd.		97,631		7,383,833
				27,393,732
Energy Equipment & Services—0.5%
Baker Hughes a GE Co. (a)		146,116		3,141,494
Halliburton Co. (a)		249,333		6,627,271
Helmerich & Payne, Inc.		31,033		1,487,722
National Oilwell Varco, Inc. (a)		109,110		2,804,127
Schlumberger, Ltd.		394,131		14,220,247
TechnipFMC plc (a)		121,095		2,371,040
				30,651,901
Entertainment—2.0%
Activision Blizzard, Inc. (a)		217,173		10,113,747
Electronic Arts, Inc. (b)		85,989		6,785,392
Netflix, Inc. (a) (b)		124,115		33,220,621
Take-Two Interactive Software, Inc. (a) (b)		32,409		3,336,182
Twenty-First Century Fox, Inc. - Class A		300,827		14,475,795
Twenty-First Century Fox, Inc. - Class B		138,634		6,623,933
Viacom, Inc. - Class B		100,592		2,585,214
Walt Disney Co. (The) (a)		423,694		46,458,047
				123,598,931
Equity Real Estate Investment Trusts—2.9%
Alexandria Real Estate Equities, Inc.		30,604		3,526,805
American Tower Corp.		125,368		19,831,964
Apartment Investment & Management Co. - Class A		44,298		1,943,796
AvalonBay Communities, Inc.		39,340		6,847,127
Boston Properties, Inc.		43,956		4,947,248
Crown Castle International Corp.		118,071		12,826,053
Digital Realty Trust, Inc. (a)		58,710		6,255,550
Duke Realty Corp.		101,982		2,641,334
Equinix, Inc.		22,880		8,066,573
Equity Residential		104,862		6,921,941
Essex Property Trust, Inc.		18,803		4,610,684
Extra Space Storage, Inc.		36,008		3,258,004
Federal Realty Investment Trust		21,022		2,481,437
HCP, Inc.		135,898		3,795,631
Host Hotels & Resorts, Inc.		211,200		3,520,704
Iron Mountain, Inc. (a)		81,461		2,640,151
Kimco Realty Corp. (a)		119,933		1,757,018
Macerich Co. (The) (a)		30,108		1,303,074
Mid-America Apartment Communities, Inc.		32,400		3,100,680
Prologis, Inc. (a)		179,172		10,520,980
Public Storage		42,679		8,638,656
Realty Income Corp. (a)		83,993		5,294,919
Regency Centers Corp.		48,225		2,829,843
SBA Communications Corp. (b)		32,253		5,221,438
Simon Property Group, Inc.		88,030		14,788,160
SL Green Realty Corp.		24,269		1,919,193
UDR, Inc.		78,423		3,107,119
Equity Real Estate Investment Trusts—(Continued)
Ventas, Inc.		101,455		5,944,248
Vornado Realty Trust		49,283		3,057,024
Welltower, Inc.		106,913		7,420,831
Weyerhaeuser Co.		213,231		4,661,230
				173,679,415
Food & Staples Retailing—1.5%
Costco Wholesale Corp.		124,720		25,406,711
Kroger Co. (The) (a)		227,120		6,245,800
Sysco Corp.		136,103		8,528,214
Walgreens Boots Alliance, Inc. (a)		228,806		15,634,314
Walmart, Inc.		405,167		37,741,306
				93,556,345
Food Products—1.1%
Archer-Daniels-Midland Co.		159,566		6,537,419
Campbell Soup Co. (a)		54,833		1,808,941
Conagra Brands, Inc.		138,211		2,952,187
General Mills, Inc. (a)		169,694		6,607,884
Hershey Co. (The)		39,913		4,277,875
Hormel Foods Corp. (a)		77,597		3,311,840
J.M. Smucker Co. (The) (a)		32,377		3,026,926
Kellogg Co. (a)		72,099		4,110,364
Kraft Heinz Co. (The) (a)		177,003		7,618,209
Lamb Weston Holdings, Inc.		41,683		3,066,201
McCormick & Co., Inc. (a)		34,657		4,825,641
Mondelez International, Inc. - Class A		413,779		16,563,573
Tyson Foods, Inc. - Class A		83,989		4,485,013
				69,192,073
Health Care Equipment & Supplies—3.3%
Abbott Laboratories		499,874		36,155,886
ABIOMED, Inc. (b)		12,819		4,166,688
Align Technology, Inc. (a) (b)		20,716		4,338,552
Baxter International, Inc.		140,852		9,270,879
Becton Dickinson & Co.		76,350		17,203,182
Boston Scientific Corp. (b)		393,846		13,918,518
Cooper Cos., Inc. (The) (a)		13,986		3,559,437
Danaher Corp.		175,547		18,102,407
DENTSPLY SIRONA, Inc.		63,339		2,356,844
Edwards Lifesciences Corp. (b)		59,498		9,113,309
Hologic, Inc. (b)		76,674		3,151,301
IDEXX Laboratories, Inc. (a) (b)		24,543		4,565,489
Intuitive Surgical, Inc. (b)		32,503		15,566,337
Medtronic plc		382,247		34,769,187
ResMed, Inc.		40,557		4,618,225
Stryker Corp.		88,394		13,855,759
Varian Medical Systems, Inc. (b)		25,933		2,938,468
Zimmer Biomet Holdings, Inc. (a)		58,054		6,021,361
				203,671,829
Health Care Providers & Services—3.1%
AmerisourceBergen Corp. (a)		44,636		3,320,919
Anthem, Inc.		73,613		19,332,982
Cardinal Health, Inc.		84,797		3,781,946

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Health Care Providers & Services—(Continued)
Centene Corp. (b)		58,447	$	6,738,939
Cigna Corp.		108,375		20,582,563
CVS Health Corp.		368,060		24,115,291
DaVita, Inc. (b)		35,903		1,847,568
HCA Healthcare, Inc.		76,403		9,508,353
Henry Schein, Inc. (a) (b)		43,385		3,406,590
Humana, Inc.		39,045		11,185,612
Laboratory Corp. of America Holdings (b)		28,717		3,628,680
McKesson Corp.		55,606		6,142,795
Quest Diagnostics, Inc. (a)		38,728		3,224,881
UnitedHealth Group, Inc.		273,807		68,210,800
Universal Health Services, Inc. - Class B (a)		24,265		2,828,328
WellCare Health Plans, Inc. (a) (b)		14,229		3,359,325
				191,215,572
Health Care Technology—0.1%
Cerner Corp. (b)		93,776		4,917,613
Hotels, Restaurants & Leisure—1.8%
Carnival Corp.		113,960		5,618,228
Chipotle Mexican Grill, Inc. (a) (b)		6,960		3,005,258
Darden Restaurants, Inc.		35,323		3,527,355
Hilton Worldwide Holdings, Inc.		84,407		6,060,423
Marriott International, Inc. - Class A (a)		80,584		8,748,199
McDonald’s Corp.		219,411		38,960,811
MGM Resorts International (a)		142,544		3,458,118
Norwegian Cruise Line Holdings, Ltd. (b)		62,607		2,653,911
Royal Caribbean Cruises, Ltd.		48,776		4,769,805
Starbucks Corp.		353,090		22,738,996
Wynn Resorts, Ltd.		27,854		2,755,039
Yum! Brands, Inc. (a)		88,885		8,170,309
				110,466,452
Household Durables—0.3%
DR Horton, Inc.		97,454		3,377,756
Garmin, Ltd.		34,391		2,177,638
Leggett & Platt, Inc. (a)		37,118		1,330,309
Lennar Corp. - Class A (a)		83,260		3,259,629
Mohawk Industries, Inc. (a) (b)		17,950		2,099,432
Newell Brands, Inc. (a)		122,228		2,272,218
PulteGroup, Inc.		73,541		1,911,331
Whirlpool Corp.		18,161		1,940,866
				18,369,179
Household Products—1.7%
Church & Dwight Co., Inc. (a)		70,081		4,608,527
Clorox Co. (The) (a)		36,331		5,600,060
Colgate-Palmolive Co.		246,849		14,692,453
Kimberly-Clark Corp.		98,562		11,230,154
Procter & Gamble Co. (The)		709,085		65,179,093
				101,310,287
Independent Power and Renewable Electricity Producers—0.1%
AES Corp. (a)		188,497		2,725,667
NRG Energy, Inc.		82,517		3,267,673
				5,993,340
Industrial Conglomerates—1.4%
3M Co.		165,726		31,577,432
General Electric Co.		2,475,590		18,740,216
Honeywell International, Inc.		210,695		27,837,023
Roper Technologies, Inc.		29,438		7,845,816
				86,000,487
Insurance—2.3%
Aflac, Inc.		216,669		9,871,440
Allstate Corp. (The)		98,032		8,100,384
American International Group, Inc. (a)		251,781		9,922,689
Aon plc		68,547		9,963,992
Arthur J. Gallagher & Co.		52,269		3,852,225
Assurant, Inc.		14,835		1,326,842
Brighthouse Financial, Inc. (a) (b) (c)		33,755		1,028,852
Chubb, Ltd.		131,151		16,942,086
Cincinnati Financial Corp. (a)		43,075		3,334,867
Everest Re Group, Ltd. (a)		11,569		2,519,266
Hartford Financial Services Group, Inc. (The)		102,100		4,538,345
Lincoln National Corp.		60,794		3,119,340
Loews Corp.		78,691		3,582,014
Marsh & McLennan Cos., Inc.		143,361		11,433,040
MetLife, Inc. (a) (c)		280,866		11,532,358
Principal Financial Group, Inc.		74,919		3,309,172
Progressive Corp. (The)		165,957		10,012,186
Prudential Financial, Inc.		117,545		9,585,795
Torchmark Corp.		29,206		2,176,723
Travelers Cos., Inc. (The)		75,389		9,027,833
Unum Group		62,258		1,829,140
Willis Towers Watson plc (a)		36,982		5,616,087
				142,624,676
Interactive Media & Services—4.5%
Alphabet, Inc. - Class A (b)		85,091		88,916,691
Alphabet, Inc. - Class C (b) (d)		87,565		90,683,190
Facebook, Inc. - Class A (b)		683,772		89,635,671
TripAdvisor, Inc. (b)		29,141		1,571,866
Twitter, Inc. (a) (b)		205,828		5,915,497
				276,722,915
Internet & Direct Marketing Retail—3.4%
Amazon.com, Inc. (b)		116,900		175,580,293
Booking Holdings, Inc. (b)		13,187		22,713,553
eBay, Inc. (b)		257,590		7,230,551
Expedia Group, Inc. (a)		33,718		3,798,333
				209,322,730
IT Services—4.7%
Accenture plc - Class A		181,426		25,582,880
Akamai Technologies, Inc. (b)		46,353		2,831,241
Alliance Data Systems Corp. (a)		13,334		2,001,167
Automatic Data Processing, Inc.		124,584		16,335,454
Broadridge Financial Solutions, Inc.		33,229		3,198,291
Cognizant Technology Solutions Corp. - Class A		164,798		10,461,377
DXC Technology Co.		79,723		4,238,872
Fidelity National Information Services, Inc.		93,207		9,558,378

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
IT Services—(Continued)
Fiserv, Inc. (b)		113,409	$	8,334,427
FleetCor Technologies, Inc. (a) (b)		25,238		4,687,201
Gartner, Inc. (a) (b)		25,869		3,307,093
Global Payments, Inc. (a)		45,029		4,643,841
International Business Machines Corp. (a)		258,654		29,401,200
Jack Henry & Associates, Inc.		22,000		2,783,440
MasterCard, Inc. - Class A		258,607		48,786,210
Paychex, Inc. (a)		90,957		5,925,849
PayPal Holdings, Inc. (b)		335,375		28,201,684
Total System Services, Inc.		47,771		3,883,305
VeriSign, Inc. (b)		30,278		4,489,925
Visa, Inc. - Class A (a)		500,133		65,987,548
Western Union Co. (The) (a)		126,028		2,150,038
				286,789,421
Leisure Products—0.1%
Hasbro, Inc. (a)		33,125		2,691,406
Mattel, Inc. (a) (b)		98,234		981,358
				3,672,764
Life Sciences Tools & Services—1.0%
Agilent Technologies, Inc.		90,725		6,120,308
Illumina, Inc. (b)		41,838		12,548,471
IQVIA Holdings, Inc. (b)		45,093		5,238,454
Mettler-Toledo International, Inc. (a) (b)		7,129		4,032,020
PerkinElmer, Inc. (a)		31,660		2,486,893
Thermo Fisher Scientific, Inc.		114,578		25,641,411
Waters Corp. (a) (b)		21,558		4,066,917
				60,134,474
Machinery—1.5%
Caterpillar, Inc.		167,952		21,341,661
Cummins, Inc.		42,042		5,618,493
Deere & Co.		91,552		13,656,812
Dover Corp. (a)		41,648		2,954,926
Flowserve Corp. (a)		37,243		1,415,979
Fortive Corp. (a)		83,644		5,659,353
Illinois Tool Works, Inc.		86,880		11,006,827
Ingersoll-Rand plc		69,917		6,378,528
PACCAR, Inc. (a)		99,453		5,682,744
Parker-Hannifin Corp.		37,668		5,617,805
Pentair plc (a)		45,456		1,717,328
Snap-on, Inc. (a)		15,848		2,302,556
Stanley Black & Decker, Inc.		42,994		5,148,101
Xylem, Inc.		51,149		3,412,661
				91,913,774
Media—1.3%
CBS Corp. - Class B (a)		95,829		4,189,644
Charter Communications, Inc. - Class A (b)		50,168		14,296,375
Comcast Corp. - Class A		1,292,157		43,997,946
Discovery, Inc. - Class A (a) (b)		44,610		1,103,651
Discovery, Inc. - Class C (a) (b)		102,530		2,366,392
DISH Network Corp. - Class A (b)		65,244		1,629,143
Interpublic Group of Cos., Inc. (The) (a)		109,391		2,256,736
Media—(Continued)
News Corp. - Class A (a)		109,636		1,244,369
News Corp. - Class B (a)		35,226		406,860
Omnicom Group, Inc. (a)		63,783		4,671,467
				76,162,583
Metals & Mining—0.2%
Freeport-McMoRan, Inc. (a)		412,412		4,251,968
Newmont Mining Corp. (a)		151,601		5,252,974
Nucor Corp. (a)		89,349		4,629,172
				14,134,114
Multi-Utilities—1.1%
Ameren Corp.		69,529		4,535,377
CenterPoint Energy, Inc.		142,645		4,026,868
CMS Energy Corp.		80,639		4,003,726
Consolidated Edison, Inc.		88,650		6,778,179
Dominion Energy, Inc. (a)		186,840		13,351,586
DTE Energy Co. (a)		51,778		5,711,113
NiSource, Inc. (a)		103,396		2,621,089
Public Service Enterprise Group, Inc.		143,857		7,487,757
SCANA Corp.		40,591		1,939,438
Sempra Energy (a)		77,887		8,426,595
WEC Energy Group, Inc. (a)		89,802		6,219,687
				65,101,415
Multiline Retail—0.5%
Dollar General Corp. (a)		74,820		8,086,546
Dollar Tree, Inc. (b)		67,729		6,117,283
Kohl’s Corp. (a)		46,997		3,117,781
Macy’s, Inc. (a)		87,508		2,605,988
Nordstrom, Inc. (a)		32,383		1,509,372
Target Corp. (a)		148,520		9,815,687
				31,252,657
Oil, Gas & Consumable Fuels—4.7%
Anadarko Petroleum Corp.		143,524		6,292,092
Apache Corp. (a)		108,022		2,835,577
Cabot Oil & Gas Corp. (a)		122,719		2,742,770
Chevron Corp.		543,830		59,163,266
Cimarex Energy Co. (a)		27,214		1,677,743
Concho Resources, Inc. (b)		56,994		5,858,413
ConocoPhillips		327,657		20,429,414
Devon Energy Corp.		133,255		3,003,568
Diamondback Energy, Inc.		43,898		4,069,345
EOG Resources, Inc. (a)		165,047		14,393,749
Exxon Mobil Corp.		1,204,993		82,168,473
Hess Corp. (a)		70,826		2,868,453
HollyFrontier Corp. (a)		45,370		2,319,314
Kinder Morgan, Inc.		540,204		8,308,337
Marathon Oil Corp.		236,591		3,392,715
Marathon Petroleum Corp.		196,625		11,602,841
Newfield Exploration Co. (b)		57,024		835,972
Noble Energy, Inc. (a)		136,556		2,561,791
Occidental Petroleum Corp.		214,889		13,189,887
ONEOK, Inc. (a)		117,078		6,316,358

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Oil, Gas & Consumable Fuels—(Continued)
Phillips 66 (a)		120,742	$	10,401,923
Pioneer Natural Resources Co.		48,516		6,380,824
Valero Energy Corp.		120,763		9,053,602
Williams Cos., Inc. (The)		344,535		7,596,997
				287,463,424
Personal Products—0.1%
Coty, Inc. - Class A		128,259		841,379
Estee Lauder Cos., Inc. (The) - Class A (a)		62,586		8,142,439
				8,983,818
Pharmaceuticals—5.1%
Allergan plc		90,236		12,060,944
Bristol-Myers Squibb Co.		464,543		24,146,945
Eli Lilly & Co.		268,332		31,051,379
Johnson & Johnson		763,324		98,506,962
Merck & Co., Inc.		740,099		56,550,964
Mylan NV (b)		146,754		4,021,060
Nektar Therapeutics (a) (b)		49,262		1,619,242
Perrigo Co. plc (a)		35,573		1,378,454
Pfizer, Inc.		1,645,194		71,812,718
Zoetis, Inc.		136,742		11,696,911
				312,845,579
Professional Services—0.3%
Equifax, Inc.		34,317		3,195,942
IHS Markit, Ltd. (b)		102,087		4,897,113
Nielsen Holdings plc		101,032		2,357,077
Robert Half International, Inc. (a)		34,573		1,977,576
Verisk Analytics, Inc. (a) (b)		46,853		5,108,851
				17,536,559
Real Estate Management & Development—0.1%
CBRE Group, Inc. - Class A (b)		90,227		3,612,689
Road & Rail—1.0%
CSX Corp.		228,315		14,185,211
J.B. Hunt Transport Services, Inc. (a)		24,858		2,312,788
Kansas City Southern		28,944		2,762,705
Norfolk Southern Corp. (a)		77,513		11,591,294
Union Pacific Corp.		209,700		28,986,831
				59,838,829
Semiconductors & Semiconductor Equipment—3.7%
Advanced Micro Devices, Inc. (a) (b)		250,310		4,620,723
Analog Devices, Inc. (a)		105,352		9,042,362
Applied Materials, Inc.		279,771		9,159,702
Broadcom, Inc.		117,672		29,921,636
Intel Corp.		1,298,970		60,960,662
KLA-Tencor Corp.		43,567		3,898,811
Lam Research Corp. (a)		44,167		6,014,220
Maxim Integrated Products, Inc. (a)		78,855		4,009,777
Microchip Technology, Inc. (a)		67,313		4,841,151
Micron Technology, Inc. (a) (b)		318,793		10,115,302
NVIDIA Corp.		173,614		23,177,469
Semiconductors & Semiconductor Equipment—(Continued)
Qorvo, Inc. (a) (b)		35,549		2,158,891
QUALCOMM, Inc.		344,996		19,633,722
Skyworks Solutions, Inc. (a)		50,527		3,386,320
Texas Instruments, Inc.		273,382		25,834,599
Xilinx, Inc.		72,019		6,133,858
				222,909,205
Software—6.1%
Adobe, Inc. (b)		138,929		31,431,297
ANSYS, Inc. (a) (b)		23,782		3,399,399
Autodesk, Inc. (b)		62,333		8,016,647
Cadence Design Systems, Inc. (b)		80,301		3,491,487
Citrix Systems, Inc.		36,437		3,733,335
Fortinet, Inc. (a) (b)		41,216		2,902,843
Intuit, Inc.		73,867		14,540,719
Microsoft Corp.		2,199,744		223,427,998
Oracle Corp.		725,230		32,744,135
Red Hat, Inc. (b)		50,308		8,836,097
Salesforce.com, Inc. (b)		217,728		29,822,204
Symantec Corp.		181,835		3,435,772
Synopsys, Inc. (b)		42,482		3,578,684
				369,360,617
Specialty Retail—2.3%
Advance Auto Parts, Inc.		20,747		3,266,823
AutoZone, Inc. (a) (b)		7,177		6,016,766
Best Buy Co., Inc. (a)		66,633		3,528,884
CarMax, Inc. (a) (b)		49,699		3,117,618
Foot Locker, Inc.		32,700		1,739,640
Gap, Inc. (The) (a)		60,794		1,566,053
Home Depot, Inc. (The)		321,478		55,236,350
L Brands, Inc. (a)		64,992		1,668,345
Lowe’s Cos., Inc.		228,531		21,107,123
O’Reilly Automotive, Inc. (b)		22,799		7,850,380
Ross Stores, Inc.		106,264		8,841,165
Tiffany & Co. (a)		30,877		2,485,907
TJX Cos., Inc. (The)		352,215		15,758,099
Tractor Supply Co.		34,742		2,898,872
Ulta Salon Cosmetics & Fragrance, Inc. (a) (b)		16,037		3,926,499
				139,008,524
Technology Hardware, Storage & Peripherals—3.8%
Apple, Inc. (a)		1,283,069		202,391,304
Hewlett Packard Enterprise Co. (a)		405,003		5,350,089
HP, Inc.		450,373		9,214,631
NetApp, Inc.		71,689		4,277,683
Seagate Technology plc (a)		74,125		2,860,484
Western Digital Corp. (a)		82,373		3,045,330
Xerox Corp.		59,001		1,165,860
				228,305,381
Textiles, Apparel & Luxury Goods—0.7%
Hanesbrands, Inc.		102,669		1,286,443
Michael Kors Holdings, Ltd. (b)		42,758		1,621,383
NIKE, Inc. - Class B		362,330		26,863,146

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares/ Principal Amount*		Value
Textiles, Apparel & Luxury Goods—(Continued)
PVH Corp.		21,555	$	2,003,537
Ralph Lauren Corp.		15,528		1,606,527
Tapestry, Inc.		82,479		2,783,666
Under Armour, Inc. - Class A (a) (b)		53,397		943,525
Under Armour, Inc. - Class C (b)		54,746		885,243
VF Corp.		92,607		6,606,584
				44,600,054
Tobacco—0.9%
Altria Group, Inc.		534,799		26,413,723
Philip Morris International, Inc.		442,436		29,537,027
				55,950,750
Trading Companies & Distributors—0.2%
Fastenal Co. (a)		81,699		4,272,041
United Rentals, Inc. (a) (b)		23,083		2,366,700
WW Grainger, Inc.		12,984		3,666,162
				10,304,903
Water Utilities—0.1%
American Water Works Co., Inc.		51,401		4,665,669
Total Common Stocks (Cost $3,189,391,339)				5,988,566,334
Mutual Fund—1.0%
Investment Company Security—1.0%
SPDR S&P 500 ETF Trust (a) (Cost $59,807,620)		237,000		59,231,040
Short-Term Investments—0.8%
Discount Notes—0.2%
Federal Home Loan Bank 2.189%, 01/18/11 (e)		1,175,000		1,173,757
2.066%, 01/09/19 (e)		5,700,000		5,697,361
2.236%, 01/16/19 (e)		675,000		674,375
2.276%, 01/23/19 (e)		3,125,000		3,120,662
2.323%, 02/06/19 (e)		1,225,000		1,222,142
				11,888,297
U.S. Treasury—0.6%
U.S. Treasury Bills 2.015%, 01/08/19 (e)		6,650,000		6,647,473
2.028%, 01/10/19 (e)		1,350,000		1,349,314
2.225%, 01/22/19 (e)		19,525,000		19,499,673
2.288%, 02/07/19 (e)		200,000		199,520
2.305%, 01/29/19 (e)		900,000		898,342
U.S. Treasury—(Continued)
U.S. Treasury Bills 2.333%, 02/21/19 (e)		9,300,000		9,268,959
				37,863,281
Total Short-Term Investments (Cost $49,750,052)				49,751,578
Securities Lending Reinvestments (f)—10.0%
Certificates of Deposit—4.9%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (g)		10,000,000		9,999,140
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (g)		10,000,000		9,999,750
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (g)		5,000,000		4,999,996
3.072%, 3M LIBOR + 0.280%, 03/20/19 (g)		15,000,000		15,005,985
Barclays Bank plc 2.500%, 02/01/19		8,000,000		7,998,968
2.547%, 1M LIBOR + 0.200%, 02/04/19 (g)		5,000,000		4,999,525
China Construction Bank Corp. 2.550%, 01/07/19		8,000,000		8,000,000
Citibank N.A. 2.490%, 02/04/19		10,000,000		9,998,610
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (g)		4,000,000		4,000,012
2.642%, 1M LIBOR + 0.210%, 09/13/19 (g)		12,000,000		12,000,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (g)		10,000,000		10,003,140
Credit Agricole S.A. 2.500%, 02/12/19		2,000,000		1,999,660
Credit Suisse AG 2.620%, 04/01/19		10,000,000		9,994,820
2.890%, SOFR + 0.430%, 05/02/19 (g)		7,000,000		6,999,916
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		7,939,899		7,991,840
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (g)		12,000,000		12,000,072
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (g)		5,000,000		5,000,030
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (g)		5,000,000		4,996,850
2.731%, 3M LIBOR + 0.190%, 02/01/19 (g)		10,000,000		9,997,760
2.810%, 1M LIBOR + 0.370%, 02/14/19 (g)		10,000,000		10,001,870
Nordea Bank New York 2.608%, 3M LIBOR + 0.200%, 04/05/19 (g)		10,000,000		10,009,619
Royal Bank of Canada New York 2.665%, 1M LIBOR + 0.210%, 09/17/19 (g)		15,000,000		14,984,655
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (g)		10,000,000		9,999,180
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (g)		5,000,000		4,997,780
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (g)		13,000,000		12,999,623
2.717%, 3M LIBOR + 0.230%, 04/24/19 (g)		3,000,000		2,999,346

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (f)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (g)		15,000,000	$	14,994,495
Sumitomo Mitsui Banking Corp., New York 2.559%, 1M LIBOR + 0.180%, 03/05/19 (g)		5,000,000		4,998,815
2.665%, 1M LIBOR + 0.210%, 05/17/19 (g)		6,000,000		5,997,480
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (g)		15,000,000		14,999,325
2.799%, 1M LIBOR + 0.450%, 04/03/19 (g)		7,000,000		7,004,046
2.822%, 1M LIBOR + 0.300%, 10/31/19 (g)		5,000,000		4,998,830
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (g)		5,000,000		4,995,240
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (g)		10,000,000		10,000,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (g)		11,000,000		10,999,931
				300,966,309
Commercial Paper—1.9%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (g)		5,000,000		4,998,615
Banco Santander S.A. 2.500%, 01/16/19		6,955,278		6,991,572
2.740%, 02/07/19		19,859,956		19,941,760
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (g)		15,000,000		15,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (g)		15,000,000		15,001,395
2.725%, 3M LIBOR + 0.110%, 05/10/19 (g)		10,000,000		9,998,820
Kells Funding LLC 2.610%, 04/10/19		9,869,500		9,926,180
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (g)		15,000,000		14,999,760
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (g)		10,000,000		9,998,900
Westpac Banking Corp. 2.659%, 3M LIBOR + 0.070%, 08/07/19 (g)		7,500,000		7,495,073
				114,352,075
Repurchase Agreements—3.1%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $22,672,500; collateralized by various Common Stock with an aggregate market value of $24,754,126.		22,500,000		22,500,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $18,048,825; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $19,589,737.		18,000,000		18,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,007,513; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $1,020,000.		1,000,000		1,000,000
Repurchase Agreements—(Continued)
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $3,400,470; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $3,468,003.		3,400,000		3,400,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $5,100,706; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $5,202,001.		5,100,000		5,100,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $2,000,306; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $2,040,000..		2,000,000		2,000,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $7,840,391; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $7,995,778.		7,838,998		7,838,998
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $11,183,398; collateralized by various Common Stock with an aggregate market value of $12,210,001.		11,100,000		11,100,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $12,090,160; collateralized by various Common Stock with an aggregate market value of $13,200,000.		12,000,000		12,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $40,505,760; collateralized by various Common Stock with an aggregate market value of $45,085,097.		40,500,000		40,500,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $20,510,324; collateralized by various Common Stock with an aggregate market value of $22,823,099.		20,500,000		20,500,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $10,001,406; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $10,954,759.		10,000,000		10,000,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $10,001,406; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $10,954,759.		10,000,000		10,000,000

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (f)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $25,012,444; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $27,386,897.		25,000,000	$	25,000,000
				188,938,998
Time Deposit—0.1%
Royal Bank of Canada 2.420%, 01/02/19		5,000,000		5,000,000
Total Securities Lending Reinvestments (Cost $609,299,174)				609,257,382
Total Investments—110.2% (Cost $3,908,248,185)				6,706,806,334
Other assets and liabilities (net)—(10.2)%				(622,947,343	)
Net Assets—100.0%			$	6,083,858,991

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $600,389,313 and the collateral received consisted of cash in the amount of $609,063,630 andnon-cash collateral with a value of $410,211. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b)	Non-income producing security.
(c)	Affiliated Issuer. (See Note 7 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(d)	All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2018, the market value of securities pledged was $20,769,159.
(e)	The rate shown represents current yield to maturity.
(f)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(g)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts		Notional Amount			Value/ Unrealized Depreciation
S&P 500 IndexE-Mini Futures		03/15/19		210		USD	26,304,600	$	(1,052,405	)

Glossary of Abbreviations

Currencies

(USD)— United States Dollar

Index Abbreviations

(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Other Abbreviations

(ETF)— Exchange-Traded Fund

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1			Level 2			Level 3		Total
Total Common Stocks*	$	5,988,566,334		$	—		$	—	$	5,988,566,334
Total Mutual Fund*		59,231,040			—			—		59,231,040
Total Short-Term Investments*		—			49,751,578			—		49,751,578
Total Securities Lending Reinvestments*		—			609,257,382			—		609,257,382
Total Investments	$	6,047,797,374		$	659,008,960		$	—	$	6,706,806,334
Collateral for Securities Loaned (Liability)	$	—		$	(609,063,630	)	$	—	$	(609,063,630	)
Futures Contracts
Futures Contracts (Unrealized Depreciation)	$	(1,052,405	)	$	—		$	—	$	(1,052,405	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	6,694,245,124
Affiliated investments at value (c) (d)		12,561,210
Cash		65,406
Receivable for:
Investments sold		1,808,822
Fund shares sold		5,966,954
Dividends		6,797,890
Variation margin on futures contracts		201,600
Prepaid expenses		18,370
Total Assets		6,721,665,376
Liabilities
Collateral for securities loaned		609,063,630
Payables for:
Investments purchased		21,910,648
Fund shares redeemed		4,258,753
Accrued Expenses:
Management fees		1,260,599
Distribution and service fees		411,386
Deferred trustees’ fees		130,256
Other expenses		771,113
Total Liabilities		637,806,385
Net Assets	$	6,083,858,991
Net Assets Consist of:
Paid in surplus	$	2,737,108,791
Distributable earnings (Accumulated losses)		3,346,750,200
Net Assets	$	6,083,858,991
Net Assets
Class A	$	4,117,875,067
Class B		1,779,383,655
Class D		45,116,782
Class E		125,164,730
Class G		16,318,757
Capital Shares Outstanding*
Class A		87,152,879
Class B		39,246,804
Class D		957,650
Class E		2,669,623
Class G		360,696
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	47.25
Class B		45.34
Class D		47.11
Class E		46.88
Class G		45.24

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments, excluding affiliated investments, was $3,897,314,701.
(b)	Includes securities loaned at value of $598,154,892.
(c)	Identified cost of affiliated investments was $10,933,484.
(d)	Includes securities loaned at value of $2,234,421.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	146,746,888
Dividends from affiliated investments		500,140
Interest		532,783
Securities lending income		2,624,992
Total investment income		150,404,803
Expenses
Management fees		17,343,709
Administration fees		229,169
Custodian and accounting fees		366,561
Distribution and service fees—Class B		5,099,449
Distribution and service fees—Class D		52,861
Distribution and service fees—Class E		218,464
Distribution and service fees—Class G		55,566
Audit and tax services		44,663
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		479,762
Insurance		44,099
Miscellaneous		688,401
Total expenses		24,701,755
Less management fee waiver		(865,623	)
Net expenses		23,836,132
Net Investment Income		126,568,671
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		526,168,809
Affiliated investments		586,836
Futures contracts		(559,464	)
Net realized gain		526,196,181
Net change in unrealized depreciation on:
Investments		(913,501,875	)
Affiliated investments		(4,290,498	)
Futures contracts		(1,138,295	)
Net change in unrealized depreciation		(918,930,668	)
Net realized and unrealized loss		(392,734,487	)
Net Decrease in Net Assets From Operations	$	(266,165,816	)

(a) Net of foreign withholding taxes of $6,351.

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	126,568,671		$	122,226,194
Net realized gain		526,196,181			399,951,192
Net change in unrealized appreciation (depreciation)		(918,930,668	)		808,122,724
Increase (decrease) in net assets from operations		(266,165,816	)		1,330,300,110
From Distributions to Shareholders (a)
Class A		(345,323,756	)		(206,844,489	)
Class B		(151,903,972	)		(92,336,236	)
Class D		(3,829,769	)		(2,710,034	)
Class E		(10,642,785	)		(6,592,358	)
Class G		(1,367,706	)		(781,608	)
Total distributions		(513,067,988	)		(309,264,725	)
Decrease in net assets from capital share transactions		(251,123,564	)		(464,951,761	)
Total increase (decrease) in net assets		(1,030,357,368	)		556,083,624
Net Assets
Beginning of period		7,114,216,359			6,558,132,735
End of period	$	6,083,858,991		$	7,114,216,359	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		2,439,630		$	125,872,646			2,565,526		$	125,800,863
Reinvestments		6,665,195			345,323,756			4,295,836			206,844,489
Redemptions		(11,144,179	)		(591,671,377	)		(12,118,957	)		(599,372,121	)
Net decrease		(2,039,354	)	$	(120,474,975	)		(5,257,595	)	$	(266,726,769	)
Class B
Sales		2,102,037		$	104,947,642			1,383,010		$	65,105,674
Reinvestments		3,051,506			151,903,972			1,990,005			92,336,236
Redemptions		(7,227,146	)		(369,794,918	)		(6,861,898	)		(327,592,006	)
Net decrease		(2,073,603	)	$	(112,943,304	)		(3,488,883	)	$	(170,150,096	)
Class D
Sales		53,658		$	2,925,553			291,987		$	14,334,939
Reinvestments		74,091			3,829,769			56,424			2,710,034
Redemptions		(240,446	)		(12,910,665	)		(678,819	)		(33,434,038	)
Net decrease		(112,697	)	$	(6,155,343	)		(330,408	)	$	(16,389,065	)
Class E
Sales		51,228		$	2,619,302			51,868		$	2,549,769
Reinvestments		206,857			10,642,785			137,800			6,592,358
Redemptions		(460,536	)		(24,371,905	)		(471,239	)		(23,245,491	)
Net decrease		(202,451	)	$	(11,109,818	)		(281,571	)	$	(14,103,364	)
Class G
Sales		7,719		$	389,067			83,420		$	3,864,519
Reinvestments		27,525			1,367,706			16,871			781,608
Redemptions		(42,916	)		(2,196,897	)		(46,868	)		(2,228,594	)
Net increase (decrease)		(7,672	)	$	(440,124	)		53,423		$	2,417,533
Decrease derived from capital shares transactions				$	(251,123,564	)				$	(464,951,761	)

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Statements of Changes in Net Assets

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 10). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(80,429,505	)	$	(126,414,984	)
Class B		(32,596,779	)		(59,739,457	)
Class D		(1,016,112	)		(1,693,922	)
Class E		(2,425,322	)		(4,167,036	)
Class G		(270,023	)		(511,585	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $120,116,513 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	53.40		$	46.03		$	44.04		$	46.21		$	42.58
Income (Loss) from Investment Operations
Net investment income (a)		1.01			0.92			0.89			0.85			0.79
Net realized and unrealized gain (loss)		(3.11	)		8.74			3.98			(0.26	)		4.66
Total income (loss) from investment operations		(2.10	)		9.66			4.87			0.59			5.45
Less Distributions
Distributions from net investment income		(0.98	)		(0.89	)		(0.90	)		(0.81	)		(0.74	)
Distributions from net realized capital gains		(3.07	)		(1.40	)		(1.98	)		(1.95	)		(1.08	)
Total distributions		(4.05	)		(2.29	)		(2.88	)		(2.76	)		(1.82	)
Net Asset Value, End of Period	$	47.25		$	53.40		$	46.03		$	44.04		$	46.21
Total Return (%) (b)		(4.60	)		21.54			11.67			1.17			13.36
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.28			0.28			0.27			0.27			0.27
Net ratio of expenses to average net assets (%) (c)		0.27			0.26			0.26			0.26			0.26
Ratio of net investment income to average net assets (%)		1.90			1.86			2.02			1.88			1.81
Portfolio turnover rate (%)		14			11			8			9			12
Net assets, end of period (in millions)	$	4,117.9		$	4,762.6		$	4,347.5		$	4,108.5		$	4,295.4
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	51.39		$	44.37		$	42.55		$	44.73		$	41.27
Income (Loss) from Investment Operations
Net investment income (a)		0.84			0.77			0.75			0.71			0.66
Net realized and unrealized gain (loss)		(2.97	)		8.42			3.84			(0.25	)		4.52
Total income (loss) from investment operations		(2.13	)		9.19			4.59			0.46			5.18
Less Distributions
Distributions from net investment income		(0.85	)		(0.77	)		(0.79	)		(0.69	)		(0.64	)
Distributions from net realized capital gains		(3.07	)		(1.40	)		(1.98	)		(1.95	)		(1.08	)
Total distributions		(3.92	)		(2.17	)		(2.77	)		(2.64	)		(1.72	)
Net Asset Value, End of Period	$	45.34		$	51.39		$	44.37		$	42.55		$	44.73
Total Return (%) (b)		(4.83	)		21.23			11.38			0.91			13.10
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.53			0.53			0.52			0.52			0.52
Net ratio of expenses to average net assets (%) (c)		0.52			0.51			0.51			0.51			0.51
Ratio of net investment income to average net assets (%)		1.65			1.61			1.77			1.63			1.56
Portfolio turnover rate (%)		14			11			8			9			12
Net assets, end of period (in millions)	$	1,779.4		$	2,123.5		$	1,988.2		$	1,892.0		$	2,025.6

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Financial Highlights

Selected per share data
	Class D
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	53.24		$	45.90		$	43.93		$	46.10		$	42.46
Income (Loss) from Investment Operations
Net investment income (a)		0.95			0.87			0.84			0.80			0.73
Net realized and unrealized gain (loss)		(3.09	)		8.71			3.97			(0.26	)		4.67
Total income (loss) from investment operations		(2.14	)		9.58			4.81			0.54			5.40
Less Distributions
Distributions from net investment income		(0.92	)		(0.84	)		(0.86	)		(0.76	)		(0.68	)
Distributions from net realized capital gains		(3.07	)		(1.40	)		(1.98	)		(1.95	)		(1.08	)
Total distributions		(3.99	)		(2.24	)		(2.84	)		(2.71	)		(1.76	)
Net Asset Value, End of Period	$	47.11		$	53.24		$	45.90		$	43.93		$	46.10
Total Return (%) (b)		(4.69	)		21.41			11.54			1.07			13.26
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.38			0.38			0.37			0.37			0.37
Net ratio of expenses to average net assets (%) (c)		0.37			0.36			0.36			0.36			0.36
Ratio of net investment income to average net assets (%)		1.80			1.77			1.92			1.76			1.70
Portfolio turnover rate (%)		14			11			8			9			12
Net assets, end of period (in millions)	$	45.1		$	57.0		$	64.3		$	84.1		$	143.5
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	53.01		$	45.71		$	43.75		$	45.92		$	42.32
Income (Loss) from Investment Operations
Net investment income (a)		0.92			0.84			0.81			0.78			0.72
Net realized and unrealized gain (loss)		(3.08	)		8.68			3.97			(0.26	)		4.64
Total income (loss) from investment operations		(2.16	)		9.52			4.78			0.52			5.36
Less Distributions
Distributions from net investment income		(0.90	)		(0.82	)		(0.84	)		(0.74	)		(0.68	)
Distributions from net realized capital gains		(3.07	)		(1.40	)		(1.98	)		(1.95	)		(1.08	)
Total distributions		(3.97	)		(2.22	)		(2.82	)		(2.69	)		(1.76	)
Net Asset Value, End of Period	$	46.88		$	53.01		$	45.71		$	43.75		$	45.92
Total Return (%) (b)		(4.72	)		21.35			11.50			1.02			13.20
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.43			0.43			0.42			0.42			0.42
Net ratio of expenses to average net assets (%) (c)		0.42			0.41			0.41			0.41			0.41
Ratio of net investment income to average net assets (%)		1.75			1.71			1.87			1.73			1.66
Portfolio turnover rate (%)		14			11			8			9			12
Net assets, end of period (in millions)	$	125.2		$	152.3		$	144.2		$	143.5		$	161.4

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Financial Highlights

Selected per share data
	Class G
	Year Ended December 31,
	2018			2017			2016			2015			2014(d)
Net Asset Value, Beginning of Period	$	51.30		$	44.29		$	42.48		$	44.64		$	44.10
Income (Loss) from Investment Operations
Net investment income (a)		0.82			0.75			0.73			0.70			0.09
Net realized and unrealized gain (loss)		(2.98	)		8.40			3.83			(0.24	)		0.45
Total income (loss) from investment operations		(2.16	)		9.15			4.56			0.46			0.54
Less Distributions
Distributions from net investment income		(0.83	)		(0.74	)		(0.77	)		(0.67	)		0.00
Distributions from net realized capital gains		(3.07	)		(1.40	)		(1.98	)		(1.95	)		0.00
Total distributions		(3.90	)		(2.14	)		(2.75	)		(2.62	)		0.00
Net Asset Value, End of Period	$	45.24		$	51.30		$	44.29		$	42.48		$	44.64
Total Return (%) (b)		(4.89	)		21.18			11.32			0.91			1.22	(e)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.58			0.58			0.57			0.57			0.58	(f)
Net ratio of expenses to average net assets (%) (c)		0.57			0.56			0.56			0.56			0.57	(f)
Ratio of net investment income to average net assets (%)		1.60			1.57			1.72			1.64			1.54	(f)
Portfolio turnover rate (%)		14			11			8			9			12
Net assets, end of period (in millions)	$	16.3		$	18.9		$	14.0		$	8.5		$	0.4

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d)	Commencement of operations was November 12, 2014.
(e)	Periods less than one year are not computed on an annualized basis.
(f)	Computed on an annualized basis.

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Stock Index Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers five classes of shares: Class A, B, D, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-20

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus.Book-tax differences are primarily due to adjustments to prior period accumulated balances. These adjustments have no impact on net assets or the results of operations.

BHFTII-21

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $188,938,998. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

BHFTII-22

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(568,218,416	)	$	—	$	—	$	—	$	(568,218,416	)
Mutual Funds		(40,845,214	)		—		—		—		(40,845,214	)
Total	$	(609,063,630	)	$	—	$	—	$	—	$	(609,063,630	)
Total Borrowings	$	(609,063,630	)	$	—	$	—	$	—	$	(609,063,630	)
Gross amount of recognized liabilities for securities lending transactions										$	(609,063,630	)

3. Investments in Derivative Instruments

Futures Contracts -The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value
Equity	Unrealized depreciation on futures contracts (a)	$	1,052,405

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Equity
Futures contracts	$	(559,464	)
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Equity
Futures contracts	$	(1,138,295	)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Futures contracts long	$	11,333

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

BHFTII-23

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	944,374,814	$	0	$	1,548,329,185

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2018 were $17,343,709.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Advisors, LLC (“MIA”) with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIA an investment subadvisory fee for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.020%	On the first $500 million
0.015%	Of the next $500 million
0.010%	Of the next $1 billion
0.005%	On amounts over $2 billion

Fees earned by MIA with respect to the Portfolio for the year ended December 31, 2018 were $521,874.

BHFTII-24

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.005%	Over $500 million and under $1 billion
0.010%	Of the next $1 billion
0.015%	On amounts over $2 billion

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class D, Class E and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class D, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class D, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the year ended December 31, 2018 is as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Realized Gain/(Loss)			Change in Unrealized Appreciation/ (Depreciation)			Ending Value as of December 31, 2018
Brighthouse Financial, Inc.	$	1,738,500	$	321,825	$	(148,039	)	$	(2,994	)	$	(880,440)		$	1,028,852
MetLife, Inc.		16,461,831		—		(2,109,246	)		589,830			(3,410,057	)		11,532,358
	$	18,200,331	$	321,825	$	(2,257,285	)	$	586,836		$	(4,290,497	)	$	12,561,210

Security Description	Income earned from affiliates during the period		Number of shares held at December 31, 2018
Brighthouse Financial, Inc.	$	—		33,755
MetLife, Inc.		500,140		280,866
	$	500,140

BHFTII-25

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	4,011,075,995
Gross unrealized appreciation		2,901,516,740
Gross unrealized depreciation		(205,786,401	)
Net unrealized appreciation (depreciation)	$	2,695,730,339

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$135,078,703	$	125,663,743	$	377,989,285	$	183,600,982	$	513,067,988	$	309,264,725

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$125,277,688	$	525,872,429	$	2,695,730,339	$	—	$	3,346,880,456

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

10. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-26

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MetLife Stock Index Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Stock Index Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Stock Index Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-27

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-28

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-29

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-30

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-31

Brighthouse Funds Trust II

MetLife Stock Index Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MetLife Stock Index Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Advisors, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three-, and five-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its benchmark, the S&P 500 Index, for theone-, three-, and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median, but above the Expense Universe median and theSub-advised Expense Universe median. The Board also noted that the Portfolio’s total expenses (exclusive of12b-1 fees) were equal to the Expense Group median, but below the Expense Universe median and theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group andSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-32

Brighthouse Funds Trust II

MFS Total Return Portfolio

Managed by MFS Investment Management

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, E, and F shares of the MFS Total Return Portfolio returned-5.57%,-5.81%,-5.72%, and-5.76%, respectively. The Portfolio’s benchmarks, the Standard & Poor’s (“S&P”) 500 Index¹ and the Bloomberg Barclays U.S. Aggregate Bond Index², returned-4.38% and 0.01%, respectively. The Blended Index³, a blend of the S&P 500 Index (60%) and the Bloomberg Barclays U.S. Aggregate Bond Index (40%) returned-2.35%.

MARKET ENVIRONMENT/CONDITIONS

During the reporting period, the U.S. Federal Reserve raised interest rates by 100 basis points, bringing the total number of rate hikes to nine since the central bank began to normalize monetary policy in late 2015. Economic growth rates in the U.S., Eurozone and Japan remained above trend, despite a slowing in global growth, particularly toward the end of the period. Inflation remained contained, particularly outside the U.S. Late in the period, the European Central Bank halted its asset purchase program but issued forward guidance that it does not expect to raise interest rates at least until after the summer of 2019. The Bank of England (once) and the Bank of Canada (three times) each raised rates during the period. The European political backdrop became a bit more volatile, late in the period, spurred by concerns over cohesion in the eurozone after the election of an anti-establishment, Eurosceptic coalition government in Italy and widespread protests over stagnant wage growth in France.

Bond yields rose in the U.S. during most of the period but remained low by historical standards and slipped from their highs, late in the period, as market volatility increased. Yields in many developed markets fell. Outside of emerging markets, where spreads and currencies came under pressure, credit spreads remained quite tight until the end of the period, when thinner liquidity, lower oil prices and concerns over high degrees of corporate leverage emerged. Growing concern over increasing global trade friction appeared to have weighed on business sentiment during the period’s second half, especially outside the U.S. Tighter financial conditions from rising U.S. rates and a strong dollar, combined with trade uncertainty, helped expose structural weaknesses in several emerging markets in the second half of the period.

Volatility increased, at the end of the period, amid signs of slowing global economic growth and increasing trade tensions, which prompted a market setback shortly after U.S. markets set record highs in September. It was the second such equity market decline during the reporting period. The correction came despite a third consecutive quarter of strong growth in U.S. earnings per share. Strong earnings growth, combined with the market decline, brought U.S. equity valuations down from elevated levels, earlier in the period, to multiples more in line with long-term averages. While the U.S. economy held up better than most, global economic growth became less synchronized during the period, with Europe and China showing signs of a slowdown and some emerging markets coming under stress.

PORTFOLIOREVIEW/PERIOD-END POSITIONING

Within the equity portion of the Portfolio, an overweight position and stock selection within the Financials sector detracted from performance relative to the S&P 500 Index. The Portfolio’s overweight positions in shares of financial services firms Goldman Sachs Group and Citigroup and insurance company Prudential Financial held back relative returns.

An underweight allocation and security selection within the Information Technology (“IT”)sector also detracted from relative performance. Within this sector, an underweight position in software giant Microsoft and the Portfolio’s overweight holding of DXC Technology hurt relative returns.

Elsewhere, the Portfolio’s underweight position in internet retailer Amazon.com negatively impacted relative results as the stock outperformed the benchmark during the year. The Portfolio’s overweight holdings of tobacco company Philip Morris International and food producer Tyson Foods also weighed on relative performance. The Portfolio’s holdings of residential and commercial building materials manufacturer Owens Corningand pharmaceutical company Bayer(Germany) further held back relative returns.

Stock selection and an overweight allocation to the Health Caresector contributed to performance relative to the S&P 500 Index. The Portfolio’s overweight holdings of pharmaceutical giant Pfizer, life sciences supply company Thermo Fisher Scientific, pharmaceutical company Eli Lilly, medical device maker Medtronic, healthcare equipment manufacturer Danaher, and pharmaceutical and medical products maker Abbott Laboratories all positively impacted relative returns.

Security selection in the Real Estate sector also aided relative performance. Most notably, the Portfolio’s holding of real estate investment trust Medical Properties Trust boosted relative performance.

In other sectors, avoiding shares of poor-performing diversified industrial conglomerate General Electric bolstered relative performance. Also, the timing of the Portfolio’s ownership in shares of social networking service provider Facebookand telecommunication services provider AT&Tstrengthened relative returns as both stocks underperformed the benchmark during the reporting year.

Within the fixed income portion of the Portfolio, an underweight allocation to the U.S. Treasuries sector was a detractor from performance relative to the Bloomberg Barclays U.S. Aggregate Bond Index. Bond selection within Industrialssector further weighed on relative results.

Selection within both the Agency Mortgage-Backed Securities (“MBS”) fixed rateandUtilitiessectors aided performance relative to the Bloomberg Barclays U.S. Aggregate Bond Index. Furthermore, the Portfolio’s shorter durationstance contributed to relative performance as interest rates rose during the period.

BHFTII-1

Brighthouse Funds Trust II

MFS Total Return Portfolio

Managed by MFS Investment Management

Portfolio Manager Commentary*—(Continued)

Over the trailing 12 months ended December 31, 2018, the Portfolio’s equity portion increased its exposure to Health Care, IT, and Utilities. During the same period, the Portfolio reduced its weighting to Financials, Consumer Staples, and Communications Services. At the end of the period, the Portfolio’s equity portion was overweight Financials, Industrials, and Health Care, while being underweight IT, Communication Services, and Consumer Discretionary.

Over the trailing 12 months, the Portfolio increased its exposure to MBS, Corporate, and Commercial Mortgage-Backed Securities (“CMBS”). During the same period, the Portfolio reduced its weighting to government securities. At the end of the period, the fixed income allocation was most overweight CMBS, MBS, and Collateralized Loan Obligations. In contrast, the fixed income allocation was most underweight government securities and international securities.

Brooks Taylor

Steven Gorham

Nevin Chitkara

Joshua Marston

Jonathan Sage

Robert Persons

Portfolio Managers

MFS Investment Management

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

MFS Total Return Portfolio

A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX & THE BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX & THE BLENDED INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
MFS Total Return Portfolio
Class A		-5.57		4.69		8.36
Class B		-5.81		4.43		8.09
Class E		-5.72		4.54		8.20
Class F		-5.76		4.48		8.15
Bloomberg Barclays U.S. Aggregate Bond Index		0.01		2.52		3.48
S&P 500 Index		-4.38		8.50		13.12
Blended Index		-2.35		6.24		9.43

¹ The Standard & Poor’s (S&P) 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-weighted index (stock price times number of shares outstanding) with each stock’s weight in the Index proportionate to its market value.

² The Bloomberg Barclays U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

³ The Blended Index is a composite index consisting of 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Equity Sectors

	% of Net Assets
Financials		12.6
Health Care		9.8
Industrials		7.3
Information Technology		6.6
Consumer Staples		5.1

Top Equity Holdings

	% of Net Assets
JPMorgan Chase & Co.		1.8
Pfizer, Inc.		1.5
Comcast Corp.		1.4
Johnson & Johnson		1.2
Philip Morris International, Inc.		1.1

Top Fixed Income Sectors

	% of Net Assets
U.S. Treasury & Government Agencies		27.7
Corporate Bonds & Notes		11.7
Mortgage-Backed Securities		2.5
Asset-Backed Securities		1.9
Municipals		0.2

Top Fixed Income Issuers

	% of Net Assets
U.S. Treasury Notes		10.1
Fannie Mae 30 Yr. Pool		5.1
U.S. Treasury Bonds		3.8
Freddie Mac 30 Yr. Gold Pool		2.8
Ginnie Mae II 30 Yr. Pool		2.4

BHFTII-3

Brighthouse Funds Trust II

MFS Total Return Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MFS Total Return Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A	Actual		0.62	%	$	1,000.00	$	963.90	$	3.07
	Hypothetical*		0.62	%	$	1,000.00	$	1,022.08	$	3.16
Class B	Actual		0.87	%	$	1,000.00	$	962.70	$	4.30
	Hypothetical*		0.87	%	$	1,000.00	$	1,020.82	$	4.43
Class E	Actual		0.77	%	$	1,000.00	$	963.20	$	3.81
	Hypothetical*		0.77	%	$	1,000.00	$	1,021.32	$	3.92
Class F	Actual		0.82	%	$	1,000.00	$	963.00	$	4.06
	Hypothetical*		0.82	%	$	1,000.00	$	1,021.07	$	4.18

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

BHFTII-4

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—55.9% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—1.8%
Boeing Co. (The)		12,934	$	4,171,215
Harris Corp. (a)		6,161		829,579
Lockheed Martin Corp.		7,074		1,852,256
Northrop Grumman Corp.		9,559		2,340,999
United Technologies Corp.		36,659		3,903,450
				13,097,499
Air Freight & Logistics—0.2%
United Parcel Service, Inc. - Class B		17,231		1,680,539
Airlines—0.1%
Delta Air Lines, Inc.		21,049		1,050,345
Auto Components—0.6%
Aptiv plc (a)		27,786		1,710,784
Lear Corp.		22,145		2,720,735
				4,431,519
Automobiles—0.2%
Harley-Davidson, Inc.		5,005		170,771
Toyota Motor Corp.		19,700		1,144,191
				1,314,962
Banks—5.6%
Bank of America Corp.		253,656		6,250,084
BNP Paribas S.A.		8,594		387,058
Citigroup, Inc.		116,961		6,088,990
JPMorgan Chase & Co.		132,032		12,888,964
PNC Financial Services Group, Inc. (The)		32,685		3,821,203
Royal Bank of Canada		10,446		714,968
Sumitomo Mitsui Financial Group, Inc.		11,000		362,745
SunTrust Banks, Inc.		14,269		719,729
U.S. Bancorp (a)		103,640		4,736,348
Wells Fargo & Co.		91,541		4,218,209
Westpac Banking Corp.		39,105		689,709
				40,878,007
Beverages—0.8%
Coca-Cola European Partners plc		18,638		854,552
Diageo plc		84,364		2,998,593
Molson Coors Brewing Co. - Class B		27,672		1,554,060
PepsiCo, Inc.		6,947		767,505
				6,174,710
Biotechnology—0.3%
Biogen, Inc. (a) (b)		7,495		2,255,395
Building Products—0.5%
Johnson Controls International plc		134,302		3,982,054
Capital Markets—3.1%
Apollo Global Management LLC - Class A		57,643		1,414,559
Bank of New York Mellon Corp. (The)		96,507		4,542,585
BlackRock, Inc.		6,366		2,500,692
Blackstone Group L.P. (The)		40,765		1,215,205
Capital Markets—(Continued)
Charles Schwab Corp. (The)		18,331		761,287
Goldman Sachs Group, Inc. (The)		24,608		4,110,766
Invesco, Ltd. (a)		21,842		365,635
Moody’s Corp. (a)		6,934		971,037
Morgan Stanley		36,277		1,438,383
Nasdaq, Inc. (a)		19,633		1,601,464
State Street Corp.		39,146		2,468,938
T. Rowe Price Group, Inc. (a)		17,622		1,626,863
				23,017,414
Chemicals—2.0%
Axalta Coating Systems, Ltd. (b)		43,915		1,028,490
Celanese Corp. (a)		13,117		1,180,137
CF Industries Holdings, Inc.		60,706		2,641,318
DowDuPont, Inc.		27,394		1,465,031
Methanex Corp.		6,919		333,288
PPG Industries, Inc. (a)		51,436		5,258,302
Sherwin-Williams Co. (The)		6,398		2,517,357
				14,423,923
Commercial Services & Supplies—0.1%
Transcontinental, Inc. - Class A		38,667		546,640
Communications Equipment—0.7%
Cisco Systems, Inc.		113,064		4,899,063
Consumer Finance—0.2%
American Express Co.		13,946		1,329,333
Synchrony Financial		20,404		478,678
				1,808,011
Containers & Packaging—0.1%
Crown Holdings, Inc. (a) (b)		21,258		883,695
Diversified Financial Services—0.2%
ORIX Corp.		119,300		1,733,384
Diversified Telecommunication Services—0.4%
Verizon Communications, Inc.		56,228		3,161,138
Electric Utilities—1.7%
Duke Energy Corp. (a)		41,016		3,539,681
Exelon Corp.		89,521		4,037,397
PPL Corp.		24,009		680,175
Southern Co. (The) (a)		57,181		2,511,390
SSE plc		82,329		1,131,960
Xcel Energy, Inc. (a)		13,494		664,849
				12,565,452
Electrical Equipment—0.8%
Eaton Corp. plc		75,541		5,186,645
Regal-Beloit Corp. (a)		5,111		358,026
Schneider Electric SE		5,180		352,535
				5,897,206

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Energy Equipment & Services—0.3%
Schlumberger, Ltd.		56,953	$	2,054,864
Entertainment—0.1%
Electronic Arts, Inc. (b)		7,034		555,053
Equity Real Estate Investment Trusts—1.1%
EPR Properties		8,268		529,400
Life Storage, Inc.		8,342		775,723
Medical Properties Trust, Inc.		192,482		3,095,110
Public Storage (a)		2,797		566,141
Simon Property Group, Inc.		6,915		1,161,651
STORE Capital Corp.		73,697		2,086,362
				8,214,387
Food & Staples Retailing—0.2%
U.S. Foods Holding Corp. (b)		23,345		738,636
Walgreens Boots Alliance, Inc. (a)		9,747		666,012
				1,404,648
Food Products—1.8%
Archer-Daniels-Midland Co.		33,354		1,366,513
Danone S.A.		20,349		1,434,186
General Mills, Inc. (a)		64,759		2,521,715
J.M. Smucker Co. (The) (a)		5,694		532,332
Marine Harvest ASA		65,105		1,370,528
Mondelez International, Inc. - Class A		20,191		808,246
Nestle S.A.		42,284		3,437,725
Tyson Foods, Inc. - Class A		27,129		1,448,689
				12,919,934
Health Care Equipment & Supplies—2.4%
Abbott Laboratories (a)		63,087		4,563,083
Danaher Corp.		55,395		5,712,332
Medtronic plc		69,856		6,354,102
Zimmer Biomet Holdings, Inc. (a)		10,808		1,121,006
				17,750,523
Health Care Providers & Services—1.7%
AmerisourceBergen Corp.		12,976		965,414
Cigna Corp.		21,118		4,010,667
CVS Health Corp.		8,659		567,338
HCA Healthcare, Inc.		20,394		2,538,033
Humana, Inc.		10,985		3,146,983
McKesson Corp.		14,429		1,593,972
				12,822,407
Hotels, Restaurants & Leisure—0.6%
Aramark (a)		29,752		861,915
Marriott International, Inc. - Class A (a)		6,044		656,137
Starbucks Corp.		40,846		2,630,482
				4,148,534
Household Durables—0.3%
PulteGroup, Inc.		27,330		710,307
Household Durables—(Continued)
Whirlpool Corp.		12,397		1,324,867
				2,035,174
Household Products—0.7%
Colgate-Palmolive Co.		4,815		286,589
Kimberly-Clark Corp.		25,715		2,929,967
Procter & Gamble Co. (The)		4,442		408,309
Reckitt Benckiser Group plc		17,752		1,355,649
				4,980,514
Industrial Conglomerates—1.2%
3M Co.		15,784		3,007,483
Honeywell International, Inc.		44,078		5,823,586
				8,831,069
Insurance—3.3%
Aon plc (a)		34,455		5,008,379
Chubb, Ltd.		45,596		5,890,091
Prudential Financial, Inc. (a)		44,308		3,613,318
Tokio Marine Holdings, Inc.		8,700		413,559
Travelers Cos., Inc. (The) (a)		57,951		6,939,632
Unum Group		23,198		681,557
Zurich Insurance Group AG		6,277		1,875,503
				24,422,039
Interactive Media & Services—0.3%
Alphabet, Inc. - Class A (b)		1,956		2,043,942
Internet & Direct Marketing Retail—0.5%
Amazon.com, Inc. (b)		2,529		3,798,482
IT Services—2.3%
Accenture plc - Class A		43,120		6,080,351
Amdocs, Ltd.		30,237		1,771,284
Cognizant Technology Solutions Corp. - Class A		11,090		703,993
DXC Technology Co.		60,070		3,193,922
Fidelity National Information Services, Inc.		17,097		1,753,297
Fiserv, Inc. (b)		20,217		1,485,747
Visa, Inc. - Class A		9,114		1,202,501
Worldpay, Inc. - Class A (b)		11,611		887,429
				17,078,524
Leisure Products—0.1%
Brunswick Corp.		10,514		488,375
Life Sciences Tools & Services—0.8%
Thermo Fisher Scientific, Inc.		25,594		5,727,681
Machinery—1.2%
AGCO Corp.		12,807		712,966
Allison Transmission Holdings, Inc.		6,341		278,433
Deere & Co.		6,803		1,014,803
Illinois Tool Works, Inc. (a)		29,456		3,731,781
Ingersoll-Rand plc		14,049		1,281,690

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Machinery—(Continued)
Stanley Black & Decker, Inc. (a)		16,416	$	1,965,652
				8,985,325
Media—1.9%
Comcast Corp. - Class A		294,885		10,040,835
Interpublic Group of Cos., Inc. (The) (a)		53,948		1,112,947
Omnicom Group, Inc. (a)		35,401		2,592,769
				13,746,551
Metals & Mining—0.3%
Rio Tinto plc		43,609		2,079,315
Mortgage Real Estate Investment Trusts—0.1%
Annaly Capital Management, Inc. (a)		53,639		526,735
Multi-Utilities—0.5%
Engie S.A.		55,110		787,639
Public Service Enterprise Group, Inc.		23,213		1,208,237
Sempra Energy (a)		9,317		1,008,006
WEC Energy Group, Inc. (a)		12,307		852,383
				3,856,265
Multiline Retail—0.1%
Dollar Tree, Inc. (b)		9,754		880,981
Oil, Gas & Consumable Fuels—3.1%
Anadarko Petroleum Corp.		20,641		904,902
BP plc		338,214		2,133,935
Chevron Corp.		24,997		2,719,424
Eni S.p.A.		72,330		1,139,063
Enterprise Products Partners L.P.		105,663		2,598,253
EOG Resources, Inc.		26,521		2,312,896
EQT Midstream Partners LP		11,835		511,864
Equitrans Midstream Corp. (a) (b)		28,204		564,644
Exxon Mobil Corp.		39,807		2,714,439
Hess Corp. (a)		17,926		726,003
Marathon Petroleum Corp.		11,682		689,355
MPLX L.P.		21,604		654,601
Noble Energy, Inc. (a)		27,519		516,256
Occidental Petroleum Corp.		14,651		899,278
Phillips 66		11,218		966,431
Pioneer Natural Resources Co.		5,578		733,619
Plains All American Pipeline L.P.		41,309		827,832
Plains GP Holdings L.P. - Class A (b)		47,008		944,861
				22,557,656
Personal Products—0.0%
Coty, Inc. - Class A (a) (b)		45,906		301,143
Pharmaceuticals—4.5%
Bayer AG		24,182		1,676,808
Bristol-Myers Squibb Co.		68,893		3,581,058
Eli Lilly & Co.		36,016		4,167,772
Johnson & Johnson		66,662		8,602,731
Merck & Co., Inc.		22,219		1,697,754
Pharmaceuticals—(Continued)
Mylan NV (b)		19,932		546,137
Novartis AG		4,243		363,406
Pfizer, Inc.		245,676		10,723,757
Roche Holding AG		7,242		1,790,760
				33,150,183
Professional Services—0.2%
Equifax, Inc.		16,928		1,576,505
Road & Rail—1.1%
Canadian National Railway Co.		10,866		805,279
Union Pacific Corp.		52,433		7,247,814
				8,053,093
Semiconductors & Semiconductor Equipment—1.4%
Analog Devices, Inc. (a)		9,268		795,473
Intel Corp.		30,082		1,411,748
Marvell Technology Group, Ltd. (a)		43,493		704,152
Maxim Integrated Products, Inc. (a)		21,532		1,094,902
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)		70,512		2,602,598
Texas Instruments, Inc.		40,722		3,848,229
				10,457,102
Software—1.7%
Adobe, Inc. (b)		17,707		4,006,032
Check Point Software Technologies, Ltd. (b)		8,621		884,945
Microsoft Corp.		63,849		6,485,143
Oracle Corp.		28,465		1,285,195
				12,661,315
Specialty Retail—0.2%
Tractor Supply Co.		8,382		699,394
Urban Outfitters, Inc. (b)		20,610		684,252
				1,383,646
Technology Hardware, Storage & Peripherals—0.5%
Apple, Inc.		13,907		2,193,690
Samsung Electronics Co., Ltd.		15,964		455,373
Seagate Technology plc (a)		12,994		501,439
Western Digital Corp.		8,865		327,739
				3,478,241
Textiles, Apparel & Luxury Goods—0.4%
Hanesbrands, Inc.		34,084		427,073
LVMH Moet Hennessy Louis Vuitton SE		3,279		963,520
NIKE, Inc. - Class B		16,814		1,246,590
				2,637,183
Tobacco—1.6%
Altria Group, Inc. (a)		63,122		3,117,596
Japan Tobacco, Inc.		25,700		609,730
Philip Morris International, Inc.		118,038		7,880,217
				11,607,543

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares/ Principal Amount*		Value
Trading Companies & Distributors—0.0%
HD Supply Holdings, Inc. (b)		8,248	$	309,465
Total Common Stocks (Cost $357,049,871)				411,325,353
U.S. Treasury & Government Agencies—27.7%
Agency Sponsored Mortgage - Backed—13.8%
Fannie Mae 15 Yr. Pool 2.500%, TBA (c)		1,000,000		976,632
3.000%, 12/01/31		1,174,619		1,172,896
3.000%, TBA (c)		1,600,000		1,596,565
4.500%, 03/01/19		710		723
4.500%, 06/01/19		2,313		2,355
4.500%, 04/01/20		5,353		5,449
4.500%, 07/01/20		2,633		2,680
5.000%, 07/01/19		5,154		5,239
5.000%, 07/01/20		7,313		7,434
5.000%, 08/01/20		7,466		7,596
5.000%, 12/01/20		17,154		17,438
5.500%, 06/01/19		5,366		5,366
5.500%, 07/01/19		6,285		6,287
5.500%, 08/01/19		1,192		1,192
5.500%, 09/01/19		6,796		6,799
5.500%, 01/01/21		8,047		8,115
5.500%, 03/01/21		3,073		3,099
6.000%, 01/01/21		14,952		15,091
6.000%, 05/01/21		4,561		4,572
Fannie Mae 20 Yr. Pool 3.000%, 07/01/37		259,625		257,116
3.000%, 11/01/37		502,120		497,268
3.500%, 04/01/38		475,493		482,109
Fannie Mae 30 Yr. Pool 3.000%, 09/01/46		196,566		192,350
3.000%, 10/01/46		785,597		768,749
3.000%, 11/01/46		1,009,913		988,254
3.000%, 09/01/48		675,000		659,004
3.500%, 11/01/41		42,644		42,885
3.500%, 01/01/42		623,159		628,218
3.500%, 01/01/43		216,976		218,734
3.500%, 04/01/43		723,787		729,662
3.500%, 05/01/43		937,629		945,191
3.500%, 07/01/43		1,064,408		1,071,600
3.500%, 08/01/43		363,840		366,794
3.500%, 09/01/43		1,488,990		1,499,578
3.500%, 02/01/45		1,088,193		1,093,911
3.500%, 09/01/45		1,270,478		1,275,351
3.500%, 10/01/45		860,609		864,229
3.500%, 01/01/46		274,848		276,036
3.500%, 05/01/46		516,286		517,977
3.500%, 07/01/46		1,129,963		1,133,538
3.500%, 10/01/46		349,792		350,825
3.500%, 12/01/46		930,734		933,198
3.500%, 01/01/47		134,289		134,535
4.000%, 09/01/40		1,077,985		1,108,782
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 4.000%, 11/01/40		249,146		256,267
4.000%, 12/01/40		572,088		588,440
4.000%, 02/01/41		667,029		686,335
4.000%, 06/01/41		662,405		681,311
4.000%, 11/01/41		220,530		226,835
4.000%, 01/01/42		1,583,946		1,629,229
4.000%, 04/01/42		204,523		210,369
4.000%, 10/01/42		172,783		177,721
4.000%, 12/01/42		192,576		198,079
4.000%, 01/01/43		322,112		331,321
4.000%, 04/01/43		57,908		59,562
4.000%, 05/01/43		649,393		667,947
4.000%, 06/01/43		290,367		298,661
4.000%, 07/01/43		266,394		273,184
4.000%, 01/01/44		120,654		124,083
4.000%, 04/01/44		133,067		136,869
4.000%, 05/01/44		486,543		500,412
4.000%, 11/01/44		237,710		242,868
4.000%, 02/01/45		375,136		386,228
4.000%, 06/01/47		1,028,802		1,049,461
4.000%, 10/01/48		1,578,348		1,610,275
4.000%, TBA (c)		500,000		509,854
4.500%, 08/01/33		127,082		132,155
4.500%, 03/01/34		392,560		408,882
4.500%, 01/01/40		142,260		149,031
4.500%, 08/01/40		32,584		34,146
4.500%, 02/01/41		236,689		248,035
4.500%, 04/01/41		397,100		416,108
4.500%, 11/01/42		126,396		132,388
4.500%, 01/01/43		295,741		309,906
4.500%, 04/01/44		1,719,476		1,801,838
4.500%, 06/01/44		173,383		181,685
5.000%, 11/01/33		75,870		80,589
5.000%, 03/01/34		63,383		67,444
5.000%, 05/01/34		26,850		28,519
5.000%, 08/01/34		26,499		28,148
5.000%, 09/01/34		100,066		106,288
5.000%, 06/01/35		65,606		69,646
5.000%, 07/01/35		201,193		213,616
5.000%, 08/01/35		65,693		69,800
5.000%, 09/01/35		43,479		46,198
5.000%, 10/01/35		175,967		186,981
5.000%, 07/01/39		189,807		201,941
5.000%, 10/01/39		105,905		111,685
5.000%, 11/01/39		54,380		57,868
5.000%, 11/01/40		78,551		83,277
5.000%, 01/01/41		6,159		6,455
5.000%, 03/01/41		46,277		49,142
5.000%, TBA (c)		300,000		314,336
5.500%, 02/01/33		34,396		36,951
5.500%, 05/01/33		4,369		4,638
5.500%, 06/01/33		132,256		142,535
5.500%, 07/01/33		121,679		130,954
5.500%, 11/01/33		75,285		81,033

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 5.500%, 12/01/33		11,584	$	12,265
5.500%, 01/01/34		92,752		98,861
5.500%, 02/01/34		109,782		117,700
5.500%, 03/01/34		32,762		35,114
5.500%, 04/01/34		40,503		42,940
5.500%, 05/01/34		232,153		249,763
5.500%, 06/01/34		273,328		294,148
5.500%, 07/01/34		93,576		99,999
5.500%, 09/01/34		235,544		250,391
5.500%, 10/01/34		361,848		388,714
5.500%, 11/01/34		474,318		508,635
5.500%, 12/01/34		239,334		257,601
5.500%, 01/01/35		276,049		297,199
5.500%, 02/01/35		6,650		7,041
5.500%, 04/01/35		46,467		50,023
5.500%, 07/01/35		16,798		17,785
5.500%, 08/01/35		7,596		8,042
5.500%, 09/01/35		160,298		172,695
6.000%, 02/01/32		67,316		72,315
6.000%, 03/01/34		21,887		23,881
6.000%, 04/01/34		179,639		195,070
6.000%, 06/01/34		186,298		203,250
6.000%, 07/01/34		161,952		176,247
6.000%, 08/01/34		205,200		222,099
6.000%, 10/01/34		145,286		158,400
6.000%, 11/01/34		31,815		34,169
6.000%, 12/01/34		8,369		8,983
6.000%, 08/01/35		25,186		27,076
6.000%, 09/01/35		37,746		41,481
6.000%, 10/01/35		62,836		68,164
6.000%, 11/01/35		8,908		9,564
6.000%, 12/01/35		76,145		82,980
6.000%, 02/01/36		72,526		77,906
6.000%, 04/01/36		56,461		61,009
6.000%, 06/01/36		8,574		9,420
6.000%, 07/01/37		98,001		106,842
6.500%, 06/01/31		25,761		28,886
6.500%, 07/01/31		3,830		4,111
6.500%, 09/01/31		23,706		25,661
6.500%, 02/01/32		14,140		15,796
6.500%, 07/01/32		69,785		78,602
6.500%, 08/01/32		52,179		58,735
6.500%, 01/01/33		29,964		33,702
6.500%, 04/01/34		47,190		51,606
6.500%, 06/01/34		21,788		23,707
6.500%, 08/01/34		15,315		16,437
6.500%, 04/01/36		11,652		12,506
6.500%, 05/01/36		36,318		38,979
6.500%, 02/01/37		65,375		72,210
6.500%, 05/01/37		31,145		33,898
6.500%, 07/01/37		41,323		45,120
Fannie Mae Multifamily REMIC Trust (CMO) 2.641%, 1M LIBOR + 0.340%, 04/25/20 (d)		18,449		18,431
Fannie Mae Pool 2.280%, 11/01/26		154,128		146,523
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae Pool 2.410%, 05/01/23		89,731		88,557
2.550%, 05/01/23		144,053		142,957
2.700%, 07/01/25		121,000		119,114
4.600%, 09/01/19		123,998		125,093
5.000%, 03/01/26		82,578		89,982
Fannie Mae REMICS (CMO) 2.000%, 05/25/44		182,714		176,227
3.500%, 05/25/25		228,192		232,148
FannieMae-ACES (CMO) 2.597%, 12/25/26 (d)		511,000		486,284
Freddie Mac 15 Yr. Gold Pool 4.500%, 01/01/19		51		51
4.500%, 08/01/19		428		435
4.500%, 02/01/20		5,611		5,712
4.500%, 08/01/24		141,629		146,059
5.500%, 01/01/19		30		30
5.500%, 04/01/19		251		251
5.500%, 06/01/19		363		363
5.500%, 08/01/19		332		332
5.500%, 02/01/20		838		840
6.000%, 08/01/19		4,943		4,949
6.000%, 09/01/19		1,249		1,249
6.000%, 11/01/19		2,108		2,111
6.000%, 05/01/21		5,596		5,662
6.000%, 10/01/21		19,617		19,889
Freddie Mac 20 Yr. Gold Pool 3.000%, 01/01/38		831,345		822,378
3.500%, 11/01/37		553,410		559,284
3.500%, 05/01/38		166,249		168,553
4.000%, 08/01/37		111,848		115,357
Freddie Mac 30 Yr. Gold Pool 3.000%, 10/01/42		529,411		520,303
3.000%, 04/01/43		1,177,238		1,157,066
3.000%, 05/01/43		1,034,068		1,016,339
3.000%, 05/01/46		521,105		509,343
3.000%, 10/01/46		981,940		959,776
3.000%, 11/01/46		1,887,470		1,843,831
3.000%, 03/01/48		479,725		467,705
3.000%, 09/01/48		148,878		145,173
3.500%, 02/01/42		499,566		503,400
3.500%, 04/01/42		333,407		335,966
3.500%, 12/01/42		795,493		801,599
3.500%, 04/01/43		228,490		230,244
3.500%, 07/01/43		47,182		47,539
3.500%, 08/01/43		499,481		503,161
3.500%, 12/01/45		507,403		509,257
3.500%, 11/01/46		404,569		405,467
3.500%, 12/01/46		1,967,844		1,972,211
3.500%, 01/01/47		1,372,296		1,375,342
3.500%, 09/01/48		794,337		794,332
4.000%, 11/01/40		598,417		615,731
4.000%, 01/01/41		1,255,330		1,291,649
4.000%, 04/01/44		401,075		409,951
4.000%, 08/01/47		1,157,488		1,180,871
4.500%, 04/01/35		34,945		36,346

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac 30 Yr. Gold Pool 4.500%, 07/01/39		196,765	$	205,769
4.500%, 09/01/39		110,704		115,940
4.500%, 10/01/39		63,947		66,975
4.500%, 12/01/39		97,778		102,410
4.500%, 05/01/42		174,920		183,195
5.000%, 09/01/33		150,650		159,902
5.000%, 03/01/34		30,264		32,228
5.000%, 04/01/34		26,883		28,531
5.000%, 08/01/35		34,848		36,977
5.000%, 10/01/35		75,991		80,635
5.000%, 11/01/35		62,529		66,344
5.000%, 12/01/36		41,651		44,206
5.000%, 07/01/39		309,162		327,327
5.500%, 12/01/33		185,451		200,827
5.500%, 01/01/34		121,219		131,064
5.500%, 04/01/34		22,000		23,279
5.500%, 11/01/34		23,365		25,215
5.500%, 12/01/34		8,900		9,418
5.500%, 05/01/35		24,470		25,977
5.500%, 09/01/35		31,510		33,608
5.500%, 10/01/35		41,936		44,800
6.000%, 04/01/34		94,681		103,119
6.000%, 07/01/34		26,374		28,505
6.000%, 08/01/34		184,953		201,201
6.000%, 09/01/34		2,479		2,666
6.000%, 07/01/35		32,381		35,356
6.000%, 08/01/35		39,684		43,314
6.000%, 11/01/35		58,920		64,401
6.000%, 03/01/36		21,071		22,660
6.000%, 10/01/36		33,814		36,842
6.000%, 03/01/37		7,461		8,023
6.000%, 05/01/37		57,237		62,419
6.000%, 06/01/37		38,778		42,372
6.500%, 05/01/34		12,237		13,286
6.500%, 06/01/34		59,670		65,355
6.500%, 08/01/34		50,225		54,527
6.500%, 10/01/34		59,007		66,656
6.500%, 11/01/34		41,883		45,470
6.500%, 05/01/37		60,038		66,951
6.500%, 07/01/37		59,401		66,069
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO) 0.197%, 11/25/27 (d) (e)		5,207,000		95,134
0.240%, 12/25/27 (d) (e)		3,235,000		71,335
0.275%, 11/25/24 (d) (e)		4,908,000		81,502
0.279%, 09/25/27 (d) (e)		3,341,000		81,452
0.288%, 12/25/27 (d) (e)		3,579,000		90,566
0.292%, 11/25/27 (d) (e)		3,693,583		83,550
0.312%, 11/25/32 (d) (e)		2,840,428		89,835
0.315%, 08/25/24 (d) (e)		4,897,000		94,035
0.327%, 11/25/27 (d) (e)		3,361,585		88,064
0.330%, 08/25/27 (d) (e)		3,107,000		86,808
0.366%, 10/25/24 (d) (e)		6,509,054		117,731
0.369%, 09/25/27 (d) (e)		2,758,385		78,466
0.370%, 12/25/27 (d) (e)		5,736,309		162,826
0.415%, 08/25/24 (d) (e)		8,948,239		181,205
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO) 0.437%, 08/25/27 (d) (e)		2,148,354		68,654
0.509%, 07/25/24 (d) (e)		4,483,000		123,988
0.579%, 07/25/27 (d) (e)		3,880,187		163,086
0.618%, 07/25/24 (d) (e)		1,649,211		46,293
0.636%, 06/25/27 (d) (e)		4,356,000		217,769
0.753%, 06/25/27 (d) (e)		1,479,535		78,098
0.882%, 04/25/24 (d) (e)		1,977,058		74,820
1.869%, 11/25/19		311,354		308,744
2.456%, 08/25/19		219,110		218,334
2.510%, 11/25/22		489,000		481,675
2.670%, 12/25/24		507,000		496,759
2.673%, 03/25/26		676,000		655,354
2.716%, 06/25/22		346,271		343,938
2.791%, 01/25/22		474,000		472,134
3.010%, 07/25/25		134,000		133,288
3.060%, 07/25/23 (d)		219,000		219,888
3.064%, 08/25/24 (d)		255,000		255,716
3.111%, 02/25/23		695,000		699,451
3.117%, 06/25/27		354,000		350,093
3.151%, 11/25/25		317,000		317,645
3.171%, 10/25/24		424,000		426,664
3.187%, 09/25/27 (d)		242,000		239,758
3.194%, 07/25/27		389,000		386,408
3.224%, 03/25/27		334,000		333,356
3.244%, 08/25/27		920,000		916,418
3.250%, 04/25/23 (d)		803,000		812,005
3.300%, 10/25/26		310,000		311,184
3.303%, 11/25/27 (d)		85,000		84,875
3.320%, 02/25/23 (d)		227,000		230,182
3.413%, 12/25/26		248,000		250,839
3.430%, 01/25/27 (d)		242,707		245,774
3.458%, 08/25/23 (d)		835,000		851,566
3.650%, 02/25/28 (d)		285,000		292,060
3.900%, 06/25/51		528,000		551,053
5.085%, 03/25/19		1,021,047		1,020,218
Ginnie Mae I 30 Yr. Pool 3.500%, 12/15/41		331,919		335,749
3.500%, 02/15/42		106,615		107,840
4.500%, 09/15/33		71,791		74,947
4.500%, 11/15/39		216,339		225,886
4.500%, 03/15/40		245,546		259,464
4.500%, 04/15/40		257,637		269,016
4.500%, 06/15/40		106,794		111,618
5.000%, 03/15/34		24,562		26,039
5.000%, 06/15/34		59,212		62,783
5.000%, 12/15/34		26,344		27,922
5.000%, 06/15/35		7,010		7,291
5.500%, 11/15/32		129,143		137,460
5.500%, 08/15/33		202,575		218,937
5.500%, 12/15/33		108,808		117,742
5.500%, 09/15/34		94,447		102,163
5.500%, 10/15/35		11,468		12,180
6.000%, 12/15/28		27,630		29,957
6.000%, 12/15/31		26,598		28,958
6.000%, 03/15/32		1,088		1,167

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Ginnie Mae I 30 Yr. Pool 6.000%, 10/15/32		131,730	$	143,437
6.000%, 01/15/33		30,341		32,589
6.000%, 02/15/33		1,472		1,580
6.000%, 04/15/33		134,581		146,531
6.000%, 08/15/33		1,004		1,078
6.000%, 07/15/34		76,698		83,742
6.000%, 09/15/34		24,922		26,748
6.000%, 01/15/38		111,891		122,623
Ginnie Mae II 30 Yr. Pool 3.000%, 11/20/47		2,352,035		2,314,909
3.000%, 01/20/48		3,688,374		3,629,975
3.000%, 02/20/48		179,724		176,877
3.000%, 03/20/48		686,603		675,726
3.000%, 04/20/48		635,879		625,803
3.500%, 06/20/43		606,379		613,670
3.500%, 07/20/43		767,750		776,983
3.500%, 11/20/47		195,490		196,914
3.500%, 03/20/48		2,447,165		2,464,995
3.500%, 08/20/48		1,105,153		1,113,205
3.500%, 09/20/48		470,480		473,908
3.500%, 12/20/48		500,000		503,643
4.000%, 01/20/41		734,406		758,677
4.000%, 02/20/41		182,937		188,972
4.000%, 04/20/41		140,163		144,790
4.000%, 02/20/42		186,594		192,740
4.000%, 06/20/48		448,028		459,124
4.000%, 07/20/48		373,623		382,877
4.000%, 11/20/48		997,892		1,022,606
4.500%, 07/20/33		14,841		15,495
4.500%, 09/20/33		8,254		8,615
4.500%, 12/20/34		5,359		5,582
4.500%, 03/20/35		33,752		35,218
4.500%, 01/20/41		188,697		198,015
4.500%, TBA (c)		550,000		569,126
5.000%, 07/20/33		26,973		28,636
6.000%, 01/20/35		33,389		36,423
6.000%, 02/20/35		17,037		18,941
6.000%, 04/20/35		29,316		31,801
Government National Mortgage Association (CMO) 0.659%, 02/16/59 (d) (e)		2,436,978		147,589
				101,379,799
U.S. Treasury—13.9%
U.S. Treasury Bonds 2.500%, 02/15/45		68,000		61,741
2.875%, 05/15/43		14,475,100		14,156,077
2.875%, 11/15/46		5,439,000		5,297,910
3.000%, 11/15/45		350,000		349,907
3.000%, 02/15/48 (a)		350,000		348,736
3.500%, 02/15/39		5,026,000		5,504,880
4.500%, 02/15/36		179,000		220,820
4.500%, 08/15/39		743,000		927,167
5.000%, 05/15/37		232,000		304,812
5.250%, 02/15/29		16,000		19,569
U.S. Treasury—(Continued)
U.S. Treasury Bonds 5.375%, 02/15/31		276,000		350,816
6.250%, 08/15/23		80,000		92,923
U.S. Treasury Notes 1.750%, 11/30/21		28,134,000		27,565,323
1.750%, 09/30/22		1,741,000		1,695,065
2.000%, 11/15/26		1,875,000		1,791,103
2.250%, 08/15/27 (a)		733,000		709,917
2.500%, 08/15/23		16,705,000		16,699,418
3.125%, 05/15/21		3,504,000		3,555,420
3.500%, 05/15/20		22,011,000		22,284,041
				101,935,645
Total U.S. Treasury & Government Agencies (Cost $203,162,997)				203,315,444
Corporate Bonds & Notes—11.7%
Aerospace/Defense—0.2%
L3 Technologies, Inc. 3.850%, 06/15/23		862,000		863,288
United Technologies Corp. 4.625%, 11/16/48		562,000		543,479
				1,406,767
Agriculture—0.1%
Imperial Brands Finance plc 2.950%, 07/21/20 (144A) (a)		828,000		815,501
Auto Manufacturers—0.2%
General Motors Co.
5.150%, 04/01/38		235,000		200,969
6.750%, 04/01/46		374,000		362,449
General Motors Financial Co., Inc.
3.200%, 07/06/21		776,000		757,972
4.350%, 04/09/25		360,000		341,115
				1,662,505
Auto Parts & Equipment—0.1%
Lear Corp. 3.800%, 09/15/27		585,000		534,678
Banks—2.7%
ABN AMRO Bank NV 4.800%, 04/18/26 (144A)		800,000		798,648
Banco de Credito del Peru 5.375%, 09/16/20		835,000		861,720
Bank of America Corp.
3.004%, 3M LIBOR + 0.790%, 12/20/23 (d)		766,000		743,676
3.366%, 3M LIBOR + 0.810%, 01/23/26 (d)		591,000		565,289
3.500%, 04/19/26		583,000		561,505
4.100%, 07/24/23 (a)		1,270,000		1,287,148
4.125%, 01/22/24		1,357,000		1,375,399
5.490%, 03/15/19		196,000		196,889

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Banks—(Continued)
Bank of New York Mellon Corp. (The) 2.600%, 08/17/20		1,029,000	$	1,022,055
BBVA Bancomer S.A.
6.750%, 09/30/22 (144A) (a)		810,000		853,546
Goldman Sachs Group, Inc. (The) 3.850%, 01/26/27		616,000		579,748
JPMorgan Chase & Co. 3.200%, 01/25/23		1,756,000		1,730,318
3.782%, 3M LIBOR + 1.337%, 02/01/28 (d)		1,362,000		1,322,832
3.897%, 3M LIBOR + 1.220%, 01/23/49 (d)		400,000		351,339
KFW 4.875%, 06/17/19		1,290,000		1,303,747
Morgan Stanley 3.125%, 01/23/23		480,000		468,562
3.625%, 01/20/27		1,695,000		1,611,791
3.875%, 04/29/24		557,000		554,298
4.000%, 07/23/25 (a)		396,000		390,848
PNC Bank N.A. 2.300%, 06/01/20		719,000		709,213
Royal Bank of Scotland Group plc 3.875%, 09/12/23		1,128,000		1,081,331
UBS Group Funding Switzerland AG 3.491%, 05/23/23 (144A)		700,000		682,621
4.125%, 04/15/26 (144A) (a) (f)		838,000		833,009
4.253%, 03/23/28 (144A) (a)		200,000		197,314
				20,082,846
Beverages—0.3%
Anheuser-Busch InBev Worldwide, Inc. 8.000%, 11/15/39		706,000		895,355
Constellation Brands, Inc. 3.500%, 05/09/27		1,077,000		997,818
				1,893,173
Biotechnology—0.1%
Celgene Corp. 2.875%, 08/15/20 (a)		504,000		500,425
Building Materials—0.2%
CRH America Finance, Inc. 4.500%, 04/04/48 (144A)		362,000		322,208
Martin Marietta Materials, Inc. 3.500%, 12/15/27 (a)		297,000		270,943
Masco Corp. 4.375%, 04/01/26		623,000		623,371
				1,216,522
Chemicals—0.2%
SASOL Financing USA LLC 5.875%, 03/27/24		502,000		500,907
Sherwin-Williams Co. (The)
2.250%, 05/15/20		344,000		338,684
4.500%, 06/01/47		402,000		362,999
				1,202,590
Commercial Services—0.2%
ERAC USA Finance LLC 7.000%, 10/15/37 (144A)		1,115,000		1,387,567
Computers—0.3%
Apple, Inc.
2.850%, 02/23/23		1,176,000		1,161,515
3.350%, 02/09/27		745,000		728,845
3.850%, 05/04/43		370,000		352,187
				2,242,547
Diversified Financial Services—0.9%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust 3.650%, 07/21/27		520,000		450,672
Capital One Financial Corp.
2.500%, 05/12/20		689,000		679,986
3.750%, 03/09/27		820,000		762,023
Charles Schwab Corp. (The) 3.200%, 01/25/28 (a)		891,000		854,397
E*TRADE Financial Corp. 2.950%, 08/24/22		338,000		327,895
Intercontinental Exchange, Inc.
2.350%, 09/15/22		487,000		470,828
2.750%, 12/01/20		301,000		299,056
4.000%, 10/15/23		832,000		851,604
Raymond James Financial, Inc. 4.950%, 07/15/46		778,000		748,438
Visa, Inc. 3.150%, 12/14/25		983,000		966,452
				6,411,351
Electric—0.8%
Berkshire Hathaway Energy Co. 3.750%, 11/15/23 (a)		440,000		446,220
Duke Energy Corp. 2.650%, 09/01/26		131,000		119,326
Enel Finance International NV 4.875%, 06/14/29 (144A)		696,000		664,357
Exelon Corp. 3.400%, 04/15/26		1,137,000		1,081,513
Oncor Electric Delivery Co. LLC 5.750%, 03/15/29 (144A) (f)		795,000		928,433
PPL Capital Funding, Inc.
3.400%, 06/01/23		880,000		870,585
5.000%, 03/15/44		296,000		302,102
Progress Energy, Inc. 3.150%, 04/01/22		1,083,000		1,066,591
State Grid Overseas Investment, Ltd. 2.750%, 05/07/19 (144A) (f)		778,000		777,204
				6,256,331
Environmental Control—0.1%
Republic Services, Inc. 3.950%, 05/15/28 (a)		446,000		446,560

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Food—0.2%
Conagra Brands, Inc. 5.300%, 11/01/38		232,000	$	219,458
5.400%, 11/01/48		308,000		284,014
Danone S.A. 2.947%, 11/02/26 (144A)		1,133,000		1,034,297
Kraft Heinz Foods Co. 5.000%, 07/15/35		254,000		238,786
				1,776,555
Gas—0.0%
NiSource, Inc. 5.650%, 02/01/45		176,000		191,849
Healthcare-Products—0.8%
Abbott Laboratories 4.900%, 11/30/46 (a)		749,000		787,310
Becton Dickinson & Co. 2.675%, 12/15/19		520,000		515,063
3.125%, 11/08/21		344,000		339,257
4.669%, 06/06/47		729,000		686,590
Medtronic, Inc. 4.375%, 03/15/35		446,000		457,101
Thermo Fisher Scientific, Inc. 2.950%, 09/19/26		851,000		785,759
3.200%, 08/15/27		1,100,000		1,022,891
Zimmer Biomet Holdings, Inc. 3.550%, 04/01/25		955,000		908,075
3.554%, 3M LIBOR + 0.750%, 03/19/21 (d)		313,000		310,069
				5,812,115
Healthcare-Services—0.2%
Laboratory Corp. of America Holdings 3.200%, 02/01/22		213,000		211,379
3.250%, 09/01/24		558,000		534,005
4.700%, 02/01/45		267,000		248,882
Northwell Healthcare, Inc. 3.979%, 11/01/46		57,000		51,999
4.260%, 11/01/47		456,000		433,993
				1,480,258
Household Products/Wares—0.2%
Reckitt Benckiser Treasury Services plc 2.750%, 06/26/24 (144A)		348,000		328,876
3.625%, 09/21/23 (144A)		1,070,000		1,076,823
				1,405,699
Insurance—0.6%
American International Group, Inc. 4.125%, 02/15/24 (a)		750,000		753,019
4.875%, 06/01/22		1,770,000		1,836,332
Berkshire Hathaway, Inc. 3.125%, 03/15/26		390,000		378,192
Liberty Mutual Group, Inc. 4.850%, 08/01/44 (144A)		484,000		470,584
Insurance—(Continued)
Marsh & McLennan Cos., Inc. 4.800%, 07/15/21 (a)		920,000		948,093
				4,386,220
Internet—0.2%
Booking Holdings, Inc. 2.750%, 03/15/23		1,315,000		1,262,104
Investment Company Security—0.2%
Temasek Financial I, Ltd. 2.375%, 01/23/23 (144A)		1,790,000		1,733,369
Lodging—0.1%
Marriott International, Inc. 4.000%, 04/15/28 (a)		698,000		671,401
Machinery-Diversified—0.2%
CNH Industrial Capital LLC 4.200%, 01/15/24		675,000		667,030
Roper Technologies, Inc. 4.200%, 09/15/28		281,000		278,372
Wabtec Corp. 4.700%, 09/15/28		648,000		608,095
				1,553,497
Media—0.3%
Charter Communications Operating LLC / Charter Communications Operating Capital Corp. 4.908%, 07/23/25		523,000		519,813
Time Warner Entertainment Co. L.P. 8.375%, 07/15/33		1,240,000		1,512,771
				2,032,584
Mining—0.1%
Glencore Funding LLC 4.000%, 03/27/27 (144A) (a)		200,000		182,293
4.125%, 05/30/23 (144A)		684,000		671,680
				853,973
Oil & Gas—0.4%
BP Capital Markets plc 4.500%, 10/01/20		306,000		313,245
Eni S.p.A. 4.750%, 09/12/28 (144A)		617,000		603,504
Equinor ASA 7.750%, 06/15/23		100,000		118,249
Marathon Petroleum Corp. 3.625%, 09/15/24 (a)		858,000		834,808
4.750%, 09/15/44		583,000		514,626
Valero Energy Corp. 4.900%, 03/15/45		896,000		843,235
				3,227,667

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Pharmaceuticals—0.1%
Cigna Corp 4.125%, 11/15/25 (144A)		823,000	$	822,222
Pipelines—0.7%
APT Pipelines, Ltd. 4.200%, 03/23/25 (144A)		1,228,000		1,196,454
4.250%, 07/15/27 (144A)		93,000		90,542
Enterprise Products Operating LLC 6.500%, 01/31/19 (a)		908,000		909,997
Kinder Morgan Energy Partners L.P. 4.150%, 02/01/24		691,000		685,656
MPLX L.P. 4.500%, 04/15/38		297,000		259,666
ONEOK, Inc. 4.950%, 07/13/47		869,000		803,823
Sabine Pass Liquefaction LLC 5.000%, 03/15/27		1,100,000		1,104,221
				5,050,359
Real Estate Investment Trusts—0.3%
American Tower Corp. 3.000%, 06/15/23		415,000		399,257
3.600%, 01/15/28		415,000		387,979
Crown Castle International Corp. 3.650%, 09/01/27		1,014,000		940,555
GLP Capital L.P. / GLP Financing II, Inc. 5.300%, 01/15/29		574,000		561,389
				2,289,180
Retail—0.2%
Dollar Tree, Inc. 4.000%, 05/15/25		349,000		335,658
Home Depot, Inc. (The) 3.900%, 06/15/47		471,000		445,019
Tapestry, Inc. 4.125%, 07/15/27		572,000		535,511
				1,316,188
Semiconductors—0.2%
Broadcom Corp. / Broadcom Cayman Finance, Ltd. 3.500%, 01/15/28		837,000		725,609
Intel Corp. 4.100%, 05/11/47		591,000		568,082
				1,293,691
Shipbuilding—0.0%
Huntington Ingalls Industries, Inc. 3.483%, 12/01/27		250,000		232,857
Software—0.2%
Fidelity National Information Services, Inc. 4.500%, 08/15/46		210,000		191,239
4.750%, 05/15/48		498,000		463,543
Software—(Continued)
Microsoft Corp. 4.250%, 02/06/47		1,092,000		1,148,016
				1,802,798
Telecommunications—0.1%
AT&T, Inc. 5.450%, 03/01/47 (a)		896,000		876,218
Total Corporate Bonds & Notes (Cost $88,611,414)				86,130,167
Mortgage-Backed Securities—2.5%
Commercial Mortgage-Backed Securities—2.5%
AREIT Trust 3.287%, 1M LIBOR + 0.980%,, 11/14/35 (144A) (d) (f)		1,382,500		1,382,497
Bancorp Commercial Mortgage Trust 3.355%, 1M LIBOR + 0.900%, 09/15/35 (144A) (d) (f)		1,006,017		1,004,201
BDS, Ltd. 3.855%, 1M LIBOR + 1.400%, 08/15/35 (144A) (d) (f)		1,322,500		1,322,518
Benchmark Mortgage Trust 3.666%, 01/15/51 (d)		1,235,000		1,236,435
CD Commercial Mortgage Trust 3.514%, 05/10/50 (d)		1,519,456		1,509,088
Citigroup Commercial Mortgage Trust 3.471%, 10/12/50		334,128		329,698
Commercial Mortgage Pass-Through Certificates Mortgage Trust 3.510%, 09/10/50		980,547		963,618
Commercial Mortgage Trust 3.708%, 07/10/48		1,300,833		1,315,901
CSAIL Commercial Mortgage Trust 3.504%, 06/15/57		738,578		738,348
GS Mortgage Securities Corp. II 3.382%, 05/10/50		1,387,991		1,377,837
GS Mortgage Securities Trust 3.433%, 05/10/50		687,654		674,998
JPMBB Commercial Mortgage Securities Trust
3.227%, 10/15/48		1,036,740		1,021,945
3.494%, 01/15/48		1,590,000		1,591,741
JPMCC Commercial Mortgage Securities Trust 3.454%, 09/15/50		266,697		262,937
Morgan Stanley Bank of America Merrill Lynch Trust 3.536%, 11/15/52		519,442		512,240
Morgan Stanley Capital I, Inc. 3.530%, 06/15/50		470,148		465,029
UBS Commercial Mortgage Trust 3.679%, 12/15/50		1,210,000		1,207,021
Wells Fargo Commercial Mortgage Trust 3.540%, 05/15/48		1,410,327		1,411,845
Total Mortgage-Backed Securities (Cost $18,836,542)				18,327,897

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—1.9%

Security Description	Principal Amount*		Value
Asset-Backed - Automobile—0.3%
Chesapeake Funding II LLC
3.040%, 04/15/30 (144A) (f)		518,130	$	517,780
3.455%, 1M LIBOR + 1.000%, 06/15/28 (144A) (d) (f)		421,263		422,321
Ford Credit Auto Owner Trust
2.260%, 11/15/25 (144A)		550,000		548,309
2.310%, 04/15/26 (144A)		425,000		422,025
				1,910,435
Asset-Backed - Home Equity—0.1%
Bayview Financial Revolving Asset Trust 4.106%, 1M LIBOR + 1.600%, 12/28/40 (144A) (d) (f)		461,832		426,556
GMAC Home Equity Loan Trust 5.805%, 10/25/36 (d)		126,811		132,602
Home Equity Loan Trust 5.320%, 12/25/35 (d)		236,097		228,540
				787,698
Asset-Backed - Other—1.5%
ALM, Ltd. 2.604%, 3M LIBOR + 1.250%, 10/18/27 (144A) (d) (f)		849,000		834,770
3.836%, 3M LIBOR + 1.400%, 10/15/27 (144A) (d) (f)		1,395,000		1,380,329
American Tower Trust I 3.070%, 03/15/48 (144A)		1,000,000		984,464
Cutwater, Ltd.
3.656%, 3M LIBOR + 1.220%, 01/15/29 (144A) (d)		1,395,000		1,384,844
Dryden 55 CLO, Ltd. 3.456%, 3M LIBOR + 1.020%, 04/15/31 (144A) (d)		1,430,000		1,409,296
Dryden Senior Loan Fund 3.336%, 3M LIBOR + 0.900%, 04/15/29 (144A) (d) (f)		663,000		654,728
Figueroa CLO, Ltd. 3.936%, 3M LIBOR + 1.500%, 01/15/27 (144A) (d)		420,000		413,645
Fort Credit LLC 4.117%, 10/21/23 (144A)		518,500		515,789
KREF, Ltd. 3.402%, 1M LIBOR + 1.100%, 06/15/36 (144A) (d) (f)		691,000		690,988
Mountain Hawk CLO, Ltd. 4.245%, 3M LIBOR + 1.800%, 04/18/25 (144A) (d)		1,463,576		1,458,931
Navistar Financial Dealer Note Master Trust 3.136%, 1M LIBOR + 0.630%, 09/25/23 (144A) (d) (f)		808,000		807,696
Neuberger Berman CLO, Ltd. 3.236%, 3M LIBOR + 0.800%, 01/15/28 (144A) (d) (f)		600,000		592,727
Small Business Administration Participation Certificates 4.350%, 07/01/23		99,556		101,805
4.770%, 04/01/24		6,596		6,787
4.950%, 03/01/25		40,462		41,786
4.990%, 09/01/24		22,850		23,637
5.110%, 08/01/25		57,852		59,806
5.180%, 05/01/24		9,843		10,138
5.520%, 06/01/24		22,983		23,917
				11,396,083
Total Asset-Backed Securities (Cost $15,046,080)				14,094,216
Municipals—0.2%
Security Description	Principal Amount*/ Shares		Value
New Jersey State Turnpike Authority, Build America Bond 7.414%, 01/01/40 (Cost $1,092,733)		1,050,000		1,479,450
Convertible Preferred Stocks—0.2%
Electric Utilities—0.1%
NextEra Energy, Inc. 6.123%, 09/01/19		6,834		393,912
Multi-Utilities—0.1%
CenterPoint Energy, Inc. 7.000%, 09/01/21		18,520		932,852
Total Convertible Preferred Stocks (Cost $1,321,006)				1,326,764
Short-Term Investment—0.1%
Discount Note—0.1%
Federal Home Loan Bank 1.065%, 01/02/19 (g)		806,000		806,000
Total Short-Term Investments (Cost $805,953)				806,000
Securities Lending Reinvestments (h)—8.2%
Certificates of Deposit—2.9%
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (d)		2,000,000		2,000,798
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		1,000,000		999,905
BNP Paribas S.A. New York 2.647%, 1M LIBOR + 0.300%, 06/04/19 (d)		2,000,000		1,999,196
Credit Industriel et Commercial Zero Coupon, 01/25/19		1,480,842		1,497,450
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		2,000,000		1,999,852
Natixis S.A. New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (d)		1,000,000		999,370
2.810%, 1M LIBOR + 0.370%, 02/14/19 (d)		2,000,000		2,000,374
Royal Bank of Canada New York 2.650%, 1M LIBOR + 0.250%, 01/11/19 (d)		1,500,000		1,500,012
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (d)		2,000,000		1,999,942
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		1,500,000		1,499,449
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		1,985,555		1,989,140
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (d)		1,000,000		1,000,867
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		1,500,000		1,499,991
				20,986,346

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (h)—(Continued)

Security Description	Principal Amount*			Value
Commercial Paper—0.7%
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (d)		1,000,000		$	1,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (d)		2,000,000			2,000,186
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		1,500,000			1,500,368
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (d)		1,000,000			999,960
					5,500,514
Repurchase Agreements—4.6%
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $50,376; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $51,000.		50,000			50,000
Citigroup Global Markets, Ltd.
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $700,097; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $714,001.		700,000			700,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $1,000,138; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $1,020,000.		1,000,000			1,000,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $500,076; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $510,000.		500,000			500,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $1,395,509; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $1,423,166.		1,395,261			1,395,261
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,108,265; collateralized by various Common Stock with an aggregate market value of $1,210,000.		1,100,000			1,100,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $3,022,540; collateralized by various Common Stock with an aggregate market value of $3,300,000.		3,000,000			3,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $4,000,569; collateralized by various Common Stock with an aggregate market value of $4,452,849.		4,000,000			4,000,000
Repurchase Agreements—(Continued)
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $2,600,370; collateralized by various Common Stock with an aggregate market value of $2,894,352.		2,600,000			2,600,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,500,213; collateralized by various Common Stock with an aggregate market value of $1,669,818.		1,500,000	��		1,500,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $1,000,504; collateralized by various Common Stock with an aggregate market value of $1,113,322.		1,000,000			1,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $1,500,755; collateralized by various Common Stock with an aggregate market value of $1,669,983.		1,500,000			1,500,000
Nomura Securities International, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $6,000,983; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 6.500%, maturity dates ranging from 02/15/19 - 08/15/48, and an aggregate market value of $6,120,000.		6,000,000			6,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $1,100,155; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,205,023.		1,100,000			1,100,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $1,300,183; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,424,119.		1,300,000			1,300,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $5,000,703; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $5,477,379.		5,000,000			5,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $600,299; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $657,286.		600,000			600,000

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (h)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $600,299; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,862,309.		1,700,000	$	1,700,000
				34,045,261
Total Securities Lending Reinvestments (Cost $60,531,779)				60,532,121
Total Investments—108.4% (Cost $746,458,375)				797,337,412
Other assets and liabilities (net)—(8.4)%				(62,124,021	)
Net Assets—100.0%			$	735,213,391

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $59,599,422 and the collateral received consisted of cash in the amount of $60,511,658. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments
(b)	Non-income producing security.
(c)	TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(e)	Interest only security.
(f)	Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2018, the market value of restricted securities was $12,575,757, which is 1.7% of net assets. See details shown in the Restricted Securities table that follows.
(g)	The rate shown represents current yield to maturity.
(h)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $33,645,466, which is 4.6% of net assets.
(ACES)—	Alternative Credit Enhancement Securities
(ADR)—	American Depositary Receipt
(CLO)—	Collateralized Loan Obligation
(CMO)—	Collateralized Mortgage Obligation
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(REMIC)—	Real Estate Mortgage Investment Conduit

Restricted Securities	Acquisition Date		Principal Amount		Cost		Value
ALM, Ltd., 2.604%, 10/18/27		10/04/17	$	849,000	$	849,000	$	834,770
ALM, Ltd., 3.836%, 10/15/27		09/21/18		1,395,000		1,395,000		1,380,329
AREIT Trust, 3.287%, 11/14/35		10/30/18		1,382,500		1,382,500		1,382,497
BDS, Ltd., 3.855%, 08/15/35		07/25/18		1,322,500		1,323,456		1,322,518
Bancorp Commercial Mortgage Trust, 3.355%, 09/15/35		09/17/18		1,006,017		1,006,017		1,004,201
Bayview Financial Revolving Asset Trust, 4.106%, 12/28/40		03/01/06		461,832		461,832		426,556
Chesapeake Funding II LLC, 3.455%, 06/15/28		06/14/16		421,263		421,263		422,321
Chesapeake Funding II LLC, 3.040%, 04/15/30		04/11/18		518,130		518,114		517,780
Dryden Senior Loan Fund, 3.336%, 04/15/29		04/09/18		663,000		663,000		654,728
KREF, Ltd., 3.402%, 06/15/36		11/07/18		691,000		691,000		690,988
Navistar Financial Dealer Note Master Trust, 3.136%, 09/25/23		09/17/18		808,000		808,000		807,696
Neuberger Berman CLO, Ltd., 3.236%, 01/15/28		09/19/18		600,000		598,050		592,727
Oncor Electric Delivery Co. LLC, 5.750%, 03/15/29		11/27/18		795,000		912,477		928,433
State Grid Overseas Investment, Ltd., 2.750%, 05/07/19		04/28/14		778,000		777,466		777,204
UBS Group Funding Switzerland AG, 4.125%, 04/15/26		03/29/16		838,000		836,581		833,009
							$	12,575,757

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Aerospace & Defense	$	13,097,499	$	—	$	—	$	13,097,499
Air Freight & Logistics		1,680,539		—		—		1,680,539
Airlines		1,050,345		—		—		1,050,345
Auto Components		4,431,519		—		—		4,431,519
Automobiles		170,771		1,144,191		—		1,314,962
Banks		39,438,495		1,439,512		—		40,878,007
Beverages		3,176,117		2,998,593		—		6,174,710
Biotechnology		2,255,395		—		—		2,255,395
Building Products		3,982,054		—		—		3,982,054
Capital Markets		23,017,414		—		—		23,017,414
Chemicals		14,423,923		—		—		14,423,923
Commercial Services & Supplies		546,640		—		—		546,640
Communications Equipment		4,899,063		—		—		4,899,063
Consumer Finance		1,808,011		—		—		1,808,011
Containers & Packaging		883,695		—		—		883,695
Diversified Financial Services		—		1,733,384		—		1,733,384
Diversified Telecommunication Services		3,161,138		—		—		3,161,138
Electric Utilities		11,433,492		1,131,960		—		12,565,452
Electrical Equipment		5,544,671		352,535		—		5,897,206
Energy Equipment & Services		2,054,864		—		—		2,054,864
Entertainment		555,053		—		—		555,053
Equity Real Estate Investment Trusts		8,214,387		—		—		8,214,387
Food & Staples Retailing		1,404,648		—		—		1,404,648
Food Products		6,677,495		6,242,439		—		12,919,934
Health Care Equipment & Supplies		17,750,523		—		—		17,750,523
Health Care Providers & Services		12,822,407		—		—		12,822,407
Hotels, Restaurants & Leisure		4,148,534		—		—		4,148,534
Household Durables		2,035,174		—		—		2,035,174
Household Products		3,624,865		1,355,649		—		4,980,514
Industrial Conglomerates		8,831,069		—		—		8,831,069
Insurance		22,132,977		2,289,062		—		24,422,039
Interactive Media & Services		2,043,942		—		—		2,043,942
Internet & Direct Marketing Retail		3,798,482		—		—		3,798,482
IT Services		17,078,524		—		—		17,078,524
Leisure Products		488,375		—		—		488,375
Life Sciences Tools & Services		5,727,681		—		—		5,727,681
Machinery		8,985,325		—		—		8,985,325
Media		13,746,551		—		—		13,746,551
Metals & Mining		—		2,079,315		—		2,079,315
Mortgage Real Estate Investment Trusts		526,735		—		—		526,735
Multi-Utilities		3,068,626		787,639		—		3,856,265

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

MFS Total Return Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2			Level 3		Total
Multiline Retail	$	880,981	$	—		$	—	$	880,981
Oil, Gas & Consumable Fuels		19,284,658		3,272,998			—		22,557,656
Personal Products		301,143		—			—		301,143
Pharmaceuticals		29,319,209		3,830,974			—		33,150,183
Professional Services		1,576,505		—			—		1,576,505
Road & Rail		8,053,093		—			—		8,053,093
Semiconductors & Semiconductor Equipment		10,457,102		—			—		10,457,102
Software		12,661,315		—			—		12,661,315
Specialty Retail		1,383,646		—			—		1,383,646
Technology Hardware, Storage & Peripherals		3,022,868		455,373			—		3,478,241
Textiles, Apparel & Luxury Goods		1,673,663		963,520			—		2,637,183
Tobacco		10,997,813		609,730			—		11,607,543
Trading Companies & Distributors		309,465		—			—		309,465
Total Common Stocks		380,638,479		30,686,874			—		411,325,353
Total U.S. Treasury & Government Agencies*		—		203,315,444			—		203,315,444
Total Corporate Bonds & Notes*		—		86,130,167			—		86,130,167
Total Mortgage-Backed Securities*		—		18,327,897			—		18,327,897
Total Asset-Backed Securities*		—		14,094,216			—		14,094,216
Total Municipals		—		1,479,450			—		1,479,450
Total Convertible Preferred Stocks*		1,326,764		—			—		1,326,764
Total Short-Term Investment*		—		806,000			—		806,000
Total Securities Lending Reinvestments*		—		60,532,121			—		60,532,121
Total Investments	$	381,965,243	$	415,372,169		$	—	$	797,337,412
Collateral for Securities Loaned (Liability)	$	—	$	(60,511,658	)	$	—	$	(60,511,658	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

MFS Total Return Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	797,337,412
Cash		10,142
Cash denominated in foreign currencies (c)		65
Receivable for:
Investments sold		821,296
TBA securities sold		361,424
Fund shares sold		10,907
Dividends and interest		2,930,831
Prepaid expenses		2,157
Total Assets		801,474,234
Liabilities
Collateral for securities loaned		60,511,658
Payables for:
TBA securities purchased		4,314,511
Fund shares redeemed		632,082
Accrued Expenses:
Management fees		360,741
Distribution and service fees		107,714
Deferred trustees’ fees		111,586
Other expenses		222,551
Total Liabilities		66,260,843
Net Assets	$	735,213,391
Net Assets Consist of:
Paid in surplus	$	639,860,045
Distributable earnings (Accumulated losses)		95,353,346
Net Assets	$	735,213,391
Net Assets
Class A	$	160,713,634
Class B		207,901,736
Class E		22,490,054
Class F		344,107,967
Capital Shares Outstanding*
Class A		1,049,425
Class B		1,379,095
Class E		147,794
Class F		2,269,649
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	153.14
Class B		150.75
Class E		152.17
Class F		151.61

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $746,458,375.
(b)	Includes securities loaned at value of $59,599,422.
(c)	Identified cost of cash denominated in foreign currencies was $64.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	12,618,102
Interest		10,377,516
Securities lending income		220,298
Total investment income		23,215,916
Expenses
Management fees		4,624,488
Administration fees		35,785
Custodian and accounting fees		157,178
Distribution and service fees—Class B		586,371
Distribution and service fees—Class E		37,824
Distribution and service fees—Class F		778,341
Audit and tax services		65,808
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		90,697
Insurance		5,421
Miscellaneous		23,750
Total expenses		6,484,714
Less broker commission recapture		(1,466	)
Net expenses		6,483,248
Net Investment Income		16,732,668
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments		33,148,745
Foreign currency transactions		5,637
Net realized gain		33,154,382
Net change in unrealized depreciation on:
Investments		(95,584,078	)
Foreign currency transactions		(3,756	)
Net change in unrealized depreciation		(95,587,834	)
Net realized and unrealized loss		(62,433,452	)
Net Decrease in Net Assets From Operations	$	(45,700,784	)

(a) Net of foreign withholding taxes of $180,493.

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

MFS Total Return Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	16,732,668		$	16,377,955
Net realized gain		33,154,382			53,358,697
Net change in unrealized appreciation (depreciation)		(95,587,834	)		31,365,429
Increase (decrease) in net assets from operations		(45,700,784	)		101,102,081
From Distributions to Shareholders (a)
Class A		(14,737,131	)		(14,024,809	)
Class B		(19,453,121	)		(17,373,702	)
Class E		(2,097,343	)		(2,036,170	)
Class F		(32,316,162	)		(32,758,163	)
Total distributions		(68,603,757	)		(66,192,844	)
Decrease in net assets from capital share transactions		(35,848,597	)		(10,282,117	)
Total increase (decrease) in net assets		(150,153,138	)		24,627,120
Net Assets
Beginning of period		885,366,529			860,739,409
End of period	$	735,213,391		$	885,366,529	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		58,743		$	9,903,134			153,443		$	26,118,792
Reinvestments		91,705			14,737,131			83,730			14,024,809
Redemptions		(144,679	)		(24,334,597	)		(237,699	)		(40,759,034	)
Net increase (decrease)		5,769		$	305,668			(526	)	$	(615,433	)
Class B
Sales		54,637		$	9,037,288			184,798		$	31,144,654
Reinvestments		122,802			19,453,121			105,097			17,373,702
Redemptions		(236,470	)		(38,957,577	)		(203,455	)		(34,773,301	)
Net increase (decrease)		(59,031	)	$	(10,467,168	)		86,440		$	13,745,055
Class E
Sales		3,124		$	533,358			5,803		$	1,001,333
Reinvestments		13,124			2,097,343			12,219			2,036,170
Redemptions		(22,260	)		(3,717,856	)		(19,286	)		(3,325,803	)
Net decrease		(6,012	)	$	(1,087,155	)		(1,264	)	$	(288,300	)
Class F
Sales		93,601		$	15,608,427			131,860		$	22,684,980
Reinvestments		202,902			32,316,162			197,219			32,758,163
Redemptions		(436,754	)		(72,524,531	)		(457,959	)		(78,566,582	)
Net decrease		(140,251	)	$	(24,599,942	)		(128,880	)	$	(23,123,439	)
Decrease derived from capital shares transactions				$	(35,848,597	)				$	(10,282,117	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(4,594,873	)	$	(9,429,936	)
Class B		(5,313,686	)		(12,060,016	)
Class E		(640,383	)		(1,395,787	)
Class F		(10,139,950	)		(22,618,213	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $17,814,529 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

MFS Total Return Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	177.03		$	170.50		$	168.01		$	172.72		$	162.91
Income (Loss) from Investment Operations
Net investment income (a)		3.68			3.55			3.94	(b)		3.66			3.85
Net realized and unrealized gain (loss)		(12.86	)		16.87			10.93			(3.83	)		9.94
Total income (loss) from investment operations		(9.18	)		20.42			14.87			(0.17	)		13.79
Less Distributions
Distributions from net investment income		(4.04	)		(4.55	)		(5.10	)		(4.54	)		(3.98	)
Distributions from net realized capital gains		(10.67	)		(9.34	)		(7.28	)		0.00			0.00
Total distributions		(14.71	)		(13.89	)		(12.38	)		(4.54	)		(3.98	)
Net Asset Value, End of Period	$	153.14		$	177.03		$	170.50		$	168.01		$	172.72
Total Return (%) (c)		(5.57	)		12.44			9.20			(0.16	)		8.64
Ratios/Supplemental Data
Ratio of expenses to average net assets (%)		0.62			0.61			0.61			0.60			0.60
Ratio of net investment income to average net assets (%)		2.20			2.05			2.34	(b)		2.13			2.32
Portfolio turnover rate (%)		29	(d)		35	(d)		35	(d)		41	(d)		34	(d)
Net assets, end of period (in millions)	$	160.7		$	184.8		$	178.0		$	165.9		$	186.7
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	174.48		$	168.22		$	165.89		$	170.57		$	160.94
Income (Loss) from Investment Operations
Net investment income (a)		3.21			3.06			3.48	(b)		3.20			3.40
Net realized and unrealized gain (loss)		(12.66	)		16.66			10.77			(3.79	)		9.81
Total income (loss) from investment operations		(9.45	)		19.72			14.25			(0.59	)		13.21
Less Distributions
Distributions from net investment income		(3.61	)		(4.12	)		(4.64	)		(4.09	)		(3.58	)
Distributions from net realized capital gains		(10.67	)		(9.34	)		(7.28	)		0.00			0.00
Total distributions		(14.28	)		(13.46	)		(11.92	)		(4.09	)		(3.58	)
Net Asset Value, End of Period	$	150.75		$	174.48		$	168.22		$	165.89		$	170.57
Total Return (%) (c)		(5.81	)		12.17			8.92			(0.40	)		8.36
Ratios/Supplemental Data
Ratio of expenses to average net assets (%)		0.87			0.86			0.86			0.85			0.85
Ratio of net investment income to average net assets (%)		1.95			1.79			2.09	(b)		1.88			2.07
Portfolio turnover rate (%)		29	(d)		35	(d)		35	(d)		41	(d)		34	(d)
Net assets, end of period (in millions)	$	207.9		$	250.9		$	227.4		$	223.0		$	247.5

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

MFS Total Return Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	175.98		$	169.55		$	167.11		$	171.80		$	162.06
Income (Loss) from Investment Operations
Net investment income (a)		3.41			3.27			3.67	(b)		3.39			3.59
Net realized and unrealized gain (loss)		(12.78	)		16.79			10.86			(3.82	)		9.88
Total income (loss) from investment operations		(9.37	)		20.06			14.53			(0.43	)		13.47
Less Distributions
Distributions from net investment income		(3.77	)		(4.29	)		(4.81	)		(4.26	)		(3.73	)
Distributions from net realized capital gains		(10.67	)		(9.34	)		(7.28	)		0.00			0.00
Total distributions		(14.44	)		(13.63	)		(12.09	)		(4.26	)		(3.73	)
Net Asset Value, End of Period	$	152.17		$	175.98		$	169.55		$	167.11		$	171.80
Total Return (%) (c)		(5.72	)		12.28			9.03			(0.31	)		8.48
Ratios/Supplemental Data
Ratio of expenses to average net assets (%)		0.77			0.76			0.76			0.75			0.75
Ratio of net investment income to average net assets (%)		2.05			1.90			2.19	(b)		1.98			2.17
Portfolio turnover rate (%)		29	(d)		35	(d)		35	(d)		41	(d)		34	(d)
Net assets, end of period (in millions)	$	22.5		$	27.1		$	26.3		$	27.1		$	30.9
	Class F
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	175.36		$	168.99		$	166.59		$	171.25		$	161.54
Income (Loss) from Investment Operations
Net investment income (a)		3.31			3.17			3.57	(b)		3.29			3.50
Net realized and unrealized gain (loss)		(12.72	)		16.73			10.83			(3.79	)		9.84
Total income (loss) from investment operations		(9.41	)		19.90			14.40			(0.50	)		13.34
Less Distributions
Distributions from net investment income		(3.66	)		(4.19	)		(4.72	)		(4.16	)		(3.63	)
Distributions from net realized capital gains		(10.68	)		(9.34	)		(7.28	)		0.00			0.00
Total distributions		(14.34	)		(13.53	)		(12.00	)		(4.16	)		(3.63	)
Net Asset Value, End of Period	$	151.61		$	175.36		$	168.99		$	166.59		$	171.25
Total Return (%) (c)		(5.76	)		12.22			8.97			(0.35	)		8.42
Ratios/Supplemental Data
Ratio of expenses to average net assets (%)		0.82			0.81			0.81			0.80			0.80
Ratio of net investment income to average net assets (%)		2.00			1.85			2.14	(b)		1.93			2.12
Portfolio turnover rate (%)		29	(d)		35	(d)		35	(d)		41	(d)		34	(d)
Net assets, end of period (in millions)	$	344.1		$	422.6		$	429.0		$	450.4		$	524.7

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to $0.12 per share and 0.07% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 28%, 35%, 34%, 37%, and 25% for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively.

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MFS Total Return Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, E and F shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued on the basis of evaluated or composite bid quotations obtained from pricing services selected by the Adviser pursuant to the authorization of and subject to general oversight by the Board. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded

BHFTII-24

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Futures contracts that are traded on commodity exchanges are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses), andpaid-in surplus.Book-tax differences are primarily due to adjustments to prior period accumulated balances. These adjustments have no impact on net assets or the results of operations.

BHFTII-25

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sellsto-be-announced (“TBA”) mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase or reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation, and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

Mortgage-Related and Other Asset-Backed Securities - The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

TBA Purchase and Forward Sale Commitments - The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s Custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

BHFTII-26

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $34,045,261. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(51,779,730	)	$	—	$	—	$	—	$	(51,779,730	)
Corporate Bonds & Notes		(8,103,531	)		—		—		—		(8,103,531	)
U.S. Treasury & Government Agencies		(628,397	)		—		—		—		(628,397	)
Total	$	(60,511,658	)	$	—	$	—	$	—	$	(60,511,658	)
Total Borrowings	$	(60,511,658	)	$	—	$	—	$	—	$	(60,511,658	)
Gross amount of recognized liabilities for securities lending transactions										$	(60,511,658	)

BHFTII-27

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar rolls and TBA transactions but excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$106,945,935	$	131,834,588	$	118,775,659	$	193,934,707

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Company, the subadviser to the Portfolio, that amounted to $240,042 in sales of investments, which are included above, and resulted in realized losses of $79,732.

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2018 were as follows:

Purchases	Sales
$14,996,185	$	11,773,770

BHFTII-28

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$4,624,488		0.600	%	Of the first $250 million
		0.550	%	Of the next $500 million
		0.500	%	On amounts in excess of $750 million

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Massachusetts Financial Services Company (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Transfer Agency Agreement - Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class E and Class F shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class E and Class F shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class E and Class F shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.15% of average daily net assets in the case of Class E shares and 0.20% of average daily net assets in the case of Class F shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-29

Brighthouse Funds Trust II

MFS Total Return Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	750,051,513
Gross unrealized appreciation		80,408,989
Gross unrealized depreciation		(33,123,090	)
Net unrealized appreciation (depreciation)	$	47,285,899

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$20,298,439	$	22,797,540	$	48,305,318	$	43,395,304	$	68,603,757	$	66,192,844

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$17,379,312	$	30,801,703	$	47,283,920	$	—	$	95,464,935

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards Update No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)—Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently assessing the impact of ASU 2017-08, but does not believe the adoption will have a material impact on the Portfolios’ financial statements.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-30

Brighthouse Funds Trust II

MFS Total Return Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MFS Total Return Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MFS Total Return Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MFS Total Return Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-31

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-32

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-33

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-34

Brighthouse Funds Trust II

MFS Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-35

Brighthouse Funds Trust II

MFS Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-36

Brighthouse Funds Trust II

MFS Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MFS Total Return Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Massachusetts Financial Services Company regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the three-year and five-year periods ended June 30, 2018, but underperformed the median of its Performance Universe for theone-year period ended June 30, 2018. The Board also considered that the Portfolio outperformed the average of its Morningstar Category for the five-year period ended June 30, 2018, but underperformed the average of its Morningstar Category for theone-year and three-year periods ended June 30, 2018. The Board further considered that the Portfolio underperformed its blended benchmark, the S&P 500 Index (60%) and Bloomberg Barclays U.S. Aggregate Bond Index (40%), for theone-, three- and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median, and below the Expense Universe median and theSub-advised Expense Universe median. The Board further noted that the Portfolio’s total expenses (exclusive of12b-l fees) were below the Expense Group median, Expense Universe median, andSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractualsub-advisory fees were equal to the average of theSub-advised Expense Group and above the average of theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-37

Brighthouse Funds Trust II

MFS Value Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, D, and E shares of the MFS Value Portfolio returned-10.05%,-10.24%,-10.06%, and-10.20%, respectively. The Portfolio’s benchmark, the Russell 1000 Value Index¹, returned-8.27%.

MARKET ENVIRONMENT/CONDITIONS

During the reporting period, the U.S. Federal Reserve raised interest rates by 100 basis points, bringing the total number of rate hikes to nine since the central bank began to normalize monetary policy in late 2015. Economic growth rates in the U.S., Eurozone, and Japan remained above trend, despite a slowing in global growth, particularly toward the end of the period. Inflation remained contained, particularly outside the U.S. Late in the period, the European Central Bank halted its asset purchase program but issued forward guidance that it does not expect to raise interest rates at least until after the summer of 2019. The Bank of England (once) and the Bank of Canada (three times) each raised rates during the period. The European political backdrop became a bit more volatile, late in the period, spurred by concerns over cohesion in the eurozone after the election of an anti-establishment, Eurosceptic coalition government in Italy and widespread protests over stagnant wage growth in France.

Bond yields rose in the U.S. during most of the period but remained low by historical standards and slipped from their highs, late in the period, as market volatility increased. Yields in many developed markets fell. Outside of emerging markets, where spreads and currencies came under pressure, credit spreads remained quite tight until the end of the period, when thinner liquidity, lower oil prices, and concerns over high degrees of corporate leverage emerged. Growing concern over increasing global trade friction appeared to have weighed on business sentiment during the period’s second half, especially outside the U.S. Tighter financial conditions from rising U.S. rates and a strong dollar, combined with trade uncertainty, helped expose structural weaknesses in several emerging markets in the second half of the period.

Volatility increased at the end of the period, amid signs of slowing global economic growth and increasing trade tensions, which prompted a market setback shortly after U.S. markets set record highs in September. It was the second such equity market decline during the reporting period. The correction came despite a third consecutive quarter of strong growth in U.S. earnings per share. Strong earnings growth, combined with the market decline, brought U.S. equity valuations down from elevated levels, earlier in the period, to multiples more in line with long-term averages. While the U.S. economy held up better than most, global economic growth became less synchronized during the period, with Europe and China showing signs of a slowdown and some emerging markets coming under stress.

PORTFOLIOREVIEW/PERIOD-END POSITIONING

The Portfolio posted negative results and underperformed its benchmark, the Russell 1000 Value Index. Overall, a combination of sector allocation and stock selection led to the underperformance.

In the Consumer Staples sector, overweight positions in tobacco company Philip Morris International and global food company General Mills held back relative returns. An overweight position and stock selection in the Financialssector further hurt relative results. Within this sector, overweight positions in financial services firm Goldman Sachs Group and not owning shares of insurance and investment firm Berkshire Hathaway hindered relative performance. An underweight position in the Utilitiessector also weakened relative returns. However, there were no individual stocks within this sector that were among the Portfolio’s largest relative detractors during the period.

Stock selection in the Information Technology (“IT”) sector further hampered relative performance. Within this sector, not owning shares of network equipment company Cisco Systems and semiconductor company Intel weighed on relative results.

Stocks in other sectors that held back relative performance included an overweight position in oil field services company Schlumberger, an underweight position in telecommunications services provider Verizon Communications and holdings of global security company Northrop Grumman. Additionally, not owning shares of global media company 21st Century Fox hindered relative returns.

A combination of stock selection and an overweight position in the Health Caresector boosted relative performance. Within this sector, overweight positions in medical device maker Medtronic, life sciences supply company Thermo Fisher Scientific, pharmaceutical giant Pfizer, healthcare equipment manufacturer Danaher, and pharmaceutical and medical products maker Abbott Laboratories aided relative returns.

Stock selection in the Materials sector also helped relative returns. However, there were no individual stocks within this sector that were among the Portfolio’s largest relative contributors during the period.

Elsewhere, not owning shares of diversified industrial conglomerate General Electric and telecommunication services provider AT&T, and the Portfolio’s holdings of risk management and human capital consulting services provider Aon, bolstered relative performance. Additionally, overweight positions in power & natural gas distributor Duke Energy and global provider of banking and payment technologies Fidelity National Information Services also supported relative results.

BHFTII-1

Brighthouse Funds Trust II

MFS Value Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*—(Continued)

For the12-month period ended December 31, 2018, the significant changes to the Portfolio included our increased exposure to the Health Care, Utilities, and Industrials sectors with commensurate decreased exposure within Financials, Consumer Discretionary, and Consumer Staples. At the end of the period, the Portfolio’s top overweights were to Industrials, Financials, and Consumer Staples, while being most underweight Energy, Real Estate, and Consumer Discretionary. Relative sector positioning reflects the investment team’sbottom-up stock selection process rather than a reflection of anytop-down macroeconomic view.

Steven R. Gorham

Nevin P. Chitkara

Portfolio Managers

Massachusetts Financial Services Company

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

MFS Value Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 VALUE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
MFS Value Portfolio
Class A		-10.05		6.08		11.19		—
Class B		-10.24		5.81		10.92		—
Class D		-10.06		5.98		—		8.51
Class E		-10.20		5.91		11.03		—
Russell 1000 Value Index		-8.27		5.95		11.18		—

¹ The Russell 1000 Value Index is an unmanaged measure of the largest capitalized U.S. domiciled companies with a less than average growth orientation. Companies in this Index generally have a low price-to-book and price-to-earnings ratio, higher dividend yields and lower forecasted growth values.

² Inception dates of the Class A, Class B, Class D and Class E shares are 7/20/98, 4/28/08, 4/26/13 and 4/28/08, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
JPMorgan Chase & Co.		4.6
Johnson & Johnson		3.8
Wells Fargo & Co.		3.0
Accenture plc- Class A		2.9
Medtronic plc		2.9
Pfizer, Inc.		2.8
Comcast Corp. - Class A		2.6
Travelers Cos., Inc. (The)		2.4
Philip Morris International, Inc.		2.3
Chubb, Ltd.		2.3

Top Sectors

	% of Net Assets
Financials		28.4
Health Care		17.7
Industrials		15.6
Consumer Staples		10.1
Information Technology		8.5
Communication Services		5.3
Energy		4.4
Utilities		3.5
Materials		3.4
Consumer Discretionary		1.4

BHFTII-3

Brighthouse Funds Trust II

MFS Value Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

MFS Value Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.57	%	$	1,000.00	$	934.40	$	2.78
	Hypothetical*		0.57	%	$	1,000.00	$	1,022.33	$	2.91
Class B (a)	Actual		0.82	%	$	1,000.00	$	932.90	$	4.00
	Hypothetical*		0.82	%	$	1,000.00	$	1,021.07	$	4.18
Class D (a)	Actual		0.67	%	$	1,000.00	$	934.10	$	3.27
	Hypothetical*		0.67	%	$	1,000.00	$	1,021.83	$	3.41
Class E (a)	Actual		0.73	%	$	1,000.00	$	933.30	$	3.56
	Hypothetical*		0.73	%	$	1,000.00	$	1,021.53	$	3.72

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

MFS Value Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—98.7% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—3.4%
Lockheed Martin Corp.		71,191	$	18,640,651
Northrop Grumman Corp.		213,062		52,178,884
United Technologies Corp.		324,743		34,578,635
				105,398,170
Air Freight & Logistics—0.6%
United Parcel Service, Inc. - Class B (a)		178,400		17,399,352
Auto Components—0.9%
Aptiv plc		373,391		22,989,684
Lear Corp.		51,553		6,333,801
				29,323,485
Automobiles—0.1%
Harley-Davidson, Inc.		111,440		3,802,333
Banks—13.1%
Citigroup, Inc.		1,121,559		58,388,361
JPMorgan Chase & Co.		1,462,202		142,740,159
PNC Financial Services Group, Inc. (The)		401,324		46,918,789
U.S. Bancorp		1,462,518		66,837,073
Wells Fargo & Co.		2,030,199		93,551,570
				408,435,952
Beverages—1.9%
Diageo plc		1,159,192		41,201,761
PepsiCo, Inc.		153,960		17,009,501
				58,211,262
Building Products—1.6%
Johnson Controls International plc		1,676,691		49,713,888
Capital Markets—7.0%
Bank of New York Mellon Corp. (The) (a)		781,823		36,800,409
BlackRock, Inc.		76,522		30,059,372
Goldman Sachs Group, Inc. (The)		309,161		51,645,345
Moody’s Corp. (a)		153,524		21,499,501
Nasdaq, Inc.		435,323		35,509,297
State Street Corp.		417,308		26,319,616
T. Rowe Price Group, Inc. (a)		160,523		14,819,483
				216,653,023
Chemicals—3.2%
DowDuPont, Inc.		205,788		11,005,543
PPG Industries, Inc. (a)		580,314		59,325,500
Sherwin-Williams Co. (The)		75,100		29,548,846
				99,879,889
Consumer Finance—0.9%
American Express Co.		308,924		29,446,636
Containers & Packaging—0.2%
Crown Holdings, Inc. (a) (b)		150,511		6,256,742
Diversified Telecommunication Services—0.7%
Verizon Communications, Inc.		379,757		21,349,939
Electric Utilities—3.5%
Duke Energy Corp. (a)		706,371		60,959,817
Southern Co. (The) (a)		783,615		34,416,371
Xcel Energy, Inc. (a)		300,418		14,801,595
				110,177,783
Electrical Equipment—1.0%
Eaton Corp. plc		434,043		29,801,392
Energy Equipment & Services—1.1%
Schlumberger, Ltd.		966,626		34,875,866
Equity Real Estate Investment Trusts—0.4%
Public Storage (a)		61,953		12,539,907
Food Products—3.9%
Archer-Daniels-Midland Co.		389,379		15,952,858
Danone S.A.		210,270		14,819,710
General Mills, Inc. (a)		716,359		27,895,020
J.M. Smucker Co. (The) (a)		126,627		11,838,358
Nestle S.A.		611,060		49,679,695
				120,185,641
Health Care Equipment & Supplies—5.8%
Abbott Laboratories (a)		593,331		42,915,631
Danaher Corp.		469,222		48,386,173
Medtronic plc		980,138		89,153,352
				180,455,156
Health Care Providers & Services—2.3%
Cigna Corp.		265,281		50,382,086
McKesson Corp.		189,980		20,987,091
				71,369,177
Household Products—1.4%
Colgate-Palmolive Co.		106,338		6,329,238
Kimberly-Clark Corp.		96,822		11,031,898
Procter & Gamble Co. (The)		98,078		9,015,330
Reckitt Benckiser Group plc		206,782		15,791,115
				42,167,581
Industrial Conglomerates—3.1%
3M Co. (a)		200,157		38,137,915
Honeywell International, Inc.		447,179		59,081,289
				97,219,204
Insurance—7.3%
Aon plc		448,316		65,167,214
Chubb, Ltd.		544,977		70,400,129
Prudential Financial, Inc.		210,753		17,186,907
Travelers Cos., Inc. (The)		633,310		75,838,872
				228,593,122

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

MFS Value Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
IT Services—6.3%
Accenture plc - Class A		636,997	$	89,822,947
Amdocs, Ltd.		128,653		7,536,493
Cognizant Technology Solutions Corp. - Class A		246,170		15,626,872
DXC Technology Co.		219,250		11,657,522
Fidelity National Information Services, Inc.		380,332		39,003,047
Fiserv, Inc. (b)		452,911		33,284,429
				196,931,310
Life Sciences Tools & Services—1.3%
Thermo Fisher Scientific, Inc.		173,944		38,926,928
Machinery—3.2%
Illinois Tool Works, Inc. (a)		346,345		43,878,448
Ingersoll-Rand plc		313,637		28,613,103
Stanley Black & Decker, Inc.		237,640		28,455,014
				100,946,565
Media—4.7%
Comcast Corp. - Class A		2,351,067		80,053,831
Interpublic Group of Cos., Inc. (The) (a)		1,153,537		23,797,468
Omnicom Group, Inc. (a)		566,694		41,504,669
				145,355,968
Oil, Gas & Consumable Fuels—3.2%
Chevron Corp.		256,912		27,949,456
EOG Resources, Inc. (a)		314,447		27,422,923
Exxon Mobil Corp.		372,615		25,408,617
Occidental Petroleum Corp.		324,758		19,933,646
				100,714,642
Pharmaceuticals—8.4%
Johnson & Johnson		915,682		118,168,762
Merck & Co., Inc.		491,217		37,533,891
Novartis AG		94,853		8,124,006
Pfizer, Inc.		1,974,009		86,165,493
Roche Holding AG		40,785		10,085,080
				260,077,232
Professional Services—0.7%
Equifax, Inc.		237,577		22,125,546
Road & Rail—1.8%
Canadian National Railway Co. (a)		244,061		18,087,361
Union Pacific Corp.		266,633		36,856,679
				54,944,040
Semiconductors & Semiconductor Equipment—2.2%
Analog Devices, Inc. (a)		206,067		17,686,731
Texas Instruments, Inc.		538,629		50,900,440
				68,587,171
Security Description	Shares/ Principal Amount*		Value
Textiles, Apparel & Luxury Goods—0.3%
Hanesbrands, Inc.		754,712		9,456,541
Tobacco—3.0%
Altria Group, Inc. (a)		432,952		21,383,499
Philip Morris International, Inc.		1,089,172		72,713,123
				94,096,622
Trading Companies & Distributors—0.2%
HD Supply Holdings, Inc. (b)		174,213		6,536,472
Total Common Stocks (Cost $2,613,575,750)				3,071,954,537
Short-Term Investment—1.1%
Repurchase Agreement—1.1%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $34,273,652; collateralized by U.S. Treasury Note at 2.250%, maturing 12/31/23, with a market value of $34,958,543.		34,271,367		34,271,367
Total Short-Term Investments (Cost $34,271,367)				34,271,367
Securities Lending Reinvestments (c)—10.2%
Certificates of Deposit—6.1%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (d)		5,000,000		4,999,570
2.820%, 1M LIBOR + 0.350%, 05/20/19 (d)		5,000,000		4,999,895
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (d)		10,000,000		9,999,750
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (d)		2,000,000		1,999,999
3.072%, 3M LIBOR + 0.280%, 03/20/19 (d)		7,000,000		7,002,793
Barclays Bank plc 2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		3,500,000		3,499,667
Canadian Imperial Bank of Commerce 2.740%, 1M LIBOR + 0.270%, 07/19/19 (d)		3,000,000		2,998,782
China Construction Bank Corp. 2.550%, 01/07/19		4,000,000		4,000,000
Citibank N.A. 2.490%, 02/04/19		6,000,000		5,999,166
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (d)		2,500,000		2,500,007
2.642%, 1M LIBOR + 0.210%, 09/13/19 (d)		5,000,000		5,000,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		4,000,000		4,001,256
Credit Agricole S.A. 2.500%, 02/12/19		10,000,000		9,998,300
2.799%, 1M LIBOR + 0.320%, 05/21/19 (d)		4,000,000		4,000,252
Credit Suisse AG 2.620%, 04/01/19		5,000,000		4,997,410
2.890%, SOFR + 0.430%, 05/02/19 (d)		5,000,000		4,999,940

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

MFS Value Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		7,000,000	$	6,999,482
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		3,969,950		3,995,920
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (d)		2,000,000		2,000,012
Natixis New York 2.731%, 3M LIBOR + 0.190%, 02/01/19 (d)		3,000,000		2,999,328
2.810%, 1M LIBOR + 0.370%, 02/14/19 (d)		4,000,000		4,000,748
Nordea Bank New York 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		4,000,000		4,003,848
Royal Bank of Canada New York 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		7,000,000		6,992,839
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (d)		10,000,000		9,999,180
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (d)		5,000,000		4,997,780
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (d)		7,000,000		6,999,797
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (d)		18,000,000		17,999,640
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		8,000,000		7,997,064
2.700%, 02/25/19		5,000,000		5,000,460
Sumitomo Mitsui Banking Corp., New York 2.549%, 1M LIBOR + 0.200%, 04/03/19 (d)		2,000,059		1,999,408
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 02/08/19		2,974,209		2,991,480
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (d)		2,000,000		1,999,910
2.799%, 1M LIBOR + 0.450%, 04/03/19 (d)		5,000,000		5,002,890
2.822%, 1M LIBOR + 0.300%, 10/31/19 (d)		3,500,000		3,499,181
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		5,000,000		4,995,240
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		4,500,000		4,499,972
				189,970,966
Commercial Paper—1.7%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (d)		4,000,000		3,998,892
Banco Santander S.A. 2.500%, 01/16/19		6,955,278		6,991,572
2.740%, 02/07/19		5,957,987		5,982,528
Bank of China, Ltd. 2.690%, 01/17/19		9,932,750		9,988,260
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (d)		5,000,000		5,000,000
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (d)		10,000,000		10,000,930
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		12,000,000		12,002,940
				53,965,122
Repurchase Agreements—2.2%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $4,030,667; collateralized by various Common Stock with an aggregate market value of $4,400,733.		4,000,000		4,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $8,021,700; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $8,706,550.		8,000,000		8,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $3,224,043; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $3,264,000.		3,200,000		3,200,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $1,200,166; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $1,224,001.		1,200,000		1,200,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $1,800,249; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $1,836,000.		1,800,000		1,800,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $900,138; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $918,000.		900,000		900,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $9,763,871; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $9,957,379.		9,762,136		9,762,136
Goldman Sachs & Co. Repurchase Agreement dated 12/31/18 at 2.900%, due on 01/02/19 with a maturity value of $1,055,745; collateralized by U.S. Treasury Obligations at 4.500%, maturing 10/20/48, and an aggregate market value of $1,076,686.		1,055,575		1,055,575
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $3,627,048; collateralized by various Common Stock with an aggregate market value of $3,960,000.		3,600,000		3,600,000

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

MFS Value Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $5,037,567; collateralized by various Common Stock with an aggregate market value of $5,500,000.		5,000,000	$	5,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $20,002,844; collateralized by various Common Stock with an aggregate market value of $22,264,245.		20,000,000		20,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $3,400,484; collateralized by various Common Stock with an aggregate market value of $3,784,922.		3,400,000		3,400,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $2,300,323; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $2,519,595.		2,300,000		2,300,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $2,544,783; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $2,787,357.		2,544,425		2,544,425
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $2,000,281; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $2,190,952.		2,000,000		2,000,000
				68,762,136
Time Deposit—0.2%
Royal Bank of Canada 2.420%, 01/02/19		5,000,000		5,000,000
Total Securities Lending Reinvestments (Cost $317,716,255)				317,698,224
Total Investments—110.0% (Cost $2,965,563,372)				3,423,924,128
Other assets and liabilities (net)—(10.0)%				(312,450,170	)
Net Assets—100.0%			$	3,111,473,958

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $313,143,478 and the collateral received consisted of cash in the amount of $317,552,368. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(b)	Non-income producing security.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

MFS Value Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Aerospace & Defense	$	105,398,170	$	—		$	—	$	105,398,170
Air Freight & Logistics		17,399,352		—			—		17,399,352
Auto Components		29,323,485		—			—		29,323,485
Automobiles		3,802,333		—			—		3,802,333
Banks		408,435,952		—			—		408,435,952
Beverages		17,009,501		41,201,761			—		58,211,262
Building Products		49,713,888		—			—		49,713,888
Capital Markets		216,653,023		—			—		216,653,023
Chemicals		99,879,889		—			—		99,879,889
Consumer Finance		29,446,636		—			—		29,446,636
Containers & Packaging		6,256,742		—			—		6,256,742
Diversified Telecommunication Services		21,349,939		—			—		21,349,939
Electric Utilities		110,177,783		—			—		110,177,783
Electrical Equipment		29,801,392		—			—		29,801,392
Energy Equipment & Services		34,875,866		—			—		34,875,866
Equity Real Estate Investment Trusts		12,539,907		—			—		12,539,907
Food Products		55,686,236		64,499,405			—		120,185,641
Health Care Equipment & Supplies		180,455,156		—			—		180,455,156
Health Care Providers & Services		71,369,177		—			—		71,369,177
Household Products		26,376,466		15,791,115			—		42,167,581
Industrial Conglomerates		97,219,204		—			—		97,219,204
Insurance		228,593,122		—			—		228,593,122
IT Services		196,931,310		—			—		196,931,310
Life Sciences Tools & Services		38,926,928		—			—		38,926,928
Machinery		100,946,565		—			—		100,946,565
Media		145,355,968		—			—		145,355,968
Oil, Gas & Consumable Fuels		100,714,642		—			—		100,714,642
Pharmaceuticals		241,868,146		18,209,086			—		260,077,232
Professional Services		22,125,546		—			—		22,125,546
Road & Rail		54,944,040		—			—		54,944,040
Semiconductors & Semiconductor Equipment		68,587,171		—			—		68,587,171
Textiles, Apparel & Luxury Goods		9,456,541		—			—		9,456,541
Tobacco		94,096,622		—			—		94,096,622
Trading Companies & Distributors		6,536,472		—			—		6,536,472
Total Common Stocks		2,932,253,170		139,701,367			—		3,071,954,537
Total Short-Term Investment*		—		34,271,367			—		34,271,367
Total Securities Lending Reinvestments*		—		317,698,224			—		317,698,224
Total Investments	$	2,932,253,170	$	491,670,958		$	—	$	3,423,924,128
Collateral for Securities Loaned (Liability)	$	—	$	(317,552,368	)	$	—	$	(317,552,368	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

MFS Value Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	3,423,924,128
Cash		166,228
Receivable for:
Investments sold		100,099
Fund shares sold		286,617
Dividends and interest		7,926,083
Prepaid expenses		9,971
Total Assets		3,432,413,126
Liabilities
Collateral for securities loaned		317,552,368
Payables for:
Fund shares redeemed		950,941
Accrued Expenses:
Management fees		1,525,510
Distribution and service fees		200,990
Deferred trustees’ fees		266,117
Other expenses		443,242
Total Liabilities		320,939,168
Net Assets	$	3,111,473,958
Net Assets Consist of:
Paid in surplus	$	2,365,861,305
Distributable earnings (Accumulated losses)		745,612,653
Net Assets	$	3,111,473,958
Net Assets
Class A	$	2,144,807,145
Class B		840,016,909
Class D		10,993,566
Class E		115,656,338
Capital Shares Outstanding*
Class A		155,294,203
Class B		61,659,074
Class D		799,085
Class E		8,434,043
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	13.81
Class B		13.62
Class D		13.76
Class E		13.71

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $2,965,563,372.
(b)	Includes securities loaned at value of $313,143,478.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	84,802,216
Interest		480,897
Securities lending income		1,148,125
Total investment income		86,431,238
Expenses
Management fees		22,436,595
Administration fees		119,972
Custodian and accounting fees		285,379
Distribution and service fees—Class B		2,303,474
Distribution and service fees—Class D		13,581
Distribution and service fees—Class E		160,809
Audit and tax services		50,174
Legal		39,680
Trustees’ fees and expenses		37,006
Shareholder reporting		187,085
Insurance		22,174
Miscellaneous		38,869
Total expenses		25,694,798
Less management fee waiver		(3,238,620	)
Net expenses		22,456,178
Net Investment Income		63,975,060
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		225,032,558
Foreign currency transactions		(21,560	)
Net realized gain		225,010,998
Net change in unrealized depreciation on:
Investments		(620,868,685	)
Foreign currency transactions		(23,979	)
Net change in unrealized depreciation		(620,892,664	)
Net realized and unrealized loss		(395,881,666	)
Net Decrease in Net Assets From Operations	$	(331,906,606	)

(a) Net of foreign withholding taxes of $433,647.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

MFS Value Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	63,975,060		$	53,202,977
Net realized gain		225,010,998			231,093,103
Net change in unrealized appreciation (depreciation)		(620,892,664	)		252,359,200
Increase (decrease) in net assets from operations		(331,906,606	)		536,655,280
From Distributions to Shareholders (a)
Class A		(199,188,349	)		(190,392,577	)
Class B		(75,747,065	)		(65,150,486	)
Class D		(1,040,793	)		(1,164,674	)
Class E		(8,779,919	)		(5,400,287	)
Total distributions		(284,756,126	)		(262,108,024	)
Increase in net assets from capital share transactions		344,812,584			1,106,971
Total increase (decrease) in net assets		(271,850,148	)		275,654,227
Net Assets
Beginning of period		3,383,324,106			3,107,669,879
End of period	$	3,111,473,958		$	3,383,324,106	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		3,124,465		$	49,181,762			8,120,112		$	130,514,081
Shares issued through acquisition (c)		18,481,526			297,922,201			0			0
Reinvestments		13,217,541			199,188,349			12,379,231			190,392,577
Redemptions		(27,625,599	)		(433,593,718	)		(17,518,898	)		(279,874,097	)
Net increase		7,197,933		$	112,698,594			2,980,445		$	41,032,561
Class B
Sales		2,225,609		$	34,665,285			2,012,951		$	31,592,582
Shares issued through acquisition (c)		14,961,618			238,039,342			0			0
Reinvestments		5,087,110			75,747,065			4,283,398			65,150,486
Redemptions		(11,644,783	)		(181,299,374	)		(8,399,209	)		(132,006,373	)
Net increase (decrease)		10,629,554		$	167,152,318			(2,102,860	)	$	(35,263,305	)
Class D
Sales		7,677		$	118,378			42,587		$	664,439
Reinvestments		69,294			1,040,793			75,974			1,164,674
Redemptions		(180,442	)		(2,789,514	)		(158,528	)		(2,509,083	)
Net decrease		(103,471	)	$	(1,630,343	)		(39,967	)	$	(679,970	)
Class E
Sales		2,143,711		$	32,230,864			148,686		$	2,364,771
Shares issued through acquisition (c)		2,867,541			45,909,325			0			0
Reinvestments		586,109			8,779,919			353,191			5,400,287
Redemptions		(1,315,647	)		(20,328,093	)		(743,453	)		(11,747,373	)
Net increase (decrease)		4,281,714		$	66,592,015			(241,576	)	$	(3,982,315	)
Increase derived from capital shares transactions				$	344,812,584					$	1,106,971

Please see following page for Statement of Changes in Net Assets footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

MFS Value Portfolio

Statements of Changes in Net Assets

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(48,171,616	)	$	(142,220,961	)
Class B		(15,050,267	)		(50,100,219	)
Class D		(284,067	)		(880,607	)
Class E		(1,292,093	)		(4,108,194	)

(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $52,698,926 as of December 31, 2017.
(c)	See Note 8 of the Notes to Financial Statements.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

MFS Value Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.63		$	15.31		$	15.09		$	18.38		$	17.75
Income (Loss) from Investment Operations
Net investment income (a)		0.30			0.27			0.34	(b)		0.31			0.43
Net realized and unrealized gain (loss)		(1.87	)		2.38			1.68			(0.23	)		1.36
Total income (loss) from investment operations		(1.57	)		2.65			2.02			0.08			1.79
Less Distributions
Distributions from net investment income		(0.24	)		(0.34	)		(0.36	)		(0.50	)		(0.31	)
Distributions from net realized capital gains		(1.01	)		(0.99	)		(1.44	)		(2.87	)		(0.85	)
Total distributions		(1.25	)		(1.33	)		(1.80	)		(3.37	)		(1.16	)
Net Asset Value, End of Period	$	13.81		$	16.63		$	15.31		$	15.09		$	18.38
Total Return (%) (c)		(10.05	)		18.00			14.39			(0.15	)		10.81
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.66			0.72			0.72			0.72			0.72
Net ratio of expenses to average net assets (%) (d)		0.57			0.58			0.58			0.58			0.58
Ratio of net investment income to average net assets (%)		1.89			1.70			2.25	(b)		1.87			2.49
Portfolio turnover rate (%)		7			13			14			12			12
Net assets, end of period (in millions)	$	2,144.8		$	2,462.2		$	2,222.2		$	2,218.1		$	2,493.9
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.41		$	15.14		$	14.94		$	18.22		$	17.61
Income (Loss) from Investment Operations
Net investment income (a)		0.25			0.23			0.30	(b)		0.27			0.37
Net realized and unrealized gain (loss)		(1.83	)		2.33			1.66			(0.23	)		1.36
Total income (loss) from investment operations		(1.58	)		2.56			1.96			0.04			1.73
Less Distributions
Distributions from net investment income		(0.20	)		(0.30	)		(0.32	)		(0.45	)		(0.27	)
Distributions from net realized capital gains		(1.01	)		(0.99	)		(1.44	)		(2.87	)		(0.85	)
Total distributions		(1.21	)		(1.29	)		(1.76	)		(3.32	)		(1.12	)
Net Asset Value, End of Period	$	13.62		$	16.41		$	15.14		$	14.94		$	18.22
Total Return (%) (c)		(10.24	)		17.58			14.10			(0.36	)		10.56
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.91			0.97			0.97			0.97			0.97
Net ratio of expenses to average net assets (%) (d)		0.82			0.83			0.83			0.83			0.83
Ratio of net investment income to average net assets (%)		1.65			1.45			2.01	(b)		1.62			2.16
Portfolio turnover rate (%)		7			13			14			12			12
Net assets, end of period (in millions)	$	840.0		$	837.6		$	804.2		$	739.3		$	798.0

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

MFS Value Portfolio

Financial Highlights

Selected per share data
	Class D
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.56		$	15.26		$	15.05		$	18.33		$	17.71
Income (Loss) from Investment Operations
Net investment income (a)		0.28			0.25			0.32	(b)		0.29			0.41
Net realized and unrealized gain (loss)		(1.84	)		2.36			1.67			(0.22	)		1.35
Total income (loss) from investment operations		(1.56	)		2.61			1.99			0.07			1.76
Less Distributions
Distributions from net investment income		(0.23	)		(0.32	)		(0.34	)		(0.48	)		(0.29	)
Distributions from net realized capital gains		(1.01	)		(0.99	)		(1.44	)		(2.87	)		(0.85	)
Total distributions		(1.24	)		(1.31	)		(1.78	)		(3.35	)		(1.14	)
Net Asset Value, End of Period	$	13.76		$	16.56		$	15.26		$	15.05		$	18.33
Total Return (%) (c)		(10.06	)		17.81			14.23			(0.20	)		10.69
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.76			0.82			0.82			0.82			0.82
Net ratio of expenses to average net assets (%) (d)		0.67			0.68			0.68			0.68			0.68
Ratio of net investment income to average net assets (%)		1.78			1.60			2.15	(b)		1.77			2.34
Portfolio turnover rate (%)		7			13			14			12			12
Net assets, end of period (in millions)	$	11.0		$	15.0		$	14.4		$	14.7		$	16.8
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	16.52		$	15.22		$	15.01		$	18.29		$	17.67
Income (Loss) from Investment Operations
Net investment income (a)		0.27			0.24			0.31	(b)		0.29			0.40
Net realized and unrealized gain (loss)		(1.85	)		2.36			1.67			(0.23	)		1.35
Total income (loss) from investment operations		(1.58	)		2.60			1.98			0.06			1.75
Less Distributions
Distributions from net investment income		(0.22	)		(0.31	)		(0.33	)		(0.47	)		(0.28	)
Distributions from net realized capital gains		(1.01	)		(0.99	)		(1.44	)		(2.87	)		(0.85	)
Total distributions		(1.23	)		(1.30	)		(1.77	)		(3.34	)		(1.13	)
Net Asset Value, End of Period	$	13.71		$	16.52		$	15.22		$	15.01		$	18.29
Total Return (%) (c)		(10.20	)		17.80			14.20			(0.27	)		10.63
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.81			0.87			0.87			0.87			0.87
Net ratio of expenses to average net assets (%) (d)		0.73			0.73			0.73			0.73			0.73
Ratio of net investment income to average net assets (%)		1.77			1.55			2.10	(b)		1.72			2.28
Portfolio turnover rate (%)		7			13			14			12			12
Net assets, end of period (in millions)	$	115.7		$	68.6		$	66.9		$	66.0		$	78.0

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.01% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MFS Value Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, D and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost

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Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus.Book-tax differences are primarily due to merger adjustments. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-16

Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $34,271,367. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $68,762,136. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

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Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	257,412,218	$	0	$	710,095,806

With respect to the Portfolio’s merger with MFS Value Portfolio II (see Note 8) on April 27, 2018, the Portfolio acquired long-term securities with a cost of $542,946,988 that are not included in the above purchases values.

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Company, the subadviser to the Portfolio, that amounted to $385,360 in purchases of investments and $5,016,440 in sales of investments, which are included above, and resulted in realized gains of $2,054,842.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with (the “Adviser”) with respect to the Portfolio. For providing investment management services to the Portfolio, the Adviser receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$22,436,595		0.700	%	First $250 million
		0.650	%	Of the next $500 million
		0.600	%	On amounts in excess of $750 million

Prior to April 30, 2018, the Adviser received monthly compensation at the following annual rates:

% per annum	Average Daily Net Assets
0.750%	Of the first $250 million
0.700%	Of the next $2.25 billion
0.675%	Of the next $2.5 billion
0.650%	On amounts in excess of $5 billion

The Adviser has entered into an investment subadvisory agreement with respect to managing the Portfolio. Massachusetts Financial Services Company (the “Subadviser”) is compensated by the Adviser to provide subadvisory services for the Portfolio.

BHFTII-18

Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.050%	On the first $200 million
0.075%	On the next $50 million
0.025%	On the next $500 million
(0.025)%	On the next $750 million
0.100%	On the next $1.5 billion
0.125%	On amounts in excess of $3 billion

Prior to April 30, 2018, the Adviser had agreed, for the period September 1, 2017 to April 29, 2018, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.100%	On the first $200 million
0.125%	On the next $50 million
0.075%	On the next $1.25 billion
0.200%	On the next $1 billion
0.175%	On the next $500 million
0.200%	On the next $2 billion
0.175%	On amounts in excess of $5 billion

Fees waived for the year ended December 31, 2018 amounted to $3,104,568 and are included in the amount shown as a management fee waiver in the Statement of Operations.

Additionally, the Subadviser had agreed, for the period from September 1, 2017 through April 29, 2018, to waive a portion of the subadvisory fees payable to the Subadviser with respect to the Portfolio and the MFS Value Portfolio II, another series of the Trust, reflecting the difference, if any, between the aggregate subadvisory fees payable by the Adviser to the Subadviser individually with respect to the Portfolio and the MFS Value Portfolio II and the subadvisory fees that would be payable by the Adviser to the Subadviser if the assets of the Portfolio and the MFS Value Portfolio II were aggregated for purposes of calculating such advisory fees and then apportioning the resulting subadvisory fee based on average daily net assets of the two portfolios. The Adviser had agreed to reduce its management fee for the Portfolio by the amount waived by the Subadviser for the Portfolio pursuant to this voluntary subadvisory fee waiver. Fees waived for the year ended December 31, 2018 amounted to $134,052 and are included in the amount shown as a

management fee waiver in the Statement of Operations. This waiver had no impact on the net ratio of expenses to average net assets as shown in the Financial Highlights for the year ended December 31, 2018.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class D and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class D and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class D and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in

BHFTII-19

Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	2,967,532,830
Gross unrealized appreciation		606,231,976
Gross unrealized depreciation		(149,840,678	)
Net unrealized appreciation (depreciation)	$	456,391,298

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$55,302,970	$	64,798,043	$	229,453,156	$	197,309,981	$	284,756,126	$	262,108,024

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$63,644,096	$	225,866,683	$	456,367,993	$	—	$	745,878,772

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Acquisition

At the close of business on April 27, 2018, the Portfolio, with aggregate Class A, Class B, Class D and Class E net assets of $2,331,861,008, $782,456,827, $13,632,897 and $63,261,629, respectively, acquired all of the assets and liabilities of MFS Value Portfolio II, a series of the Brighthouse Funds Trust II.

The acquisition was accomplished by atax-free exchange of 18,481,526 Class A shares of the Portfolio (valued at $297,922,201) for 46,681,887 Class A shares of MFS Value Portfolio II, 14,961,618 Class B shares of the Portfolio (valued at $238,039,342) for 37,761,303 Class B shares of MFS Value Portfolio II and 2,867,541 Class E shares of the Portfolio (valued at $45,909,325) for 7,236,556 Class E shares of MFS Value Portfolio II. Each shareholder of MFS Value Portfolio II received shares of the Portfolio with the same class designation and at the respective Class NAV, as determined at the close of business on April 27, 2018. The transaction was part of a restructuring designed to eliminate the offering of overlapping portfolios in the Brighthouse Financial, Inc. family of funds with similar investment objectives and similar investment strategies that serve as funding vehicles for insurance contracts that are offered by affiliates of Brighthouse. Some of the investments held by MFS Value Portfolio II may have been purchased or sold prior to the acquisition for the purpose of complying with the anticipated investment policies or limitations of the Portfolio after the acquisition. If such purchases or sales occurred, the transaction costs were borne by MFS Value Portfolio II. All other costs associated with the merger were not borne by the shareholders of either Portfolio.

MFS Value Portfolio II’s net assets on April 27, 2018, were $297,922,201, $238,039,342 and $45,909,325 for Class A, Class B and Class E shares respectively, including investments valued at $581,700,541 with a cost basis of $544,585,228. For financial reporting purposes,

BHFTII-20

Brighthouse Funds Trust II

MFS Value Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

assets received, liabilities assumed and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received by the Portfolio from MFS Value Portfolio II were carried forward to align ongoing reporting of the Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of the Portfolio immediately after the acquisition were $3,773,083,229, which included $37,115,313 of acquired unrealized appreciation on investments and foreign currency transactions.

Assuming the acquisition had been completed on January 1, 2018, the Portfolio’spro-forma results of operations for the year ended December 31, 2018 are as follows:

Net Investment income	$	67,291,557	(a)
Net realized and unrealized loss on investments	$	(417,151,867	)(b)
Net decrease in net assets from operations	$	(349,860,310	)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of MFS Value Portfolio II that have been included in the Portfolio’s Statement of Operations since April 30, 2018.

(a)	$63,975,060 net investment income as reported at December 31, 2018, plus $3,020,381 from MFS Value Portfolio IIpre-merger net investment income, plus $171,768 in lower net advisory fees, plus $124,348 ofpro-forma eliminated other expenses.
(b)	$458,337,451 unrealized appreciation included within distributable earnings (accumulated losses) at December 31, 2018, minus $1,105,285,182pro-forma December 31, 2017 unrealized appreciation, plus $225,010,998 net realized gain as reported at December 31, 2018, plus $4,784,866 in net realized gain from MFS Value Portfolio IIpre-merger.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-21

Brighthouse Funds Trust II

MFS Value Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of MFS Value Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MFS Value Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MFS Value Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-22

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-23

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-24

Brighthouse Funds Trust II

MFS Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-25

Brighthouse Funds Trust II

MFS Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-26

Brighthouse Funds Trust II

MFS Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

MFS Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Massachusetts Financial Services Company regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the three-year and five-year periods ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Russell 1000 Value Index, for the five-year period ended September 30, 2018, and underperformed its benchmark for theone-year and three-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-l fees) were below the Expense Group median, Expense Universe median, andSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board took into account that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-27

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Managed by Neuberger Berman Management LLC

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Neuberger Berman Genesis Portfolio returned-6.70%,-6.98%, and-6.89%, respectively. The Portfolio’s benchmark, the Russell 2000 Value Index¹, returned-12.86%.

MARKET ENVIRONMENT / CONDITIONS

The U.S. stock market generated strong results over the first nine months of the year, reaching several newall-time highs. This rally was driven by generally robust corporate earnings, partially fueled by the 2017 tax reform bill. However, the market then reversed course and experienced a broad-based decline over the last three months of 2018.

A number of issues negatively impacted investor sentiment, including moderating global growth, ongoing global trade tensions, concerns over future Federal Reserve monetary tightening, and a partial U.S. government shutdown. All told, the S&P 500 Index fell 13.52% in the fourth quarter, pushing its 2018 return to-4.38%.Small-cap stocks significantly underperformed the overall stock market over the year, as the Russell 2000 Index returned-11.01%. Investor sentiment for smaller companies plunged during the fourth quarter given rising interest rates and fears of a recession. For the year,small-cap growth and value stocks, as the measured by the Russell 2000 Growth and Value Indexes, returned-9.31% and-12.86%, respectively.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

While the Portfolio posted a negative absolute return during the year, it substantially outperformed the Russell 2000 Value Index. For the year as a whole, less speculative, less cyclical, higher quality companies outperformed. This was especially true during the second half of the year. During that time, companies with higher returns on equity and less leverage were the market leaders, especially lower beta (lower risk) names. This played into our long-term investment philosophy and, against this backdrop, our relative outperformance was driven by positive stock selection.

Within the Health Care sector, the lack of traditional, speculative biotechnology companies added the most value, as these names saw their share prices fall sharply during the period. Within the Consumer Staples sector, a number of “steady-eddie” household and food product holdings outperformed. Positive relative results in the Information Technology (“IT”) sector was driven by outperformance from the Portfolio’s software companies. There were no sectors that detracted from the Portfolio’s relative returns from a stock selection perspective during the year.

Examples of individual stocks that contributed to the Portfolio’s absolute performance during the year included Exponent, Inc., Church & Dwight Co., Inc., and Haemonetics Corp. Exponent is a consulting firm that provides solutions to complex problems. The company is the dominant player in its niche, as it provides engineering and scientific work that is related to litigation, regulation and design. The stock performed well during the year, as revenue growth accelerated due to strength in emerging technology areas (e.g. consumer electronics, autonomous vehicles) as well as increased benefits from interdisciplinary efforts, which is a differentiating factor versus other consulting firms. Church & Dwight is a manufacturer of household and personal care products. The company has a durable business model with a balanced portfolio of value-oriented and premium brands. The company’s brands, led by iconic Arm & Hammer, have significant “equity” with consumers. The stock rallied over the year, as the company continued to deliver solid results, driven bybest-in-class, broad-based revenue growth. Haemonetics is a leading supplier of blood management solutions, including systems and consumables used in the collection and processing of blood into its components. The majority of its revenues are recurring in nature. Under new leadership, the company has stabilized its donor business, improved organic growth and profitability, and is investing in platforms (plasma, hemostasis management) with promising long-term growth prospects. The stock outperformed in 2018, reflecting better-than-expected results and guidance, as well as providing a generally positive update on a critical new product launch.

A number of individual holdings were negative for performance due to company-specific issues. These included Centennial Resource Development, Inc., Rogers Corp., and Eagle Materials, Inc. Centennial Resource Development is an oil and natural gas exploration and production company focused in the Delaware Basin. The company has low cost assets and is under the leadership of Mark Papa who was highly regarded during his tenure as Chief Executive Officer of EOG Resources. With a clean balance sheet and large acreage base, the company anticipates production growth well in excess of its peers in the coming years. The stock underperformed during the year due to broader weakness in the Energy sector, driven by lower oil prices. Rogers Corp. is a specialty materials company with dominant share in niche markets. The stock underperformed in 2018, as transitory issues weighed on its margins after a stretch of very strong organic growth. Additionally, broader concerns around global trade and tariffs, as well as the potential impacts on the technology supply chain, weighed on the stock. In our view, Eagle Materials is one of the lowest cost and best run building materials company levered to U.S. construction and infrastructure spending. Relatively high returns are supported by the company’s close proximity to its customers, permitting regulations for building new plants and long-termlocked-in supply of synthetic gypsum. The company’s stock underperformed in 2018 due to concerns around the U.S. housing market and earnings shortfalls due to inclement weather, higher freight costs and slower than expected infrastructure spending.

From a sector allocation perspective, having no allocation to Utilities was the largest detractor from performance. This defensive, bond-proxy area of the market significantly outperformed the benchmark during the year—especially during the fourth quarter of 2018—when interest rates moved lower amid a flight to safety. Elsewhere, within the Financials sector, having underweights to insurance and

BHFTII-1

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Managed by Neuberger Berman Management LLC

Portfolio Manager Commentary*—(Continued)

mortgage real estate investment trusts companies were headwinds for returns. On the upside, an underweight to the Energy sector was the most beneficial for results.

While the Portfolio’s sector allocations are driven by stock selection, at the end of the reporting period it’s largest overweight allocations versus the benchmark were IT, Health Care, and Industrials. In contrast, the Portfolio’s largest sector underweights relative to the benchmark were Financials, Real Estate, and Utilities.

Judith M. Vale

Robert W. D’Alelio

Brett S. Reiner

Gregory G. Spiegel

Portfolio Managers

Neuberger Berman Management LLC

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 VALUE INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Neuberger Berman Genesis Portfolio
Class A		-6.70		5.21		11.08
Class B		-6.98		4.94		10.80
Class E		-6.89		5.05		10.91
Russell 2000 Value Index		-12.86		3.61		10.40

¹ The Russell 2000 Value Index is an unmanaged measure of performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Pool Corp.		2.6
Aspen Technology, Inc.		2.1
West Pharmaceutical Services, Inc.		2.0
Nexstar Media Group, Inc.- Class A		1.7
Tyler Technologies, Inc.		1.7
Rollins, Inc.		1.7
Fair Isaac Corp.		1.7
Church & Dwight Co., Inc.		1.6
IDEXX Laboratories, Inc.		1.6
RBC Bearings, Inc.		1.6

Top Sectors

	% of Net Assets
Information Technology		20.4
Industrials		17.8
Financials		16.5
Health Care		13.5
Consumer Discretionary		10.6
Materials		6.2
Consumer Staples		6.1
Energy		3.8
Communication Services		3.0
Real Estate		0.6

BHFTII-3

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Neuberger Berman Genesis Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.85	%	$	1,000.00	$	892.70	$	4.06
	Hypothetical*		0.85	%	$	1,000.00	$	1,020.92	$	4.33
Class B (a)	Actual		1.10	%	$	1,000.00	$	891.60	$	5.24
	Hypothetical*		1.10	%	$	1,000.00	$	1,019.66	$	5.60
Class E (a)	Actual		1.00	%	$	1,000.00	$	892.20	$	4.77
	Hypothetical*		1.00	%	$	1,000.00	$	1,020.16	$	5.09

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—98.5% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—0.3%
Astronics Corp. (a)		107,636	$	3,277,516
Air Freight & Logistics—0.5%
Forward Air Corp.		92,591		5,078,616
Airlines—0.5%
Allegiant Travel Co.		50,430		5,054,095
Auto Components—2.0%
Fox Factory Holding Corp. (a)		205,780		12,114,269
LCI Industries		94,950		6,342,660
				18,456,929
Automobiles—0.2%
Thor Industries, Inc.		39,340		2,045,680
Banks—11.5%
Bank of Hawaii Corp.		192,420		12,953,714
Bank OZK		248,476		5,672,707
BOK Financial Corp.		112,167		8,225,206
Columbia Banking System, Inc.		221,410		8,034,969
Community Bank System, Inc.		147,532		8,601,116
Cullen/Frost Bankers, Inc.		134,368		11,816,322
CVB Financial Corp.		566,665		11,463,633
First Financial Bankshares, Inc.		229,645		13,248,220
First Hawaiian, Inc.		373,300		8,402,983
Glacier Bancorp, Inc.		164,620		6,522,244
Lakeland Financial Corp.		81,435		3,270,430
LegacyTexas Financial Group, Inc.		186,625		5,988,796
PacWest Bancorp		73,123		2,433,534
				106,633,874
Beverages—0.7%
MGP Ingredients, Inc.		108,190		6,172,240
Biotechnology—0.9%
Abcam plc		218,430		3,023,735
Emergent BioSolutions, Inc. (a)		95,375		5,653,830
				8,677,565
Building Products—1.8%
A.O. Smith Corp.		130,215		5,560,181
AAON, Inc.		269,637		9,453,473
Patrick Industries, Inc. (a)		43,472		1,287,206
				16,300,860
Capital Markets—3.3%
Artisan Partners Asset Management, Inc. - Class A		126,815		2,803,880
BrightSphere Investment Group plc		357,560		3,818,741
FactSet Research Systems, Inc.		30,365		6,076,947
Houlihan Lokey, Inc.		115,820		4,262,176
MarketAxess Holdings, Inc.		64,730		13,678,096
				30,639,840
Chemicals—3.1%
Chase Corp.		46,285		4,630,814
Ingevity Corp. (a)		49,725		4,161,485
NewMarket Corp.		13,112		5,403,324
Quaker Chemical Corp.		51,150		9,089,867
Sensient Technologies Corp.		100,645		5,621,023
				28,906,513
Commercial Services & Supplies—3.7%
Healthcare Services Group, Inc.		124,054		4,984,490
MSA Safety, Inc.		91,230		8,600,252
Rollins, Inc.		428,765		15,478,416
UniFirst Corp.		36,080		5,161,966
				34,225,124
Communications Equipment—1.0%
NetScout Systems, Inc. (a)		391,160		9,243,111
Construction & Engineering—0.8%
Valmont Industries, Inc.		65,145		7,227,838
Construction Materials—1.0%
Eagle Materials, Inc.		145,580		8,884,747
Containers & Packaging—1.3%
AptarGroup, Inc.		123,754		11,641,539
Distributors—2.6%
Pool Corp.		159,595		23,723,797
Diversified Consumer Services—1.2%
Bright Horizons Family Solutions, Inc. (a)		95,975		10,696,414
Electrical Equipment—0.6%
AZZ, Inc.		137,080		5,532,549
Electronic Equipment, Instruments & Components—6.1%
Cognex Corp.		217,080		8,394,484
Littelfuse, Inc.		83,700		14,352,876
Nlight, Inc. (a)		94,925		1,687,767
Novanta, Inc. (a)		140,140		8,828,820
Rogers Corp. (a)		125,690		12,450,851
Zebra Technologies Corp. - Class A (a)		66,602		10,605,036
				56,319,834
Energy Equipment & Services—1.6%
Apergy Corp. (a)		115,700		3,133,156
Cactus, Inc. - Class A (a)		135,000		3,700,350
Computer Modelling Group, Ltd.		370,905		1,645,261
Pason Systems, Inc.		441,845		5,921,739
				14,400,506
Food Products—2.7%
Calavo Growers, Inc.		85,150		6,212,544
J&J Snack Foods Corp.		42,364		6,125,411

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Food Products—(Continued)
Lancaster Colony Corp.		72,000	$	12,733,920
				25,071,875
Health Care Equipment & Supplies—7.3%
Atrion Corp.		9,885		7,325,576
Cantel Medical Corp.		121,777		9,066,298
Haemonetics Corp. (a)		104,086		10,413,804
Heska Corp. (a)		41,605		3,582,190
IDEXX Laboratories, Inc. (a)		80,690		15,009,954
Neogen Corp. (a)		59,965		3,418,005
West Pharmaceutical Services, Inc.		187,681		18,398,368
				67,214,195
Health Care Providers & Services—3.0%
Chemed Corp.		48,120		13,631,433
Henry Schein, Inc. (a)		96,275		7,559,513
U.S. Physical Therapy, Inc.		60,865		6,229,533
				27,420,479
Hotels, Restaurants & Leisure—1.2%
Cheesecake Factory, Inc. (The)		58,300		2,536,633
Texas Roadhouse, Inc.		141,820		8,466,654
				11,003,287
Household Durables—0.2%
Installed Building Products, Inc. (a)		57,065		1,922,520
Household Products—2.7%
Church & Dwight Co., Inc.		230,130		15,133,349
WD-40 Co.		52,090		9,546,013
				24,679,362
Industrial Conglomerates—0.4%
Raven Industries, Inc.		107,659		3,896,179
Insurance—1.6%
AMERISAFE, Inc.		76,715		4,348,973
RLI Corp.		152,630		10,529,944
				14,878,917
IT Services—1.4%
Jack Henry & Associates, Inc.		100,165		12,672,876
Life Sciences Tools & Services—2.4%
Bio-Techne Corp.		101,725		14,721,642
ICON plc (a)		55,182		7,130,066
				21,851,708
Machinery—5.8%
Graco, Inc.		145,265		6,079,340
Lindsay Corp.		51,265		4,934,256
Middleby Corp. (The) (a)		79,180		8,134,162
Nordson Corp.		71,162		8,493,185
RBC Bearings, Inc. (a)		112,470		14,744,817
Machinery—(Continued)
Toro Co. (The)		195,300		10,913,364
				53,299,124
Media—3.0%
Cable One, Inc.		7,710		6,322,971
Gray Television, Inc. (a)		368,280		5,428,447
Nexstar Media Group, Inc. - Class A		199,530		15,691,039
				27,442,457
Multiline Retail—0.3%
Ollie’s Bargain Outlet Holdings, Inc. (a)		49,130		3,267,636
Oil, Gas & Consumable Fuels—2.3%
Centennial Resource Development, Inc. - Class A (a)		852,975		9,399,784
Matador Resources Co. (a)		356,920		5,542,968
WPX Energy, Inc. (a)		528,310		5,996,319
				20,939,071
Paper & Forest Products—0.8%
Stella-Jones, Inc.		260,870		7,568,899
Professional Services—1.5%
Exponent, Inc.		278,627		14,129,175
Real Estate Management & Development—0.6%
FirstService Corp.		81,315		5,568,451
Semiconductors & Semiconductor Equipment—3.0%
Cabot Microelectronics Corp.		83,105		7,924,062
MKS Instruments, Inc.		99,850		6,451,308
Power Integrations, Inc.		215,910		13,166,192
				27,541,562
Software—8.9%
Altair Engineering, Inc. - Class A (a)		138,420		3,817,623
Aspen Technology, Inc. (a)		235,340		19,340,241
Fair Isaac Corp. (a)		81,760		15,289,120
Manhattan Associates, Inc. (a)		337,016		14,279,368
Monotype Imaging Holdings, Inc.		56,523		877,237
Qualys, Inc. (a)		177,505		13,266,724
Tyler Technologies, Inc. (a)		83,305		15,479,735
				82,350,048
Specialty Retail—2.9%
Asbury Automotive Group, Inc. (a)		64,380		4,291,571
Floor & Decor Holdings, Inc. - Class A (a)		126,640		3,279,976
Lithia Motors, Inc. - Class A		81,110		6,191,126
Monro, Inc.		102,595		7,053,406
Tractor Supply Co.		73,140		6,102,802
				26,918,881
Trading Companies & Distributors—1.8%
Applied Industrial Technologies, Inc.		40,336		2,175,724
Richelieu Hardware, Ltd.		155,530		2,584,951

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares/ Principal Amount*		Value
Trading Companies & Distributors—(Continued)
SiteOne Landscape Supply, Inc. (a)		68,585	$	3,790,693
Watsco, Inc.		58,630		8,157,778
				16,709,146
Total Common Stocks (Cost $675,265,048)				909,485,035
Short-Term Investment—1.5%
Repurchase Agreement—1.5%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $14,218,159; collateralized by U.S. Treasury Note at 2.875%, maturing 10/31/23, with a market value of $14,506,373.		14,217,211		14,217,211
Total Short-Term Investments (Cost $14,217,211)				14,217,211
Total Investments—100.0% (Cost $689,482,259)				923,702,246
Other assets and liabilities (net)—0.0%				(93,454	)
Net Assets—100.0%			$	923,608,792

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
Aerospace & Defense	$	3,277,516	$	—	$	—	$	3,277,516
Air Freight & Logistics		5,078,616		—		—		5,078,616
Airlines		5,054,095		—		—		5,054,095
Auto Components		18,456,929		—		—		18,456,929
Automobiles		2,045,680		—		—		2,045,680
Banks		106,633,874		—		—		106,633,874
Beverages		6,172,240		—		—		6,172,240

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2		Level 3		Total
Biotechnology	$	8,677,565	$	—	$	—	$	8,677,565
Building Products		16,300,860		—		—		16,300,860
Capital Markets		30,639,840		—		—		30,639,840
Chemicals		28,906,513		—		—		28,906,513
Commercial Services & Supplies		34,225,124		—		—		34,225,124
Communications Equipment		9,243,111		—		—		9,243,111
Construction & Engineering		7,227,838		—		—		7,227,838
Construction Materials		8,884,747		—		—		8,884,747
Containers & Packaging		11,641,539		—		—		11,641,539
Distributors		23,723,797		—		—		23,723,797
Diversified Consumer Services		10,696,414		—		—		10,696,414
Electrical Equipment		5,532,549		—		—		5,532,549
Electronic Equipment, Instruments & Components		56,319,834		—		—		56,319,834
Energy Equipment & Services		14,400,506		—		—		14,400,506
Food Products		25,071,875		—		—		25,071,875
Health Care Equipment & Supplies		67,214,195		—		—		67,214,195
Health Care Providers & Services		27,420,479		—		—		27,420,479
Hotels, Restaurants & Leisure		11,003,287		—		—		11,003,287
Household Durables		1,922,520		—		—		1,922,520
Household Products		24,679,362		—		—		24,679,362
Industrial Conglomerates		3,896,179		—		—		3,896,179
Insurance		14,878,917		—		—		14,878,917
IT Services		12,672,876		—		—		12,672,876
Life Sciences Tools & Services		21,851,708		—		—		21,851,708
Machinery		53,299,124		—		—		53,299,124
Media		27,442,457		—		—		27,442,457
Multiline Retail		3,267,636		—		—		3,267,636
Oil, Gas & Consumable Fuels		20,939,071		—		—		20,939,071
Paper & Forest Products		—		7,568,899		—		7,568,899
Professional Services		14,129,175		—		—		14,129,175
Real Estate Management & Development		5,568,451		—		—		5,568,451
Semiconductors & Semiconductor Equipment		27,541,562		—		—		27,541,562
Software		82,350,048		—		—		82,350,048
Specialty Retail		26,918,881		—		—		26,918,881
Trading Companies & Distributors		14,124,195		2,584,951		—		16,709,146
Total Common Stocks		899,331,185		10,153,850		—		909,485,035
Total Short-Term Investment*		—		14,217,211		—		14,217,211
Total Investments	$	899,331,185	$	24,371,061	$	—	$	923,702,246

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a)	$	923,702,246
Cash		49,663
Receivable for:
Investments sold		169,383
Fund shares sold		893,802
Dividends and interest		325,582
Prepaid expenses		2,894
Total Assets		925,143,570
Liabilities
Payables for:
Investments purchased		292,275
Fund shares redeemed		205,630
Accrued Expenses:
Management fees		656,116
Distribution and service fees		69,141
Deferred trustees’ fees		138,370
Other expenses		173,246
Total Liabilities		1,534,778
Net Assets	$	923,608,792
Net Assets Consist of:
Paid in surplus	$	546,746,009
Distributable earnings (Accumulated losses)		376,862,783
Net Assets	$	923,608,792
Net Assets
Class A	$	577,566,359
Class B		271,718,657
Class E		74,323,776
Capital Shares Outstanding*
Class A		31,119,416
Class B		14,942,232
Class E		4,060,666
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	18.56
Class B		18.18
Class E		18.30

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $689,482,259.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	12,178,649
Interest		84,699
Total investment income		12,263,348
Expenses
Management fees		9,141,695
Administration fees		42,162
Custodian and accounting fees		98,197
Distribution and service fees—Class B		810,236
Distribution and service fees—Class E		134,406
Audit and tax services		43,558
Legal		45,316
Trustees’ fees and expenses		33,734
Shareholder reporting		145,655
Insurance		7,274
Miscellaneous		21,037
Total expenses		10,523,270
Less management fee waiver		(125,000	)
Less broker commission recapture		(43,423	)
Net expenses		10,354,847
Net Investment Income		1,908,501
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		141,694,885
Foreign currency transactions		(4,771	)
Net realized gain		141,690,114
Net change in unrealized depreciation on investments		(200,862,363	)
Net realized and unrealized loss		(59,172,249	)
Net Decrease in Net Assets From Operations	$	(57,263,748	)

(a) Net of foreign withholding taxes of $82,110.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	1,908,501		$	3,233,517
Net realized gain		141,690,114			134,565,500
Net change in unrealized appreciation (depreciation)		(200,862,363	)		35,165,604
Increase (decrease) in net assets from operations		(57,263,748	)		172,964,621
From Distributions to Shareholders (a)
Class A		(86,103,283	)		(63,931,407	)
Class B		(40,710,795	)		(27,905,972	)
Class E		(11,303,616	)		(7,776,023	)
Total distributions		(138,117,694	)		(99,613,402	)
Decrease in net assets from capital share transactions		(84,603,711	)		(60,762,640	)
Total increase (decrease) in net assets		(279,985,153	)		12,588,579
Net Assets
Beginning of period		1,203,593,945			1,191,005,366
End of period	$	923,608,792		$	1,203,593,945	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		618,063		$	12,532,116			545,697		$	11,693,079
Reinvestments		4,053,827			86,103,283			3,088,474			63,931,407
Redemptions		(7,552,333	)		(170,531,944	)		(5,394,723	)		(117,602,380	)
Net decrease		(2,880,443	)	$	(71,896,545	)		(1,760,552	)	$	(41,977,894	)
Class B
Sales		515,822		$	10,612,459			507,997		$	10,710,432
Reinvestments		1,953,493			40,710,795			1,370,628			27,905,972
Redemptions		(2,807,089	)		(60,981,769	)		(2,440,824	)		(51,897,130	)
Net decrease		(337,774	)	$	(9,658,515	)		(562,199	)	$	(13,280,726	)
Class E
Sales		36,138		$	713,830			41,800		$	888,318
Reinvestments		539,295			11,303,616			379,874			7,776,023
Redemptions		(692,542	)		(15,066,097	)		(661,383	)		(14,168,361	)
Net decrease		(117,109	)	$	(3,048,651	)		(239,709	)	$	(5,504,020	)
Decrease derived from capital shares transactions				$	(84,603,711	)				$	(60,762,640	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(3,068,174	)	$	(60,863,233	)
Class B		(583,870	)		(27,322,102	)
Class E		(247,513	)		(7,528,510	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $2,967,503 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	22.65		$	21.38		$	18.10		$	18.07		$	18.14
Income (Loss) from Investment Operations
Net investment income (a)		0.06			0.08			0.08	(b)		0.08			0.08
Net realized and unrealized gain (loss)		(1.21	)		3.11			3.29			0.03			(0.08	)
Total income (loss) from investment operations		(1.15	)		3.19			3.37			0.11			0.00
Less Distributions
Distributions from net investment income		(0.08	)		(0.09	)		(0.09	)		(0.08	)		(0.07	)
Distributions from net realized capital gains		(2.86	)		(1.83	)		0.00			0.00	��		0.00
Total distributions		(2.94	)		(1.92	)		(0.09	)		(0.08	)		(0.07	)
Net Asset Value, End of Period	$	18.56		$	22.65		$	21.38		$	18.10		$	18.07
Total Return (%) (c)		(6.70	)		15.75			18.68			0.58			0.01
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.86			0.85			0.85			0.84			0.83
Net ratio of expenses to average net assets (%) (d)		0.84			0.84			0.84			0.83			0.83
Ratio of net investment income to average net assets (%)		0.25			0.36			0.43	(b)		0.42			0.43
Portfolio turnover rate (%)		12			17			19			16			9
Net assets, end of period (in millions)	$	577.6		$	770.2		$	764.5		$	814.6		$	985.8
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	22.25		$	21.03		$	17.80		$	17.76		$	17.85
Income (Loss) from Investment Operations
Net investment income (a)		0.00	(e)		0.02			0.04	(b)		0.03			0.03
Net realized and unrealized gain (loss)		(1.19	)		3.07			3.23			0.04			(0.08	)
Total income (loss) from investment operations		(1.19	)		3.09			3.27			0.07			(0.05	)
Less Distributions
Distributions from net investment income		(0.02	)		(0.04	)		(0.04	)		(0.03	)		(0.04	)
Distributions from net realized capital gains		(2.86	)		(1.83	)		0.00			0.00			0.00
Total distributions		(2.88	)		(1.87	)		(0.04	)		(0.03	)		(0.04	)
Net Asset Value, End of Period	$	18.18		$	22.25		$	21.03		$	17.80		$	17.76
Total Return (%) (c)		(6.98	)		15.49			18.39			0.38			(0.30	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.11			1.10			1.10			1.09			1.08
Net ratio of expenses to average net assets (%) (d)		1.09			1.09			1.09			1.08			1.08
Ratio of net investment income to average net assets (%)		0.01			0.11			0.19	(b)		0.17			0.18
Portfolio turnover rate (%)		12			17			19			16			9
Net assets, end of period (in millions)	$	271.7		$	339.9		$	333.1		$	321.7		$	366.8

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	22.38		$	21.14		$	17.89		$	17.86		$	17.94
Income (Loss) from Investment Operations
Net investment income (a)		0.02			0.04			0.05	(b)		0.05			0.05
Net realized and unrealized gain (loss)		(1.19	)		3.09			3.26			0.03			(0.09	)
Total income (loss) from investment operations		(1.17	)		3.13			3.31			0.08			(0.04	)
Less Distributions
Distributions from net investment income		(0.05	)		(0.06	)		(0.06	)		(0.05	)		(0.04	)
Distributions from net realized capital gains		(2.86	)		(1.83	)		0.00			0.00			0.00
Total distributions		(2.91	)		(1.89	)		(0.06	)		(0.05	)		(0.04	)
Net Asset Value, End of Period	$	18.30		$	22.38		$	21.14		$	17.89		$	17.86
Total Return (%) (c)		(6.89	)		15.61			18.54			0.43			(0.19	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.01			1.00			1.00			0.99			0.98
Net ratio of expenses to average net assets (%) (d)		0.99			0.99			0.99			0.98			0.98
Ratio of net investment income to average net assets (%)		0.11			0.21			0.29	(b)		0.27			0.28
Portfolio turnover rate (%)		12			17			19			16			9
Net assets, end of period (in millions)	$	74.3		$	93.5		$	93.4		$	89.3		$	103.6

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.02% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(e)	Net investment income was less than $0.01.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Neuberger Berman Genesis Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-13

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-14

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had investments in repurchase agreements with a gross value of $14,217,211, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	132,105,182	$	0	$	353,282,032

BHFTII-15

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average daily net assets
$9,141,695		0.850	%	Of the first $500 million
		0.800	%	Of the next $500 million
		0.750	%	On amounts in excess of $1 billion

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Neuberger Berman Management LLC (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average daily net assets
0.025%	First $	500 million

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

BHFTII-16

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	690,314,919
Gross unrealized appreciation		291,816,222
Gross unrealized depreciation		(58,428,895	)
Net unrealized appreciation (depreciation)	$	233,387,327

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$5,033,142	$	3,899,557	$	133,084,552	$	95,713,845	$	138,117,694	$	99,613,402

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$2,076,097	$	141,537,729	$	233,387,327	$	—	$	377,001,153

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-17

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Neuberger Berman Genesis Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Neuberger Berman Genesis Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Neuberger Berman Genesis Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-18

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-19

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-20

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-21

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-22

Brighthouse Funds Trust II

Neuberger Berman Genesis Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Neuberger Berman Genesis Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Neuberger Berman Management LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one, three- and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Value Index, for theone-, three-, and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median and theSub-advised Expense Universe median, and above the Expense Universe median. The Board also noted that the Portfolio’s total expenses (exclusive of12b-1 fees) were equal to the Expense Group median and Expense Universe median, and below theSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-23

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the T. Rowe Price Large Cap Growth Portfolio returned-0.94%,-1.15%, and-1.05%, respectively. The Portfolio’s benchmark, the Russell 1000 Growth Index¹, returned-1.51%.

MARKET ENVIRONMENT / CONDITIONS

U.S. stocks declined in 2018, which marked the worst year for the U.S. equity market since 2008. Stocks rose for much of the year, though the advance was somewhat sluggish. Market volatility was elevated throughout 2018, thanks partly to rising interest rates. The Federal Reserve (the “Fed”) continued its normalization of monetary policy, with four short-term interest rate hikes in 2018, and the10-year Treasury note yield reached a seven-year high of about 3.25% in early October. Heightened global trade tensions, especially between the U.S. and China, periodically weighed on U.S. and global equity markets throughout 2018.

While most major U.S. stock indexes reachedall-time highs around the end of the third quarter, equities plunged in the final months of the year, with several indexes in or close to bear market territory—down at least 20% from recent highs—by the end of the year. Stocks fell sharply due to factors such as expectations for additional interest rate increases from the Fed in 2019; expectations for slowing corporate earnings growth in 2019, as the tailwinds from the late-2017 tax reform that boosted corporate earnings in 2018 subside; signs of slowing economic growth in different parts of the world; and increased U.S.-China tensions. Turmoil in the Trump administration also weighed on investor sentiment.

As measured by various Russell Indices, growth stocks held up better than value stocks across all market capitalizations.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio delivered modestly negative returns for the12-months ended December 31, 2018, but outpaced the benchmark Russell 1000 Growth Index. Overall, sector allocation was responsible for relative outperformance, as stock selection detracted slightly. Information Technology (“IT”) was the leading relative outperformer, followed by Industrials & Business Services and Materials. Consumer Discretionary and Financials were the largest relative detractors.

In IT, stock choices boosted relative results, led by a position in Red Hat. Shares gained as growing demand for hybrid cloud solutions and a record number of large deals fueled topline growth. Shares traded higher after the announcement that the company would be acquired by IBM in an effort to gain a foothold in the cloud era of enterprise technology. Below-benchmark exposure to Apple bolstered relative performance, as shares sold off due to softer-than-expected demand for the latest iPhone launch, particularly in China. Shares of Workday appreciated due to better-than-expected organic subscription revenue and billings growth, driven by momentum withmid-market customers in its financials business, as well as strength in its international Human Capital Management business.

Underweight and security section in Industrials & Business Services had a positive relative impact, due in part to above-benchmark exposure to Boeing, which benefited from continued expansion of operating margins, driven by favorable delivery volume and mix within commercial aircraft, as well as better-than-expected revenue growth from defense and services. Below-benchmark exposure to the Materials sector also aided relative performance.

In contrast, security selection within Consumer Discretionary weighed on relative returns. Investor sentiment for Alibaba Group Holding waned due to concerns over trade and regulatory uncertainty in China and the impending departure of the chairman and founder, Jack Ma. Shares came under further pressure as investments in local retail initiatives weighed on the company’s near-term outlook.

Financials also detracted on a relative basis, largely on stock choices. Shares of Morgan Stanley came under pressure due to investor concerns over decelerating transaction revenue and compression of advisory fees impacting results of the company’s wealth management division. Shares were weighed down further atyear-end as growing fears of recession in 2019 caused bank stocks to sell off.

At the end of the reporting period, the Portfolio’s most substantially overweight positions relative to the Russell 1000 Growth Index were Consumer Discretionary and Communication Services sectors. In contrast, the Portfolio’s most substantially underweight positions were Consumer Staples, IT, and Industrials & Business Services.

Joseph B. Fath

Portfolio Manager

T. Rowe Price Associates, Inc.

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
T. Rowe Price Large Cap Growth Portfolio
Class A		-0.94		10.27		16.18
Class B		-1.15		10.01		15.89
Class E		-1.05		10.12		16.01
Russell 1000 Growth Index		-1.51		10.41		15.29

¹ The Russell 1000 Growth Index is an unmanaged measure of performance of the largest capitalized U.S. companies, within the Russell 1000 companies, that have higher price-to-book ratios and forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Amazon.com, Inc.		8.6
Microsoft Corp.		5.3
Facebook, Inc.- Class A		3.8
Boeing Co. (The)		3.5
Visa, Inc.- Class A		3.4
Alphabet, Inc.- Class A		3.1
Alphabet, Inc.- Class C		3.1
UnitedHealth Group, Inc.		2.8
MasterCard, Inc.- Class A		2.8
Tencent Holdings, Ltd.		2.2

Top Sectors

	% of Net Assets
Information Technology		27.9
Consumer Discretionary		21.6
Communication Services		16.7
Health Care		15.5
Industrials		8.7
Financials		5.4
Utilities		1.5
Consumer Staples		1.0
Materials		0.7
Real Estate		0.5

BHFTII-2

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

T. Rowe Price Large Cap Growth Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.54	%	$	1,000.00	$	902.00	$	2.59
	Hypothetical*		0.54	%	$	1,000.00	$	1,022.48	$	2.75
Class B (a)	Actual		0.79	%	$	1,000.00	$	901.20	$	3.79
	Hypothetical*		0.79	%	$	1,000.00	$	1,021.22	$	4.02
Class E (a)	Actual		0.69	%	$	1,000.00	$	901.80	$	3.31
	Hypothetical*		0.69	%	$	1,000.00	$	1,021.73	$	3.52

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—97.4% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—4.4%
Boeing Co. (The)		229,744	$	74,092,440
Northrop Grumman Corp.		72,900		17,853,210
				91,945,650
Auto Components—0.9%
Aptiv plc		298,270		18,364,484
Automobiles—2.0%
Ferrari NV		112,963		11,233,041
Tesla, Inc. (a) (b)		93,636		31,162,061
				42,395,102
Banks—0.5%
JPMorgan Chase & Co.		104,119		10,164,097
Biotechnology—2.2%
Alexion Pharmaceuticals, Inc. (b)		156,584		15,245,018
Vertex Pharmaceuticals, Inc. (b)		191,641		31,756,830
				47,001,848
Capital Markets—3.9%
Charles Schwab Corp. (The)		608,354		25,264,942
Intercontinental Exchange, Inc.		199,534		15,030,896
Morgan Stanley		310,900		12,327,185
S&P Global, Inc.		18,400		3,126,896
TD Ameritrade Holding Corp.		546,523		26,757,766
				82,507,685
Chemicals—0.7%
DowDuPont, Inc.		276,700		14,797,916
Electric Utilities—0.5%
NextEra Energy, Inc.		54,700		9,507,954
Entertainment—4.1%
Activision Blizzard, Inc.		192,800		8,978,696
Electronic Arts, Inc. (b)		223,694		17,651,693
Netflix, Inc. (b)		110,909		29,685,903
Walt Disney Co. (The) (a)		271,772		29,799,800
				86,116,092
Equity Real Estate Investment Trusts—0.5%
Crown Castle International Corp.		99,186		10,774,575
Health Care Equipment & Supplies—5.3%
Becton Dickinson & Co.		178,986		40,329,126
Intuitive Surgical, Inc. (b)		68,238		32,680,543
Stryker Corp.		246,606		38,655,490
				111,665,159
Health Care Providers & Services—7.7%
Anthem, Inc.		114,817		30,154,389
Centene Corp. (b)		144,576		16,669,613
Cigna Corp.		149,384		28,371,009
Health Care Providers & Services—(Continued)
HCA Healthcare, Inc.		43,451		5,407,477
Humana, Inc.		27,600		7,906,848
UnitedHealth Group, Inc.		235,986		58,788,832
WellCare Health Plans, Inc. (a) (b)		57,367		13,543,775
				160,841,943
Hotels, Restaurants & Leisure—2.8%
Las Vegas Sands Corp.		282,400		14,698,920
McDonald’s Corp.		94,300		16,744,851
MGM Resorts International		373,100		9,051,406
Wynn Resorts, Ltd.		179,582		17,762,456
				58,257,633
Household Durables—0.4%
NVR, Inc. (b)		3,450		8,407,616
Industrial Conglomerates—1.4%
Honeywell International, Inc.		71,599		9,459,660
Roper Technologies, Inc. (a)		77,651		20,695,544
				30,155,204
Insurance—0.8%
Chubb, Ltd.		128,448		16,592,913
Interactive Media & Services—12.7%
Alphabet, Inc. - Class A (b)		62,870		65,696,635
Alphabet, Inc. - Class C (b)		62,038		64,247,173
Facebook, Inc. - Class A (b)		606,553		79,513,033
IAC/InterActiveCorp (b)		48,700		8,914,048
Tencent Holdings, Ltd.		1,186,485		47,031,110
				265,401,999
Internet & Direct Marketing Retail—12.3%
Alibaba Group Holding, Ltd. (ADR) (a) (b)		271,814		37,257,545
Amazon.com, Inc. (b)		119,911		180,102,725
Booking Holdings, Inc. (b)		23,995		41,329,468
				258,689,738
IT Services—10.1%
Fidelity National Information Services, Inc.		165,300		16,951,515
Fiserv, Inc. (b)		219,206		16,109,449
MasterCard, Inc. - Class A		307,858		58,077,412
PayPal Holdings, Inc. (b)		256,296		21,551,930
Visa, Inc. - Class A (a)		544,699		71,867,586
Worldpay, Inc. - Class A (b)		358,290		27,384,105
				211,941,997
Machinery—1.3%
Fortive Corp. (a)		293,180		19,836,559
Wabtec Corp.		110,657		7,773,654
				27,610,213
Multi-Utilities—0.9%
Sempra Energy (a)		168,991		18,283,136

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Multiline Retail—1.8%
Dollar General Corp. (a)		72,043	$	7,786,408
Dollar Tree, Inc. (a) (b)		228,451		20,633,694
Dollarama, Inc.		437,631		10,408,642
				38,828,744
Pharmaceuticals—0.3%
Eli Lilly & Co.		51,300		5,936,436
Professional Services—1.5%
Equifax, Inc.		157,098		14,630,537
TransUnion (a)		307,552		17,468,953
				32,099,490
Real Estate Management & Development—0.0%
WeWork Cos., Inc. - Class A (b) (c) (d) (e)		2,563		132,789
Semiconductors & Semiconductor Equipment—1.6%
ASML Holding NV		94,800		14,752,776
NVIDIA Corp.		135,100		18,035,850
				32,788,626
Software—13.7%
Intuit, Inc.		143,335		28,215,495
Microsoft Corp.		1,089,637		110,674,430
Red Hat, Inc. (b)		164,656		28,920,180
Salesforce.com, Inc. (b)		206,266		28,252,254
ServiceNow, Inc. (a) (b)		71,807		12,785,236
Splunk, Inc. (a) (b)		119,900		12,571,515
Symantec Corp.		1,398,495		26,424,563
UBER Technologies, Inc. - Class A (b) (c) (d) (e)		4,669		227,718
VMware, Inc. - Class A		133,856		18,355,673
Workday, Inc. - Class A (a) (b)		134,396		21,460,353
				287,887,417
Technology Hardware, Storage & Peripherals—0.8%
Apple, Inc.		101,898		16,073,391
Textiles, Apparel & Luxury Goods—1.1%
NIKE, Inc. - Class B		320,133		23,734,661
Tobacco—1.0%
Philip Morris International, Inc.		307,232		20,510,808
Water Utilities—0.2%
American Water Works Co., Inc.		44,048		3,998,237
Total Common Stocks (Cost $1,668,974,874)				2,043,413,553
Convertible Preferred Stocks—1.9%
Internet & Direct Marketing Retail—1.2%
Airbnb, Inc. - Series D (b) (c) (d) (e)		97,047		11,718,425
Airbnb, Inc. - Series E (b) (c) (d) (e)		9,760		1,178,520
Security Description	Shares/ Principal Amount*		Value
Internet & Direct Marketing Retail—(Continued)
ANT International Co., Ltd. - Series C (b) (c) (d) (e)		1,458,697		8,183,290
Xiaoju Kuaizhi, Inc. -Series A-17 (b) (c) (d) (e)		91,053		4,270,386
				25,350,621
Real Estate Management & Development—0.2%
WeWork Cos., Inc. - Series E (b) (c) (d) (e)		64,744		3,354,386
Software—0.5%
Magic Leap, Inc. - Series C (b) (c) (d) (e)		124,428		3,359,556
Magic Leap, Inc. - Series D (b) (c) (d) (e)		90,348		2,439,396
UBER Technologies, Inc. (b) (c) (d) (e)		1,703		83,059
UBER Technologies, Inc. - Series A (b) (c) (d) (e)		665		32,434
UBER Technologies, Inc. - Series B (b) (c) (d) (e)		1,785		87,058
UBER Technologies, Inc. -Series C-1 (b) (c) (d) (e)		472		23,020
UBER Technologies, Inc. -Series C-2 (b) (c) (d) (e)		382		18,631
UBER Technologies, Inc. -Series C-3 (b) (c) (d) (e)		5		244
UBER Technologies, Inc. - Series D (b) (c) (d) (e)		424		20,679
UBER Technologies, Inc. - Series E (b) (c) (d) (e)		204		9,950
UBER Technologies, Inc. - Series G (b) (c) (d) (e)		98,227		4,790,750
UBER Technologies, Inc. -Series G-1 (b) (c) (d) (e)		1,024		49,943
				10,914,720
Total Convertible Preferred Stocks (Cost $28,001,590)				39,619,727
Corporate Bonds & Notes—0.2%
Lodging—0.2%
Caesars Entertainment Corp. 5.000%, 10/01/24 (Cost $5,801,535)		3,089,799		3,835,262
Short-Term Investment—0.4%
Mutual Fund—0.4%
T. Rowe Price Government Reserve Fund (f)		7,899,784		7,899,784
Total Short-Term Investments (Cost $7,899,784)				7,899,784
Securities Lending Reinvestments (g)—10.1%
Certificates of Deposit—6.5%
Banco Del Estado De Chile New York
2.695%, 1M LIBOR + 0.240%, 01/17/19 (h)		1,000,000		999,991
2.720%, 1M LIBOR + 0.250%, 03/20/19 (h)		3,000,000		2,999,742
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (h)		6,000,000		5,999,850
Bank of Nova Scotia 3.072%, 3M LIBOR + 0.280%, 03/20/19 (h)		4,000,000		4,001,596
Barclays Bank plc
2.500%, 02/01/19		2,000,000		1,999,742
2.547%, 1M LIBOR + 0.200%, 02/04/19 (h)		1,500,000		1,499,858

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (g)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (h)		2,500,000	$	2,499,680
China Construction Bank Corp.
2.550%, 01/07/19		2,000,000		2,000,000
Citibank N.A. 2.490%, 02/04/19		3,000,000		2,999,583
Commonwealth Bank of Australia
2.617%, 3M LIBOR + 0.140%, 04/23/19 (h)		2,000,000		2,000,006
2.642%, 1M LIBOR + 0.210%, 09/13/19 (h)		2,000,000		2,000,000
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (h)		2,000,000		2,000,628
Credit Agricole S.A. 2.500%, 02/12/19		5,000,000		4,999,150
Credit Industriel et Commercial Zero Coupon, 01/25/19		6,342,941		6,414,077
Credit Suisse AG
2.620%, 04/01/19		3,000,000		2,998,446
2.890%, SOFR + 0.430%, 05/02/19 (h)		1,000,000		999,988
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		3,000,000		2,999,778
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		3,969,950		3,995,920
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (h)		2,000,000		2,000,012
Natixis New York
2.705%, 3M LIBOR + 0.090%, 05/10/19 (h)		2,500,000		2,498,425
2.731%, 3M LIBOR + 0.190%, 02/01/19 (h)		3,000,000		2,999,328
Royal Bank of Canada New York
2.650%, 1M LIBOR + 0.250%, 01/11/19 (h)		6,000,000		6,000,048
2.665%, 1M LIBOR + 0.210%, 09/17/19 (h)		7,000,000		6,992,839
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (h)		6,000,000		5,999,508
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (h)		2,000,000		1,999,112
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (h)		6,000,000		5,999,826
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (h)		7,000,000		6,999,860
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (h)		4,000,000		3,998,532
Sumitomo Mitsui Banking Corp., New York
2.549%, 1M LIBOR + 0.200%, 04/03/19 (h)		2,000,059		1,999,408
2.559%, 1M LIBOR + 0.180%, 03/05/19 (h)		3,000,000		2,999,289
2.665%, 1M LIBOR + 0.210%, 05/17/19 (h)		4,000,000		3,998,320
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 02/08/19		3,965,612		3,988,640
Svenska Handelsbanken AB
2.620%, 3M LIBOR + 0.100%, 04/30/19 (h)		2,000,000		1,999,910
2.822%, 1M LIBOR + 0.300%, 10/31/19 (h)		2,000,000		1,999,532
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (h)		5,000,000		4,995,240
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (h)		1,000,000		1,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (h)		9,000,000		9,007,807
Certificates of Deposit—(Continued)
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (h)		5,500,000		5,499,965
				136,383,636
Commercial Paper—1.6%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (h)		4,000,000		3,998,892
Banco Santander S.A.
2.740%, 02/07/19		4,964,989		4,985,440
ING Funding LLC
2.707%, 1M LIBOR + 0.320%, 02/08/19 (h)		8,000,000		8,000,744
2.725%, 3M LIBOR + 0.110%, 05/10/19 (h)		2,000,000		1,999,764
Matchpoint Finance plc 2.890%, 05/08/19		4,927,349		4,946,265
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (h)		1,000,000		999,984
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (h)		5,000,000		5,001,225
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (h)		3,000,000		2,999,880
				32,932,194
Repurchase Agreements — 2.0%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $10,076,667; collateralized by various Common Stock with an aggregate market value of $11,001,834.		10,000,000		10,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $3,509,494; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $3,809,115.		3,500,000		3,500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,511,270; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $1,530,000.		1,500,000		1,500,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $7,110,320; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $7,251,237.		7,109,056		7,109,056
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $7,556,350; collateralized by various Common Stock with an aggregate market value of $8,250,000.		7,500,000		7,500,000

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (g)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements —(Continued)
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $12,001,707; collateralized by various Common Stock with an aggregate market value of $13,358,547.		12,000,000	$	12,000,000
				41,609,056
Total Securities Lending Reinvestments (Cost $210,945,413)				210,924,886
Total Investments—110.0% (Cost $1,921,623,196)				2,305,693,212
Other assets and liabilities (net)—(10.0)%				(208,692,366	)
Net Assets—100.0%			$	2,097,000,846

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $207,227,983 and the collateral received consisted of cash in the amount of $210,779,955. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(b)	Non-income producing security.
(c)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent 1.9% of net assets.
(d)	Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2018, the market value of restricted securities was $39,980,234, which is 1.9% of net assets. See details shown in the Restricted Securities table that follows.
(e)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(f)	Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(g)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(h)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Restricted Securities	Acquisition Date		Shares		Cost		Value
ANT International Co., Ltd. - Series C		06/07/18		1,458,697	$	8,183,290	$	8,183,290
Airbnb, Inc. - Series D		04/16/14		97,047		3,951,078		11,718,425
Airbnb, Inc. - Series E		01/28/16		9,760		908,601		1,178,520
Magic Leap, Inc. - Series C		01/20/16		124,428		2,865,950		3,359,556
Magic Leap, Inc. - Series D		10/12/17		90,348		2,439,396		2,439,396
UBER Technologies, Inc.		01/16/18		1,703		56,146		83,059
UBER Technologies, Inc. - Class A		01/16/18		4,669		153,932		227,718
UBER Technologies, Inc. - Series A		01/16/18		665		21,924		32,434
UBER Technologies, Inc. - Series B		01/16/18		1,785		58,850		87,058
UBER Technologies, Inc. -Series C-1		01/16/18		472		15,561		23,020
UBER Technologies, Inc. -Series C-2		01/16/18		382		12,594		18,631
UBER Technologies, Inc. -Series C-3		01/16/18		5		165		244
UBER Technologies, Inc. - Series D		01/16/18		424		13,979		20,679
UBER Technologies, Inc. - Series E		01/16/18		204		6,726		9,950
UBER Technologies, Inc. - Series G		12/03/15		98,227		4,790,747		4,790,750
UBER Technologies, Inc. -Series G-1		01/16/18		1,024		49,943		49,943
WeWork Cos., Inc. - Class A		06/23/15		2,563		84,296		132,789
WeWork Cos., Inc. - Series E		06/23/15		64,744		2,129,402		3,354,386
Xiaoju Kuaizhi, Inc. -Series A-17		10/19/15		91,053		2,497,238		4,270,386
							$	39,980,234

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Aerospace & Defense	$	91,945,650	$	—		$	—	$	91,945,650
Auto Components		18,364,484		—			—		18,364,484
Automobiles		42,395,102		—			—		42,395,102
Banks		10,164,097		—			—		10,164,097
Biotechnology		47,001,848		—			—		47,001,848
Capital Markets		82,507,685		—			—		82,507,685
Chemicals		14,797,916		—			—		14,797,916
Electric Utilities		9,507,954		—			—		9,507,954
Entertainment		86,116,092		—			—		86,116,092
Equity Real Estate Investment Trusts		10,774,575		—			—		10,774,575
Health Care Equipment & Supplies		111,665,159		—			—		111,665,159
Health Care Providers & Services		160,841,943		—			—		160,841,943
Hotels, Restaurants & Leisure		58,257,633		—			—		58,257,633
Household Durables		8,407,616		—			—		8,407,616
Industrial Conglomerates		30,155,204		—			—		30,155,204
Insurance		16,592,913		—			—		16,592,913
Interactive Media & Services		218,370,889		47,031,110			—		265,401,999
Internet & Direct Marketing Retail		258,689,738		—			—		258,689,738
IT Services		211,941,997		—			—		211,941,997
Machinery		27,610,213		—			—		27,610,213
Multi-Utilities		18,283,136		—			—		18,283,136
Multiline Retail		38,828,744		—			—		38,828,744
Pharmaceuticals		5,936,436		—			—		5,936,436
Professional Services		32,099,490		—			—		32,099,490
Real Estate Management & Development		—		—			132,789		132,789
Semiconductors & Semiconductor Equipment		32,788,626		—			—		32,788,626
Software		287,659,699		—			227,718		287,887,417
Technology Hardware, Storage & Peripherals		16,073,391		—			—		16,073,391
Textiles, Apparel & Luxury Goods		23,734,661		—			—		23,734,661
Tobacco		20,510,808		—			—		20,510,808
Water Utilities		3,998,237		—			—		3,998,237
Total Common Stocks		1,996,021,936		47,031,110			360,507		2,043,413,553
Total Convertible Preferred Stocks*		—		—			39,619,727		39,619,727
Total Corporate Bonds & Notes*		—		3,835,262			—		3,835,262
Total Short-Term Investment*		7,899,784		—			—		7,899,784
Total Securities Lending Reinvestments*		—		210,924,886			—		210,924,886
Total Investments	$	2,003,921,720	$	261,791,258		$	39,980,234	$	2,305,693,212
Collateral for Securities Loaned (Liability)	$	—	$	(210,779,955	)	$	—	$	(210,779,955	)

* See Schedule of Investments for additional detailed categorizations.

During the year ended December 31, 2018, transfers out of Level 3 into Level 2 in the amount of $2,514,875 were due to the initiation of trading activity which resulted in the availability of significant observable inputs.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:    

Investments in Securities	Balance as of December 31, 2017		Change in Unrealized Appreciation		Purchases		Transfers Out			Balance as of December 31, 2018		Change in Unrealized Appreciation from Investments Held at December 31, 2018
Common Stocks
Internet Software & Services	$	2,514,875	$	—	$	—	$	(2,514,875	)	$	—	$	—
Real Estate Management & Development		117,514		15,275		—		—			132,789		15,275
Software		—		73,786		153,932		—			227,718		73,786
Convertible Preferred Stocks
Internet & Direct Retail Marketing		15,962,267		1,205,065		8,183,289		—			25,350,621		1,205,065
Real Estate Management & Development		2,968,512		385,874		—		—			3,354,386		385,874
Software		9,185,564		1,493,269		235,887		—			10,914,720		1,493,269
	$	30,748,732	$	3,173,269	$	8,573,108	$	(2,514,875	)	$	39,980,234	$	3,173,269

	Fair Value at December 31, 2018		Valuation Technique(s)		Unobservable Input		Range						Weighted Average			Relationship Between Fair Value and Input; if input value increases then Fair Value:
Common Stock
Real Estate Management & Development	$	132,789		Market Transaction Method		Precedent Transaction	$	51.81		$	51.81		$	51.81			Increase
Software		227,718		Market Transaction Method		Precedent Transaction	$	48.77		$	48.77		$	48.77			Increase
Convertible Preferred Stocks
Internet & Direct Marketing Retail		12,896,945		Discounted Cash Flow		Weighted Average Cost of Capital		14.00	%		16.00	%		15.00	%		Decrease
						Perpetual Growth Rate		3.00	%		4.00	%		3.50	%		Increase
				Comparable Company Analysis		Enterprise Value/Revenue		8.7x			8.7x			8.7x			Increase
						Discount for Lack of Marketability		15.00	%		15.00	%		15.00	%		Decrease
		8,183,290		Market Transaction Method		Precedent Transaction	$	5.61		$	5.61		$	5.61			Increase
		4,270,386		Market Transaction Method		Secondary Market Transaction	$	46.90		$	46.90		$	46.90			Increase
Real Estate Management & Development		3,354,386		Market Transaction Method		Precedent Transaction	$	51.81		$	51.81		$	51.81			Increase
Software		5,798,952		Market Transaction Method		Precedent Transaction	$	27.00		$	27.00		$	27.00			Increase
		5,115,768		Market Transaction Method		Precedent Transaction	$	48.77		$	48.77		$	48.77			Increase

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	2,297,793,428
Affiliated investments at value (c)		7,899,784
Cash		3,588,679
Receivable for:
Fund shares sold		433,721
Dividends and interest		933,128
Dividends on affiliated investments		14,799
Prepaid expenses		6,558
Total Assets		2,310,670,097
Liabilities
Collateral for securities loaned		210,779,955
Payables for:
Affiliated investments purchased		13,983
Fund shares redeemed		1,327,095
Accrued Expenses:
Management fees		961,927
Distribution and service fees		180,242
Deferred trustees’ fees		138,370
Other expenses		267,679
Total Liabilities		213,669,251
Net Assets	$	2,097,000,846
Net Assets Consist of:
Paid in surplus	$	1,359,557,733
Distributable earnings (Accumulated losses)		737,443,113
Net Assets	$	2,097,000,846
Net Assets
Class A	$	1,259,681,646
Class B		801,546,314
Class E		35,772,886
Capital Shares Outstanding*
Class A		60,813,327
Class B		39,586,954
Class E		1,746,219
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	20.71
Class B		20.25
Class E		20.49

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments, excluding affiliated investments, was $1,913,723,412.
(b)	Includes securities loaned at value of $207,227,983.
(c)	Identified cost of affiliated investments was $7,899,784.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	22,661,263
Dividends from affiliated investments		242,918
Securities lending income		1,656,728
Total investment income		24,560,909
Expenses
Management fees		14,739,113
Administration fees		85,967
Custodian and accounting fees		177,654
Distribution and service fees—Class B		2,261,941
Distribution and service fees—Class E		63,775
Audit and tax services		49,450
Legal		45,316
Trustees’ fees and expenses		33,734
Shareholder reporting		144,095
Insurance		15,803
Miscellaneous		32,319
Total expenses		17,649,167
Less management fee waiver		(1,868,828	)
Net expenses		15,780,339
Net Investment Income		8,780,570
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments		349,015,336
Foreign currency transactions		49,691
Net realized gain		349,065,027
Net change in unrealized depreciation on:
Investments		(345,001,691	)
Foreign currency transactions		(514	)
Net change in unrealized depreciation		(345,002,205	)
Net realized and unrealized gain		4,062,822
Net Increase in Net Assets From Operations	$	12,843,392

(a) Net of foreign withholding taxes of $37,263.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	8,780,570		$	8,104,959
Net realized gain		349,065,027			438,536,537
Net change in unrealized appreciation (depreciation)		(345,002,205	)		249,571,128
Increase in net assets from operations		12,843,392			696,212,624
From Distributions to Shareholders(a)
Class A		(271,386,065	)		(97,483,508	)
Class B		(166,263,941	)		(49,676,108	)
Class E		(7,721,716	)		(2,482,284	)
Total distributions		(445,371,722	)		(149,641,900	)
Increase (decrease) in net assets from capital share transactions		17,870,692			(255,810,822	)
Total increase (decrease) in net assets		(414,657,638	)		290,759,902
Net Assets
Beginning of period		2,511,658,484			2,220,898,582
End of period	$	2,097,000,846		$	2,511,658,484	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,071,438		$	25,857,156			1,123,384		$	26,033,368
Reinvestments		11,572,967			271,386,065			4,315,339			97,483,508
Redemptions		(14,768,688	)		(378,968,481	)		(15,467,076	)		(358,976,021	)
Net decrease		(2,124,283	)	$	(81,725,260	)		(10,028,353	)	$	(235,459,145	)
Class B
Sales		4,128,655		$	99,633,158			3,239,197		$	74,238,132
Reinvestments		7,241,461			166,263,941			2,236,655			49,676,108
Redemptions		(6,964,316	)		(167,472,503	)		(6,233,618	)		(142,249,231	)
Net increase (decrease)		4,405,800		$	98,424,596			(757,766	)	$	(18,334,991	)
Class E
Sales		142,194		$	3,592,923			120,859		$	2,766,535
Reinvestments		332,689			7,721,716			110,767			2,482,284
Redemptions		(410,066	)		(10,143,283	)		(311,052	)		(7,265,505	)
Net increase (decrease)		64,817		$	1,171,356			(79,426	)	$	(2,016,686	)
Increase (decrease) derived from capital shares transactions				$	17,870,692					$	(255,810,822	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(4,707,453	)	$	(92,776,055	)
Class B		(690,425	)		(48,985,683	)
Class E		(68,054	)		(2,414,230	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $7,648,501 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	25.34		$	20.18		$	22.70		$	24.76		$	24.51
Income (Loss) from Investment Operations
Net investment income (a)		0.11			0.10			0.07	(b)		0.04			0.04
Net realized and unrealized gain		0.23			6.55			0.13			2.55			1.94
Total income (loss) from investment operations		0.34			6.65			0.20			2.59			1.98
Less Distributions
Distributions from net investment income		(0.11	)		(0.07	)		(0.01	)		(0.04	)		(0.02	)
Distributions from net realized capital gains		(4.86	)		(1.42	)		(2.71	)		(4.61	)		(1.71	)
Total distributions		(4.97	)		(1.49	)		(2.72	)		(4.65	)		(1.73	)
Net Asset Value, End of Period	$	20.71		$	25.34		$	20.18		$	22.70		$	24.76
Total Return (%) (c)		(0.94	)		33.86			1.76			10.78			9.09
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.62			0.63			0.62			0.62			0.63
Net ratio of expenses to average net assets (%) (d)(e)		0.55			0.56			0.58			0.58			0.58
Ratio of net investment income to average net assets (%)		0.45			0.42			0.34	(b)		0.16			0.15
Portfolio turnover rate (%)		39			49			42			35			34
Net assets, end of period (in millions)	$	1,259.7		$	1,594.6		$	1,472.7		$	1,540.8		$	1,710.2
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	24.87		$	19.84		$	22.40		$	24.51		$	24.32
Income (Loss) from Investment Operations
Net investment income (loss) (a)		0.05			0.04			0.02	(b)		(0.02	)		(0.02	)
Net realized and unrealized gain		0.24			6.43			0.13			2.52			1.92
Total income (loss) from investment operations		0.29			6.47			0.15			2.50			1.90
Less Distributions
Distributions from net investment income		(0.05	)		(0.02	)		0.00			0.00			0.00
Distributions from net realized capital gains		(4.86	)		(1.42	)		(2.71	)		(4.61	)		(1.71	)
Total distributions		(4.91	)		(1.44	)		(2.71	)		(4.61	)		(1.71	)
Net Asset Value, End of Period	$	20.25		$	24.87		$	19.84		$	22.40		$	24.51
Total Return (%) (c)		(1.15	)		33.47			1.53			10.51			8.83
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.87			0.88			0.87			0.87			0.88
Net ratio of expenses to average net assets (%) (d)(e)		0.80			0.81			0.83			0.83			0.83
Ratio of net investment income (loss) to average net assets (%)		0.21			0.17			0.09	(b)		(0.09	)		(0.09	)
Portfolio turnover rate (%)		39			49			42			35			34
Net assets, end of period (in millions)	$	801.5		$	874.9		$	712.9		$	751.5		$	642.4

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	25.11		$	20.01		$	22.55		$	24.62		$	24.40
Income (Loss) from Investment Operations
Net investment income (a)		0.07			0.06			0.04	(b)		0.00	(f)		0.00	(f)
Net realized and unrealized gain		0.25			6.50			0.13			2.54			1.93
Total income (loss) from investment operations		0.32			6.56			0.17			2.54			1.93
Less Distributions
Distributions from net investment income		(0.08	)		(0.04	)		0.00			0.00			0.00
Distributions from net realized capital gains		(4.86	)		(1.42	)		(2.71	)		(4.61	)		(1.71	)
Total distributions		(4.94	)		(1.46	)		(2.71	)		(4.61	)		(1.71	)
Net Asset Value, End of Period	$	20.49		$	25.11		$	20.01		$	22.55		$	24.62
Total Return (%) (c)		(1.05	)		33.66			1.61			10.63			8.93
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.77			0.78			0.77			0.77			0.78
Net ratio of expenses to average net assets (%) (d)(e)		0.70			0.71			0.73			0.73			0.73
Ratio of net investment income to average net assets (%)		0.30			0.27			0.19	(b)		0.01			0.00	(g)
Portfolio turnover rate (%)		39			49			42			35			34
Net assets, end of period (in millions)	$	35.8		$	42.2		$	35.2		$	39.5		$	38.1

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.02% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	The effect of the voluntary portion of the waiver on the net ratio of expenses to average net assets was 0.02% for the year ended December 31, 2018 and 0.03% for each of the years ended December 31, 2017 through 2014 (see Note 5 of the Notes to Financial Statements).
(e)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(f)	Net investment income (loss) was less than $0.01.
(g)	Ratio of net investment income (loss) to average net assets was less than 0.01%.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is T. Rowe Price Large Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-14

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-15

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $41,609,056. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities

BHFTII-16

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	959,830,834	$	0	$	1,374,555,811

The Portfolio engaged in security transactions with other accounts managed by T. Rowe Price Associates, Inc., the subadviser to the Portfolio, that amounted to $2,214,848 in purchases and $11,384,866 in sales of investments, which are included above, and resulted in realized gains of $3,973,477.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$14,739,113		0.650	%	Of the first $50 million
		0.600	%	On amounts in excess of $50 million

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. T. Rowe Price Associates, Inc. (“T. Rowe Price”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers -Pursuant to an expense agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows provided the Portfolio’s assets exceed $1 billion:

% per annum	Average Daily Net Assets
0.080%	On the first $50 million
0.050%	Of the next $50 million
0.060%	Of the next $900 million
0.035%	Of the next $500 million
0.050%	On amounts in excess of $1.5 billion

BHFTII-17

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

An identical agreement was in place for the period June 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 amounted to $1,256,178 and are included in the total amounts shown as management fee waivers in the Statement of Operations.

T. Rowe Price agreed to a voluntary subadvisory fee waiver that applies if (i) assets under management by T. Rowe Price for the Trust and Brighthouse Funds Trust I (“BHFTI), an affiliate of the Trust, in the aggregate, exceed $750 million, (ii) T. Rowe Price subadvises three or more portfolios of the Trust and BHFTI in the aggregate, and (iii) at least one of those portfolios is a large cap domestic equity portfolio.

If the aforementioned conditions are met, the Subadviser will waive its subadvisory fee paid by Brighthouse Investment Advisers by 5% for combined Trust and BHFTI average daily net assets over $750 million, 7.5% for the next $1.5 billion of combined assets, and 10% for amounts over $3 billion. Brighthouse Investment Advisers has voluntarily agreed to reduce its advisory fee for the Portfolio by the amount waived (if any) by T. Rowe Price for the Portfolio pursuant to this voluntary subadvisory fee waiver. Because these fee waivers are voluntary, and not contractual, they may be discontinued by T. Rowe Price and Brighthouse Investment Advisers at any time. Amounts voluntarily waived by Brighthouse Investment Advisers for the year ended December 31, 2018 amounted to $612,650 and are included in the total amounts shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the year ended December 31, 2018 is as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Ending Value as of December 31, 2018		Income earned from affiliates during the period		Number of shares held at December 31, 2018
T. Rowe Price Government Reserve Fund	$	13,044,598	$	415,354,803	$	(420,499,617	)	$	7,899,784	$	242,918		7,899,784

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-18

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,927,566,860
Gross unrealized appreciation		503,936,418
Gross unrealized depreciation		(125,810,066	)
Net unrealized appreciation (depreciation)	$	378,126,352

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$17,613,767	$	5,465,932	$	427,757,955	$	144,175,968	$	445,371,722	$	149,641,900

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$8,558,039	$	350,897,151	$	378,126,293	$	—	$	737,581,483

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-19

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of T. Rowe Price Large Cap Growth Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the T. Rowe Price Large Cap Growth Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the T. Rowe Price Large Cap Growth Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-20

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-21

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-22

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-23

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-24

Brighthouse Funds Trust II

T. Rowe Price Large Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

T. Rowe Price Large Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and T. Rowe Price Associates, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-, three- and five-year periods ended June 30, 2018. The Board also considered that the Portfolio underperformed its benchmark, the Russell 1000 Growth Index, for theone-, three- and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the median of the Expense Group, Expense Universe, andSub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were above the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-25

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, E, and G shares of the T. Rowe Price Small Cap Growth Portfolio returned-6.55%,-6.78%,-6.67%, and-6.84%, respectively. The Portfolio’s benchmark, the MSCI U.S. Small Cap Growth Index¹, returned-9.03%.

MARKET ENVIRONMENT / CONDITIONS

U.S. stocks declined in 2018, which marked the worst year for the U.S. equity market since 2008. Stocks rose for much of the year, though the advance was somewhat sluggish. Market volatility was elevated throughout 2018, thanks partly to rising interest rates. The Federal Reserve (the “Fed”) continued its normalization of monetary policy, with four short-term interest rate hikes in 2018, and the10-year Treasury note yield reached a seven-year high of about 3.25% in early October. Heightened global trade tensions, especially between the U.S. and China, periodically weighed on U.S. and global equity markets throughout 2018.

While most major U.S. stock indexes reachedall-time highs around the end of the third quarter, equities plunged in the final months of the year, with several indexes in or close to bear market territory—down at least 20% from recent highs—by the end of the year. Stocks fell sharply due to factors such as expectations for additional interest rate increases from the Fed in 2019; expectations for slowing corporate earnings growth in 2019, as the tailwinds from the late-2017 tax reform that boosted corporate earnings in 2018 subside; signs of slowing economic growth in different parts of the world; and increased U.S.-China tensions. Turmoil in the Trump administration also weighed on investor sentiment.

As measured by various Russell Indexes, growth stocks held up better than value stocks across all market capitalizations.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Portfolio outpaced the benchmark MSCI U.S. Small Cap Growth Index for the12-month period ended December 31, 2018, with both the Portfolio and benchmark index posting negative returns. Broadly speaking, stock selection accounted for relative outperformance.

The top relative contributor for the period was Industrials & Business Services, due to strong stock selection. HEICO, a notable holding for the period, is the world’s largest manufacturer ofFAA-approved, reverse-engineered aircraft replacement parts. Shares traded higher after the company reported a series of strong quarterly results highlighted by higher revenues in the Electronic and Flight Support segments, solid margins, and an improving outlook guided by the company. Teledyne Technologies, an industrial conglomerate manufacturer that provides critical components tohigher-end industrial products, added value through its recent acquisition of e2v Technologies.

Materials also contributed to relative performance, because of strong stock choices. One notable holding was Ingevity, which provides specialty chemicals and high-performance carbon materials and technologies. Shares traded higher as the company exhibited strong execution and solid earnings results throughout the year.

Additionally, the Health Care sector was a source of relative strength, due to stock selection. Veeva Systems, a cloud-based software company in the sector, was a holding that performed well.

Stock selection within the Consumer Discretionary sector benefited relative performance. Burlington Stores shares outperformed in 2018. The company was in the early innings of refining its business model and was on the right side of a secular trend in retailing towardoff-price retailers that offer bargain-hunting opportunities for consumers.

Finally, Real Estate was a relative contributor due to strong stock choices. A notable holding was Equity LifeStyle Properties, which traded higher during the period.

The Information Technology sector was an area of relative weakness, due to stock selection. Coherent is a leading manufacturer of specialty laser diodes and equipment. Negative sentiment surrounding the likelihood of organic LED adoption, due to weaker-than-anticipated iPhone X sales, put shares under pressure over the period. Shares of Cognex, which designs and assemblesend-to-end machine vision systems for factory automation and logistics applications, traded lower during the period as weaker-than-expected guidance attributable to macro factors, most notably China, weighed on demand outlook.

Utilities was also a detractor for the period, as a result of poor stock choices and a slight overweight allocation. A notable holding was Ormat Technologies, which designs, builds, acquires, owns, and operates geothermal power plants and develops innovative power systems. Shares traded lower during the period as lava flows from Hawaii’s Kilauea volcano disrupted operations of the Puna plant earlier this year and extended operational maintenance at three newly acquired facilities contributed to lost revenue and weaker margins.

The Portfolio is structured to be sector neutral to provide alpha from security selection. However, relative sector weights may fluctuate from time to time. At the end of the reporting period, the Portfolio’s most substantially overweight position relative to the MSCI U.S.

BHFTII-1

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*—(Continued)

Small Cap Growth Index was Industrials & Business Services. In contrast, the Portfolio’s most substantially underweight position was in Information Technology.

Sudhir Nanda

Portfolio Manager

T. Rowe Price Associates, Inc.

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

A $10,000 INVESTMENT COMPARED TO THE MSCI U.S. SMALL CAP GROWTH INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
T. Rowe Price Small Cap Growth Portfolio
Class A		-6.55		7.10		16.27		—
Class B		-6.78		6.83		15.98		—
Class E		-6.67		6.94		16.09		—
Class G		-6.84		—		—		6.89
MSCI U.S. Small Cap Growth Index		-9.03		4.93		14.73		—

¹ The MSCI U.S. Small Cap Growth Index represents the growth companies of the MSCI U.S. Small Cap 1750 Index. (The MSCI U.S. Small Cap 1750 Index represents the universe of small capitalization companies in the U.S. equity market).

² Inception dates of the Class A, Class B, Class E and Class G shares are 3/3/97, 7/30/02, 5/1/01 and 11/12/14, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Burlington Stores, Inc.		1.1
Teledyne Technologies, Inc.		1.0
HEICO Corp.- Class A		1.0
Bright Horizons Family Solutions, Inc.		1.0
Molina Healthcare, Inc.		0.9
Fair Isaac Corp.		0.9
Cable One, Inc.		0.8
Euronet Worldwide, Inc.		0.8
ICU Medical, Inc.		0.8
Pool Corp.		0.8

Top Sectors

	% of Net Assets
Health Care		23.2
Information Technology		21.8
Industrials		16.9
Consumer Discretionary		14.4
Financials		5.9
Materials		4.2
Consumer Staples		3.9
Communication Services		3.2
Real Estate		3.0
Energy		2.5

BHFTII-3

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

T. Rowe Price Small Cap Growth Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.47	%	$	1,000.00	$	866.90	$	2.21
	Hypothetical*		0.47	%	$	1,000.00	$	1,022.84	$	2.40
Class B (a)	Actual		0.72	%	$	1,000.00	$	865.60	$	3.39
	Hypothetical*		0.72	%	$	1,000.00	$	1,021.58	$	3.67
Class E (a)	Actual		0.62	%	$	1,000.00	$	866.30	$	2.92
	Hypothetical*		0.62	%	$	1,000.00	$	1,022.08	$	3.16
Class G (a)	Actual		0.77	%	$	1,000.00	$	865.50	$	3.62
	Hypothetical*		0.77	%	$	1,000.00	$	1,021.32	$	3.92

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—99.4% of Net Assets

Security Description	Shares		Value
Aerospace & Defense—4.6%
Aerojet Rocketdyne Holdings, Inc. (a) (b)		233,706	$	8,233,462
BWX Technologies, Inc. (b)		113,933		4,355,659
Curtiss-Wright Corp.		61,659		6,296,617
HEICO Corp. - Class A		186,807		11,768,841
Hexcel Corp. (b)		107,570		6,168,064
Moog, Inc. - Class A		79,463		6,156,793
Teledyne Technologies, Inc. (a)		60,846		12,599,381
				55,578,817
Air Freight & Logistics—0.4%
XPO Logistics, Inc. (a) (b)		83,421		4,758,334
Airlines—0.1%
Hawaiian Holdings, Inc. (b)		42,700		1,127,707
Auto Components—0.7%
Cooper-Standard Holdings, Inc. (a)		34,397		2,136,742
LCI Industries		37,290		2,490,972
Visteon Corp. (a) (b)		56,000		3,375,680
				8,003,394
Banks—1.7%
Ameris Bancorp (b)		106,793		3,382,134
Carolina Financial Corp.		100,219		2,965,480
CenterState Bank Corp.		196,728		4,139,157
First Bancorp		136,100		4,445,026
Signature Bank		25,369		2,608,187
SVB Financial Group (a)		14,091		2,676,163
				20,216,147
Beverages—0.6%
Boston Beer Co., Inc. (The) - Class A (a)		18,666		4,495,519
Coca-Cola Bottling Co. Consolidated		16,900		2,997,722
				7,493,241
Biotechnology—7.8%
Abeona Therapeutics, Inc. (a) (b)		28,300		202,062
ACADIA Pharmaceuticals, Inc. (a) (b)		132,288		2,139,097
Acceleron Pharma, Inc. (a) (b)		51,167		2,228,323
Agios Pharmaceuticals, Inc. (a) (b)		63,543		2,929,968
Aimmune Therapeutics, Inc. (a) (b)		58,994		1,411,137
Alkermes plc (a)		44,085		1,300,948
Alnylam Pharmaceuticals, Inc. (a) (b)		7,584		552,949
AMAG Pharmaceuticals, Inc. (a) (b)		59,984		911,157
Amicus Therapeutics, Inc. (a) (b)		110,300		1,056,674
Array BioPharma, Inc. (a) (b)		226,600		3,229,050
Bluebird Bio, Inc. (a) (b)		21,567		2,139,446
Blueprint Medicines Corp. (a) (b)		44,117		2,378,347
CRISPR Therapeutics AG (a) (b)		28,900		825,673
Emergent BioSolutions, Inc. (a)		99,400		5,892,432
Enanta Pharmaceuticals, Inc. (a) (b)		14,200		1,005,786
Exact Sciences Corp. (a) (b)		132,700		8,373,370
Exelixis, Inc. (a)		47,067		925,808
FibroGen, Inc. (a)		71,400		3,304,392
Genomic Health, Inc. (a)		55,300		3,561,873
Global Blood Therapeutics, Inc. (a) (b)		40,387		1,657,886
Biotechnology—(Continued)
GlycoMimetics, Inc. (a)		51,900		491,493
Immunomedics, Inc. (a) (b)		116,095		1,656,676
Insmed, Inc. (a) (b)		123,284		1,617,486
Ionis Pharmaceuticals, Inc. (a)		26,886		1,453,457
Ironwood Pharmaceuticals, Inc. (a)		129,080		1,337,269
Ligand Pharmaceuticals, Inc. (a) (b)		42,568		5,776,478
Loxo Oncology, Inc. (a)		26,900		3,767,883
Madrigal Pharmaceuticals, Inc. (a) (b)		5,100		574,872
Neurocrine Biosciences, Inc. (a)		53,742		3,837,716
Repligen Corp. (a) (b)		75,734		3,994,211
Sage Therapeutics, Inc. (a)		49,238		4,716,508
Sarepta Therapeutics, Inc. (a) (b)		67,700		7,388,101
Seattle Genetics, Inc. (a)		34,312		1,944,118
Spark Therapeutics, Inc. (a) (b)		40,118		1,570,219
TESARO, Inc. (a) (b)		32,095		2,383,054
Ultragenyx Pharmaceutical, Inc. (a) (b)		48,196		2,095,562
uniQure NV (a) (b)		32,900		948,178
Xencor, Inc. (a)		74,100		2,679,456
				94,259,115
Building Products—1.0%
AAON, Inc. (b)		35,508		1,244,910
Lennox International, Inc.		36,082		7,896,907
Patrick Industries, Inc. (a)		104,635		3,098,242
				12,240,059
Capital Markets—2.3%
Cboe Global Markets, Inc.		73,416		7,182,287
E*Trade Financial Corp.		70,165		3,078,840
FactSet Research Systems, Inc.		11,482		2,297,893
MarketAxess Holdings, Inc.		40,895		8,641,522
MSCI, Inc.		46,116		6,798,882
				27,999,424
Chemicals—3.1%
AdvanSix, Inc. (a)		90,708		2,207,833
Chase Corp.		48,305		4,832,915
Ingevity Corp. (a)		99,168		8,299,370
Innospec, Inc.		76,578		4,729,457
Minerals Technologies, Inc.		44,431		2,281,088
NewMarket Corp. (b)		7,791		3,210,593
PolyOne Corp.		121,629		3,478,589
Quaker Chemical Corp.		16,300		2,896,673
ScottsMiracle-Gro Co. (The) (b)		48,700		2,993,102
Stepan Co.		24,600		1,820,400
				36,750,020
Commercial Services & Supplies—2.5%
Advanced Disposal Services, Inc. (a)		166,348		3,982,371
Casella Waste Systems, Inc. - Class A (a)		250,200		7,128,198
Healthcare Services Group, Inc. (b)		77,512		3,114,432
Rollins, Inc. (b)		212,549		7,673,019
U.S. Ecology, Inc.		68,114		4,289,820
UniFirst Corp.		24,900		3,562,443
				29,750,283

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Communications Equipment—0.6%
ARRIS International plc (a)		77,607	$	2,372,446
EchoStar Corp. - Class A (a)		41,262		1,515,141
NetScout Systems, Inc. (a) (b)		68,269		1,613,196
Plantronics, Inc.		58,862		1,948,332
				7,449,115
Construction Materials—0.2%
Eagle Materials, Inc.		42,500		2,593,775
Consumer Finance—0.4%
PRA Group, Inc. (a) (b)		74,787		1,822,559
SLM Corp. (a) (b)		337,800		2,807,118
				4,629,677
Containers & Packaging—0.8%
Berry Global Group, Inc. (a)		161,697		7,685,459
Graphic Packaging Holding Co. (b)		214,719		2,284,610
				9,970,069
Distributors—0.8%
Pool Corp.		63,785		9,481,640
Diversified Consumer Services—3.4%
Bright Horizons Family Solutions, Inc. (a)		103,154		11,496,513
frontdoor, Inc. (a)		77,753		2,069,007
Grand Canyon Education, Inc. (a)		62,856		6,042,976
Service Corp. International		211,732		8,524,330
ServiceMaster Global Holdings, Inc. (a)		179,113		6,580,612
Sotheby’s (a)		43,709		1,736,996
Strategic Education, Inc.		24,725		2,804,310
Weight Watchers International, Inc. (a)		47,300		1,823,415
				41,078,159
Electrical Equipment—0.6%
Atkore International Group, Inc. (a)		174,270		3,457,517
Generac Holdings, Inc. (a)		67,002		3,329,999
				6,787,516
Electronic Equipment, Instruments & Components—3.0%
Cognex Corp. (b)		99,490		3,847,278
Coherent, Inc. (a) (b)		43,443		4,592,360
ePlus, Inc. (a)		12,600		896,742
Littelfuse, Inc.		36,400		6,241,872
Novanta, Inc. (a)		103,600		6,526,800
OSI Systems, Inc. (a)		50,254		3,683,618
Tech Data Corp. (a)		26,800		2,192,508
Zebra Technologies Corp. - Class A (a)		53,200		8,471,036
				36,452,214
Energy Equipment & Services—0.7%
Apergy Corp. (a)		121,700		3,295,636
Computer Modelling Group, Ltd.		54,725		244,122
Dril-Quip, Inc. (a)		28,032		841,801
Exterran Corp. (a)		97,600		1,727,520
Energy Equipment & Services—(Continued)
Oceaneering International, Inc. (a)		59,673		722,043
RPC, Inc. (b)		116,100		1,145,907
				7,977,029
Entertainment—1.5%
Lions Gate Entertainment Corp. - Class B		100,533		1,495,931
Live Nation Entertainment, Inc. (a) (b)		157,336		7,748,798
Take-Two Interactive Software, Inc. (a)		89,416		9,204,483
				18,449,212
Equity Real Estate Investment Trusts—2.9%
CoreSite Realty Corp. (b)		63,170		5,510,319
CubeSmart		116,671		3,347,291
CyrusOne, Inc. (b)		111,255		5,883,164
Empire State Realty Trust, Inc. - Class A		112,138		1,595,724
Equity Lifestyle Properties, Inc.		57,744		5,608,675
First Industrial Realty Trust, Inc.		164,050		4,734,483
Pebblebrook Hotel Trust		26,203		741,807
PS Business Parks, Inc.		24,111		3,158,541
Terreno Realty Corp.		109,417		3,848,196
				34,428,200
Food & Staples Retailing—1.7%
Casey’s General Stores, Inc.		66,172		8,479,280
Performance Food Group Co. (a)		213,600		6,892,872
Sprouts Farmers Market, Inc. (a)		209,100		4,915,941
				20,288,093
Food Products—1.4%
J&J Snack Foods Corp.		41,332		5,976,194
John B Sanfilippo & Son, Inc.		32,995		1,836,502
Post Holdings, Inc. (a) (b)		67,025		5,973,938
TreeHouse Foods, Inc. (a) (b)		55,344		2,806,494
				16,593,128
Health Care Equipment & Supplies—5.4%
Avanos Medical, Inc. (a)		53,988		2,418,123
Cantel Medical Corp.		77,996		5,806,802
Cooper Cos., Inc. (The)		16,502		4,199,759
Globus Medical, Inc. - Class A (a)		93,500		4,046,680
Haemonetics Corp. (a)		56,269		5,629,713
ICU Medical, Inc. (a)		42,480		9,754,682
Inogen, Inc. (a)		35,334		4,387,423
LivaNova plc (a)		57,400		5,250,378
Masimo Corp. (a)		68,885		7,396,183
Natus Medical, Inc. (a) (b)		46,072		1,567,830
NuVasive, Inc. (a)		79,685		3,949,189
Penumbra, Inc. (a) (b)		37,169		4,542,052
West Pharmaceutical Services, Inc.		65,274		6,398,810
				65,347,624
Health Care Providers & Services—4.3%
Addus HomeCare Corp. (a)		59,716		4,053,522
BioTelemetry, Inc. (a)		71,877		4,292,495

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Health Care Providers & Services—(Continued)
Chemed Corp.		27,500	$	7,790,200
Corvel Corp. (a)		31,449		1,941,032
Encompass Health Corp.		80,509		4,967,405
Ensign Group, Inc. (The) (b)		139,900		5,426,721
Molina Healthcare, Inc. (a)		98,200		11,412,804
U.S. Physical Therapy, Inc.		47,758		4,888,031
WellCare Health Plans, Inc. (a)		27,199		6,421,412
				51,193,622
Health Care Technology—1.0%
Omnicell, Inc. (a)		85,722		5,249,615
Tabula Rasa HealthCare, Inc. (a)		34,700		2,212,472
Veeva Systems, Inc. - Class A (a)		50,162		4,480,470
				11,942,557
Hotels, Restaurants & Leisure—5.2%
Boyd Gaming Corp. (b)		181,500		3,771,570
Cheesecake Factory, Inc. (The) (b)		54,949		2,390,831
Choice Hotels International, Inc. (b)		40,368		2,889,542
Churchill Downs, Inc.		34,319		8,371,777
Denny’s Corp. (a)		285,219		4,623,400
Domino’s Pizza, Inc.		24,062		5,967,135
Hilton Grand Vacations, Inc. (a)		135,683		3,580,674
Marriott Vacations Worldwide Corp.		19,512		1,375,791
Papa John’s International, Inc. (b)		86,600		3,447,546
Penn National Gaming, Inc. (a) (b)		122,665		2,309,782
Ruth’s Hospitality Group, Inc.		163,300		3,711,809
Six Flags Entertainment Corp. (b)		59,859		3,329,956
Texas Roadhouse, Inc.		119,600		7,140,120
Vail Resorts, Inc. (b)		43,681		9,208,829
				62,118,762
Household Durables—0.6%
Helen of Troy, Ltd. (a)		58,876		7,723,354
Independent Power and Renewable Electricity Producers—0.4%
Ormat Technologies, Inc. (b)		87,290		4,565,267
Insurance—1.1%
Heritage Insurance Holdings, Inc.		57,817		851,066
Primerica, Inc.		89,409		8,736,154
Universal Insurance Holdings, Inc.		87,300		3,310,416
				12,897,636
Internet & Direct Marketing Retail—0.8%
Liberty Expedia Holdings, Inc. - Class A (a)		73,875		2,889,251
Shutterfly, Inc. (a)		42,261		1,701,428
Stamps.com, Inc. (a)		35,476		5,521,485
				10,112,164
IT Services—5.4%
Booz Allen Hamilton Holding Corp.		204,745		9,227,857
Broadridge Financial Solutions, Inc.		66,563		6,406,689
Cardtronics plc - Class A (a)		107,572		2,796,872
CoreLogic, Inc. (a)		131,330		4,389,049
IT Services—(Continued)
Euronet Worldwide, Inc. (a) (b)		96,598		9,889,703
Gartner, Inc. (a) (b)		33,161		4,239,302
GTT Communications, Inc. (a) (b)		71,900		1,701,154
Jack Henry & Associates, Inc.		22,262		2,816,588
MAXIMUS, Inc.		129,134		8,405,332
Science Applications International Corp.		80,300		5,115,110
Travelport Worldwide, Ltd.		193,289		3,019,174
WEX, Inc. (a)		47,974		6,719,239
				64,726,069
Leisure Products—0.3%
Brunswick Corp.		88,146		4,094,382
Life Sciences Tools & Services—2.3%
Bio-Rad Laboratories, Inc. - Class A (a)		20,289		4,711,512
Bruker Corp. (b)		55,000		1,637,350
Cambrex Corp. (a) (b)		80,963		3,057,163
Charles River Laboratories International, Inc. (a)		70,297		7,956,214
PRA Health Sciences, Inc. (a)		92,362		8,493,610
Syneos Health, Inc. (a)		45,886		1,805,614
				27,661,463
Machinery—3.5%
Chart Industries, Inc. (a)		32,062		2,084,992
Douglas Dynamics, Inc. (b)		93,500		3,355,715
Graco, Inc.		139,277		5,828,742
IDEX Corp.		22,573		2,850,067
John Bean Technologies Corp.		56,661		4,068,826
Lincoln Electric Holdings, Inc. (b)		32,772		2,584,072
Lydall, Inc. (a)		85,808		1,742,760
Middleby Corp. (The) (a) (b)		19,998		2,054,395
Nordson Corp.		34,294		4,092,989
Standex International Corp.		15,402		1,034,706
Toro Co. (The)		133,085		7,436,790
Woodward, Inc.		59,857		4,446,777
				41,580,831
Marine—0.1%
Matson, Inc.		26,460		847,249
Media—1.7%
Cable One, Inc.		12,100		9,923,210
GCI Liberty, Inc. - Class A (a) (b)		102,114		4,203,012
Gray Television, Inc. (a) (b)		171,054		2,521,336
MSG Networks, Inc. - Class A (a) (b)		174,682		4,115,508
				20,763,066
Metals & Mining—0.2%
Worthington Industries, Inc.		54,116		1,885,401
Multiline Retail—0.1%
Big Lots, Inc.		26,358		762,273
Oil, Gas & Consumable Fuels—1.8%
Carrizo Oil & Gas, Inc. (a)		55,028		621,266

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—(Continued)

Security Description	Shares		Value
Oil, Gas & Consumable Fuels—(Continued)
Centennial Resource Development, Inc. - Class A (a) (b)		245,627	$	2,706,810
Matador Resources Co. (a) (b)		254,134		3,946,701
PBF Energy, Inc. - Class A (b)		144,300		4,714,281
PDC Energy, Inc. (a)		107,178		3,189,617
WPX Energy, Inc. (a) (b)		585,858		6,649,488
				21,828,163
Personal Products—0.2%
Nu Skin Enterprises, Inc. - Class A		36,802		2,257,067
Pharmaceuticals—2.4%
Aerie Pharmaceuticals, Inc. (a)		47,112		1,700,743
Assertio Therapeutics, Inc. (a)		150,974		545,016
Catalent, Inc. (a)		167,570		5,224,833
Innoviva, Inc. (a)		77,730		1,356,389
Jazz Pharmaceuticals plc (a)		11,791		1,461,612
MyoKardia, Inc. (a)		39,037		1,907,348
Nektar Therapeutics (a)		64,244		2,111,700
Pacira Pharmaceuticals, Inc. (a)		33,107		1,424,263
Phibro Animal Health Corp. - Class A		77,841		2,503,367
Prestige Consumer Healthcare, Inc. (a) (b)		131,778		4,069,305
Supernus Pharmaceuticals, Inc. (a)		98,334		3,266,656
TherapeuticsMD, Inc. (a) (b)		238,610		909,104
Theravance Biopharma, Inc. (a) (b)		61,814		1,581,820
WAVE Life Sciences, Ltd. (a) (b)		21,287		894,905
				28,957,061
Professional Services—2.5%
ASGN, Inc. (a)		104,100		5,673,450
Dun & Bradstreet Corp. (The)		26,463		3,777,329
Exponent, Inc.		138,764		7,036,722
Insperity, Inc.		78,964		7,372,079
TransUnion		112,661		6,399,145
				30,258,725
Real Estate Management & Development—0.1%
Kennedy-Wilson Holdings, Inc. (b)		65,953		1,198,366
Road & Rail—0.9%
Landstar System, Inc.		55,965		5,354,172
Old Dominion Freight Line, Inc. (b)		49,246		6,081,388
				11,435,560
Semiconductors & Semiconductor Equipment—4.0%
Advanced Energy Industries, Inc. (a)		67,844		2,912,543
Cabot Microelectronics Corp.		33,683		3,211,674
Cirrus Logic, Inc. (a) (b)		114,374		3,794,929
Entegris, Inc. (b)		142,200		3,966,669
Ichor Holdings, Ltd. (a) (b)		57,300		933,990
Integrated Device Technology, Inc. (a)		184,872		8,953,351
MaxLinear, Inc. (a) (b)		222,689		3,919,326
Mellanox Technologies, Ltd. (a)		92,100		8,508,198
MKS Instruments, Inc.		83,100		5,369,091
Nanometrics, Inc. (a)		91,863		2,510,616
Versum Materials, Inc.		148,309		4,111,126
				48,191,513
Software—8.5%
ACI Worldwide, Inc. (a)		150,669		4,169,011
Aspen Technology, Inc. (a)		91,968		7,557,930
Blackbaud, Inc. (b)		86,224		5,423,490
CommVault Systems, Inc. (a) (b)		78,971		4,666,396
Descartes Systems Group, Inc. (The) (a)		75,558		1,999,265
Ellie Mae, Inc. (a) (b)		28,581		1,795,744
Envestnet, Inc. (a) (b)		117,635		5,786,466
Fair Isaac Corp. (a)		60,368		11,288,816
Fortinet, Inc. (a)		56,233		3,960,490
j2 Global, Inc. (b)		46,991		3,260,235
LogMeIn, Inc.		33,682		2,747,441
Manhattan Associates, Inc. (a)		85,623		3,627,846
Pegasystems, Inc. (b)		101,995		4,878,421
Proofpoint, Inc. (a)		59,401		4,978,398
PTC, Inc. (a) (b)		67,668		5,609,677
Qualys, Inc. (a)		78,200		5,844,668
RealPage, Inc. (a) (b)		122,763		5,915,949
SS&C Technologies Holdings, Inc.		157,680		7,112,945
Tyler Technologies, Inc. (a)		35,251		6,550,341
Ultimate Software Group, Inc. (The) (a)		22,924		5,613,400
				102,786,929
Specialty Retail—1.8%
Aaron’s, Inc.		27,861		1,171,555
Burlington Stores, Inc. (a)		84,066		13,675,016
Children’s Place, Inc. (The) (b)		21,892		1,972,250
Murphy USA, Inc. (a)		61,120		4,684,237
				21,503,058
Technology Hardware, Storage & Peripherals—0.2%
NCR Corp. (a) (b)		111,550		2,574,574
Textiles, Apparel & Luxury Goods—0.7%
Carter’s, Inc.		41,172		3,360,459
Steven Madden, Ltd. (b)		182,992		5,537,338
				8,897,797
Thrifts & Mortgage Finance—0.4%
MGIC Investment Corp. (a)		264,583		2,767,538
Radian Group, Inc.		148,182		2,424,258
				5,191,796
Trading Companies & Distributors—0.7%
Beacon Roofing Supply, Inc. (a)		69,750		2,212,470
Univar, Inc. (a)		132,508		2,350,692
Watsco, Inc.		31,571		4,392,789
				8,955,951
Total Common Stocks (Cost $1,016,923,758)				1,196,612,648
Short-Term Investment—0.8%
Mutual Fund—0.8%
T. Rowe Price Government Reserve Fund (c)		9,355,566		9,355,566
Total Short-Term Investments (Cost $9,355,566)				9,355,566

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (d)—18.6%

Security Description	Principal Amount*		Value
Certificates of Deposit— 9.0%
Banco Del Estado De Chile New York
2.720%, 1M LIBOR + 0.250%, 03/20/19 (e)		5,000,000	$	4,999,570
2.820%, 1M LIBOR + 0.350%, 05/20/19 (e)		2,000,000		1,999,958
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (e)		4,000,000		3,999,900
Bank of Nova Scotia
2.890%, SOFR + 0.430%, 05/16/19 (e)		7,000,000		6,999,995
3.072%, 3M LIBOR + 0.280%, 03/20/19 (e)		1,500,000		1,500,598
Barclays Bank plc
2.547%, 1M LIBOR + 0.200%, 02/04/19 (e)		2,000,000		1,999,810
Canadian Imperial Bank of Commerce 2.740%, 1M LIBOR + 0.270%, 07/19/19 (e)		4,000,000		3,998,376
China Construction Bank Corp. 2.550%, 01/07/19		3,000,000		3,000,000
Citibank N.A. 2.490%, 02/04/19		2,000,000		1,999,722
Commonwealth Bank of Australia
2.617%, 3M LIBOR + 0.140%, 04/23/19 (e)		500,000		500,002
2.642%, 1M LIBOR + 0.210%, 09/13/19 (e)		4,000,000		4,000,000
Credit Agricole S.A.
2.500%, 02/12/19		4,000,000		3,999,320
2.799%, 1M LIBOR + 0.320%, 05/21/19 (e)		4,000,000		4,000,252
Credit Suisse AG 2.620%, 04/01/19		10,000,000		9,994,820
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		2,000,000		1,999,852
Mitsubishi UFJ Trust and Banking Corp. Zero Coupon, 01/15/19		5,954,925		5,993,880
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (e)		2,000,000		2,000,012
Natixis New York
2.705%, 3M LIBOR + 0.090%, 05/10/19 (e)		3,000,000		2,998,110
2.731%, 3M LIBOR + 0.190%, 02/01/19 (e)		1,000,000		999,776
Royal Bank of Canada New York
2.650%, 1M LIBOR + 0.250%, 01/11/19 (e)		1,500,000		1,500,012
2.665%, 1M LIBOR + 0.210%, 09/17/19 (e)		5,000,000		4,994,885
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (e)		3,000,000		2,999,754
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (e)		4,000,000		3,998,224
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (e)		4,000,000		3,999,884
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (e)		8,000,000		7,999,840
Sumitomo Mitsui Banking Corp.
2.590%, 1M LIBOR + 0.190%, 04/11/19 (e)		3,000,000		2,998,899
2.700%, 02/25/19		2,000,000		2,000,184
Sumitomo Mitsui Banking Corp., New York 2.559%, 1M LIBOR + 0.180%, 03/05/19 (e)		2,000,000		1,999,526
Sumitomo Mitsui Trust Bank, Ltd. Zero Coupon, 03/12/19		3,971,110		3,978,280
Svenska Handelsbanken AB 2.767%, 1M LIBOR + 0.380%, 12/10/19 (e)		2,000,000		1,999,934
Wells Fargo Bank N.A. 2.730%, 3M LIBOR + 0.210%, 10/25/19 (e)		1,500,000		1,500,000
Certificates of Deposit—(Continued)
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (e)		1,500,000		1,499,991
				108,453,366
Commercial Paper—2.9%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (e)		4,000,000		3,998,892
Banco Santander S.A. 2.740%, 02/07/19		2,978,993		2,991,264
Bank of China, Ltd. 2.690%, 01/17/19		2,979,825		2,996,478	��
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (e)		2,000,000		2,000,000
ING Funding LLC
2.707%, 1M LIBOR + 0.320%, 02/08/19* (e)		4,000,000		4,000,372
Matchpoint Finance plc 2.890%, 05/08/19		3,941,879		3,957,012
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (e)		5,000,000		4,999,920
Toronto-Dominion Bank 2.729%, 11/05/19 (e)		7,000,000		6,999,230
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (e)		2,000,000		2,000,490
Westpac Banking Corp. 2.659%, 3M LIBOR + 0.070%, 08/07/19 (e)		1,000,000		999,343
				34,943,001
Repurchase Agreements—6.7%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $7,557,500; collateralized by various Common Stock with an aggregate market value of $8,251,375.		7,500,000		7,500,000
Citigroup Global Markets, Inc.
Repurchase Agreement dated 12/31/18 at 2.660%, due on 01/07/19 with a maturity value of $5,502,845; collateralized by U.S. Treasury Obligations with rates ranging from 0.625% - 3.125%, maturity dates ranging from 02/15/42 - 02/15/46, and various Common Stock with an aggregate market value of $5,798,573.		5,500,000		5,500,000
Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $501,356; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $544,159.		500,000		500,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,007,513; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $1,020,000.		1,000,000		1,000,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $7,341,919; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $7,487,426.		7,340,614		7,340,614

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (d)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $4,634,561; collateralized by various Common Stock with an aggregate market value of $5,060,000.		4,600,000	$	4,600,000
NBC Global Finance, Ltd.
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $20,002,844; collateralized by various Common Stock with an aggregate market value of $22,264,245.		20,000,000		20,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $4,000,569; collateralized by various Common Stock with an aggregate market value of $4,452,849.		4,000,000		4,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $2,001,007; collateralized by various Common Stock with an aggregate market value of $2,226,644.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.590%, due on 01/07/19 with a maturity value of $1,500,755; collateralized by various Common Stock with an aggregate market value of $1,669,983.		1,500,000		1,500,000
Societe Generale
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $3,000,422; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $3,286,428.		3,000,000		3,000,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $3,500,492; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $3,834,166.		3,500,000		3,500,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $5,000,703; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $5,477,379.		5,000,000		5,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $11,705,824; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $12,817,068.		11,700,000		11,700,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $1,000,498; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,095,476.		1,000,000		1,000,000
Repurchase Agreements—(Continued)
Societe Generale
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $2,201,095; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $2,410,047.		2,200,000		2,200,000
				80,340,614
Time Deposit—0.0%
Royal Bank of Canada 2.420%, 01/02/19		600,000		600,000
Total Securities Lending Reinvestments (Cost $224,361,046)				224,336,981
Total Investments—118.8% (Cost $1,250,640,370)				1,430,305,195
Other assets and liabilities (net)—(18.8)%				(226,212,510	)
Net Assets—100.0%			$	1,204,092,685

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $220,744,967 and the collateral received consisted of cash in the amount of $224,267,346 andnon-cash collateral with a value of $640,982. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe- keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c)	Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(d)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(e)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Total Common Stocks*	$	1,196,612,648	$	—		$	—	$	1,196,612,648
Total Short-Term Investment*		9,355,566		—			—		9,355,566
Total Securities Lending Reinvestments*		—		224,336,981			—		224,336,981
Total Investments	$	1,205,968,214	$	224,336,981		$	—	$	1,430,305,195
Collateral for Securities Loaned (Liability)	$	—	$	(224,267,346	)	$	—	$	(224,267,346	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,420,949,629
Affiliated investments at value (c)		9,355,566
Cash denominated in foreign currencies (d)		3,407
Receivable for:
Investments sold		95,549
Fund shares sold		610,863
Dividends		603,989
Dividends on affiliated investments		23,217
Prepaid expenses		3,946
Total Assets		1,431,646,166
Liabilities
Due to custodian		95,549
Collateral for securities loaned		224,267,346
Payables for:
Affiliated investments purchased		22,773
Investments purchased		2,085,181
Fund shares redeemed		230,396
Accrued Expenses:
Management fees		473,382
Distribution and service fees		80,041
Deferred trustees’ fees		111,915
Other expenses		186,898
Total Liabilities		227,553,481
Net Assets	$	1,204,092,685
Net Assets Consist of:
Paid in surplus	$	834,965,244
Distributable earnings (Accumulated losses)		369,127,441
Net Assets	$	1,204,092,685
Net Assets
Class A	$	834,281,822
Class B		352,266,765
Class E		14,031,556
Class G		3,512,542
Capital Shares Outstanding*
Class A		39,300,277
Class B		17,871,499
Class E		694,092
Class G		184,933
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	21.23
Class B		19.71
Class E		20.22
Class G		18.99

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments, excluding affiliated investments, was $1,241,284,804.
(b)	Includes securities loaned at value of $220,744,967.
(c)	Identified cost of affiliated investments was $9,355,566.
(d)	Identified cost of cash denominated in foreign currencies was $3,484.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	8,179,545
Dividends from affiliated investments		204,748
Securities lending income		575,100
Total investment income		8,959,393
Expenses
Management fees		6,727,995
Administration fees		53,660
Custodian and accounting fees		103,985
Distribution and service fees—Class B		1,054,051
Distribution and service fees—Class E		26,553
Distribution and service fees—Class G		12,099
Audit and tax services		44,663
Legal		45,316
Trustees’ fees and expenses		33,733
Shareholder reporting		124,744
Insurance		9,216
Miscellaneous		24,807
Total expenses		8,260,822
Less management fee waiver		(320,470	)
Less broker commission recapture		(1,672	)
Net expenses		7,938,680
Net Investment Income		1,020,713
Net Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments		190,773,840
Foreign currency transactions		73
Net realized gain		190,773,913
Net change in unrealized depreciation on:
Investments		(264,044,607	)
Foreign currency transactions		(155	)
Net change in unrealized depreciation		(264,044,762	)
Net realized and unrealized loss		(73,270,849	)
Net Decrease in Net Assets From Operations	$	(72,250,136	)

(a) Net of foreign withholding taxes of $8,660.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	1,020,713		$	1,768,261
Net realized gain		190,773,913			120,975,147
Net change in unrealized appreciation (depreciation)		(264,044,762	)		160,653,464
Increase (decrease) in net assets from operations		(72,250,136	)		283,396,872
From Distributions to Shareholders (a)
Class A		(83,516,803	)		(60,151,464	)
Class B		(36,922,286	)		(25,824,286	)
Class E		(1,510,258	)		(1,075,511	)
Class G		(364,458	)		(212,766	)
Total distributions		(122,313,805	)		(87,264,027	)
Decrease in net assets from capital share transactions		(60,639,608	)		(21,037,249	)
Total increase (decrease) in net assets		(255,203,549	)		175,095,596
Net Assets
Beginning of period		1,459,296,234			1,284,200,638
End of period	$	1,204,092,685		$	1,459,296,234	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		1,520,096		$	38,258,742			3,152,629		$	73,254,051
Reinvestments		3,352,742			83,516,803			2,702,222			60,151,464
Redemptions		(6,558,135	)		(167,183,822	)		(5,999,204	)		(138,365,134	)
Net decrease		(1,685,297	)	$	(45,408,277	)		(144,353	)	$	(4,959,619	)
Class B
Sales		1,005,380		$	22,853,336			1,199,386		$	25,662,257
Reinvestments		1,594,227			36,922,286			1,238,575			25,824,286
Redemptions		(3,168,692	)		(74,061,481	)		(3,128,573	)		(67,558,402	)
Net decrease		(569,085	)	$	(14,285,859	)		(690,612	)	$	(16,071,859	)
Class E
Sales		71,866		$	1,741,672			77,072		$	1,676,736
Reinvestments		63,617			1,510,258			50,493			1,075,511
Redemptions		(197,031	)		(4,658,868	)		(143,297	)		(3,150,668	)
Net decrease		(61,548	)	$	(1,406,938	)		(15,732	)	$	(398,421	)
Class G
Sales		36,386		$	837,282			25,130		$	520,617
Reinvestments		16,321			364,458			10,549			212,766
Redemptions		(33,293	)		(740,274	)		(16,462	)		(340,733	)
Net increase		19,414		$	461,466			19,217		$	392,650
Decrease derived from capital shares transactions				$	(60,639,608	)				$	(21,037,249	)

(a) Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were as follows.

	Distributions from net investment income:			Distributions from realized capital gains:
Class A	$	(3,089,972	)	$	(57,061,492	)
Class B		(294,924	)		(25,529,362	)
Class E		(30,190	)		(1,045,321	)
Class G		(613	)		(212,153	)

(b) As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $1,173,859 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	24.69		$	21.41		$	22.01		$	23.40		$	23.77
Income (Loss) from Investment Operations
Net investment income (a)		0.04			0.05			0.07	(b)		0.07			0.06
Net realized and unrealized gain (loss)		(1.34	)		4.70			2.20			0.71			1.35
Total income (loss) from investment operations		(1.30	)		4.75			2.27			0.78			1.41
Less Distributions
Distributions from net investment income		(0.03	)		(0.08	)		(0.06	)		(0.03	)		(0.00	)(c)
Distributions from net realized capital gains		(2.13	)		(1.39	)		(2.81	)		(2.14	)		(1.78	)
Total distributions		(2.16	)		(1.47	)		(2.87	)		(2.17	)		(1.78	)
Net Asset Value, End of Period	$	21.23		$	24.69		$	21.41		$	22.01		$	23.40
Total Return (%) (d)		(6.55	)		22.88			11.74			2.71			6.91
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.50			0.50			0.50			0.50			0.51
Net ratio of expenses to average net assets (%) (e)		0.48			0.48			0.48			0.48			0.48
Ratio of net investment income to average net assets (%)		0.15			0.20			0.36	(b)		0.28			0.25
Portfolio turnover rate (%)		21			22			22			27			25
Net assets, end of period (in millions)	$	834.3		$	1,011.9		$	880.8		$	863.6		$	938.5
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	23.09		$	20.11		$	20.84		$	22.28		$	22.77
Income (Loss) from Investment Operations
Net investment income (loss) (a)		(0.02	)		(0.01	)		0.02	(b)		0.01			(0.00	)(f)
Net realized and unrealized gain (loss)		(1.23	)		4.40			2.07			0.69			1.29
Total income (loss) from investment operations		(1.25	)		4.39			2.09			0.70			1.29
Less Distributions
Distributions from net investment income		0.00			(0.02	)		(0.01	)		0.00			0.00
Distributions from net realized capital gains		(2.13	)		(1.39	)		(2.81	)		(2.14	)		(1.78	)
Total distributions		(2.13	)		(1.41	)		(2.82	)		(2.14	)		(1.78	)
Net Asset Value, End of Period	$	19.71		$	23.09		$	20.11		$	20.84		$	22.28
Total Return (%) (d)		(6.78	)		22.53			11.48			2.46			6.65
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.75			0.75			0.75			0.75			0.76
Net ratio of expenses to average net assets (%) (e)		0.73			0.73			0.73			0.73			0.73
Ratio of net investment income (loss) to average net assets (%)		(0.10	)		(0.05	)		0.11	(b)		0.03			(0.01	)
Portfolio turnover rate (%)		21			22			22			27			25
Net assets, end of period (in millions)	$	352.3		$	425.8		$	384.7		$	373.4		$	369.6

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	23.61		$	20.54		$	21.23		$	22.63		$	23.09
Income (Loss) from Investment Operations
Net investment income (loss) (a)		(0.00	) (f)		0.01			0.04	(b)		0.03			0.02
Net realized and unrealized gain (loss)		(1.26	)		4.49			2.11			0.71			1.30
Total income (loss) from investment operations		(1.26	)		4.50			2.15			0.74			1.32
Less Distributions
Distributions from net investment income		0.00			(0.04	)		(0.03	)		0.00			0.00
Distributions from net realized capital gains		(2.13	)		(1.39	)		(2.81	)		(2.14	)		(1.78	)
Total distributions		(2.13	)		(1.43	)		(2.84	)		(2.14	)		(1.78	)
Net Asset Value, End of Period	$	20.22		$	23.61		$	20.54		$	21.23		$	22.63
Total Return (%) (d)		(6.67	)		22.70			11.55			2.61			6.69
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.65			0.65			0.65			0.65			0.66
Net ratio of expenses to average net assets (%) (e)		0.63			0.63			0.63			0.63			0.63
Ratio of net investment income to average net assets (%)		(0.00	) (g)		0.05			0.21	(b)		0.12			0.09
Portfolio turnover rate (%)		21			22			22			27			25
Net assets, end of period (in millions)	$	14.0		$	17.8		$	15.8		$	16.9		$	17.1
	Class G
	Year Ended December 31,
	2018			2017			2016			2015			2014(h)
Net Asset Value, Beginning of Period	$	22.33		$	19.49		$	20.34		$	21.78		$	21.49
Income (Loss) from Investment Operations
Net investment income (loss) (a)		(0.03	)		(0.02	)		0.02	(b)		(0.01	)		0.01
Net realized and unrealized gain (loss)		(1.18	)		4.25			1.94			0.71			0.28
Total income (loss) from investment operations		(1.21	)		4.23			1.96			0.70			0.29
Less Distributions
Distributions from net investment income		0.00			(0.00	)(c)		0.00			0.00			0.00
Distributions from net realized capital gains		(2.13	)		(1.39	)		(2.81	)		(2.14	)		0.00
Total distributions		(2.13	)		(1.39	)		(2.81	)		(2.14	)		0.00
Net Asset Value, End of Period	$	18.99		$	22.33		$	19.49		$	20.34		$	21.78
Total Return (%) (d)		(6.84	)		22.46			11.14			2.51			1.35	(i)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.80			0.80			0.80			0.80			0.83	(j)
Net ratio of expenses to average net assets (%) (e)		0.78			0.78			0.78			0.78			0.81	(j)
Ratio of net investment income (loss) to average net assets (%)		(0.15	)		(0.10	)		0.08	(b)		(0.06	)		0.40	(j)
Portfolio turnover rate (%)		21			22			22			27			25
Net assets, end of period (in millions)	$	3.5		$	3.7		$	2.9		$	1.2		$	0.0	(k)

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.02% of average net assets, respectively.
(c)	Distributions from net investment income were less than $0.01.
(d)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(f)	Net investment income (loss) was less than $0.01.
(g)	Ratio of net investment loss to average net assets was less than 0.01%.
(h)	Commencement of operations was November 12, 2014.
(i)	Periods less than one year are not computed on an annualized basis.
(j)	Computed on an annualized basis.
(k)	Net assets, end of period rounds to less than $0.1 million.

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is T. Rowe Price Small Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-16

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-17

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Due to Custodian - Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans (currently, the federal funds rate plus 2%). This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio’s assets to the extent of any overdraft. At December 31, 2018, the Portfolio had a payment of $95,549 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2018. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2018. The Portfolio’s average overdraft advances during the year ended December 31, 2018 were not significant.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $80,340,614. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

BHFTII-18

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	299,788,408	$	0	$	479,980,338

The Portfolio engaged in security transactions with other accounts managed by T. Rowe Price Associates, Inc., the subadviser to the Portfolio, that amounted to $151,734 in sales of investments, which are included above, and resulted in realized losses of $88,828.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$6,727,995		0.550	%	Of the first $100 million
		0.500	%	Of the next $300 million
		0.450	%	On amounts in excess of $400 million

BHFTII-19

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. T. Rowe Price Associates, Inc. (“T. Rowe Price”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waivers - T. Rowe Price agreed to a voluntary subadvisory fee waiver that applies if (i) assets under management by T. Rowe Price for the Trust and Brighthouse Funds Trust I (“BHFTI”), an affiliate of the Trust, in the aggregate, exceed $750 million (ii) T. Rowe Price subadvises three or more portfolios of the Trust and BHFTI in the aggregate, and (iii) at least one of those portfolios is a large cap domestic equity portfolio.

If the aforementioned conditions are met, the Subadviser will waive its subadvisory fee paid by Brighthouse Investment Advisers by 5% for combined Trust and BHFTI average daily net assets over $750 million, 7.5% for the next $1.5 billion of combined assets, and 10% for amounts over $3 billion. Brighthouse Investment Advisers has voluntarily agreed to reduce its advisory fee for the Portfolio by the amount waived (if any) by T. Rowe Price for the Portfolio pursuant to this voluntary subadvisory fee waiver. Because these fee waivers are voluntary, and not contractual, they may be discontinued by T. Rowe Price and Brighthouse Investment Advisers at any time. Amounts waived for the year ended December 31, 2018 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B, Class E and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B, Class E and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.15% of average daily net assets in the case of Class E shares and 0.30% of average daily net assets in the case of Class G shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the year ended December 31, 2018 is as follows:

Security Description	Market Value December 31, 2017		Purchases		Sales			Ending Value as of December 31, 2018		Income earned from affiliates during the period		Number of shares held at December 31, 2018
T. Rowe Price Government Reserve Fund	$	4,409,313	$	204,505,186	$	(199,558,933	)	$	9,355,566	$	204,748		9,355,566

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-20

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,251,817,168
Gross unrealized appreciation		293,571,394
Gross unrealized depreciation		(115,083,367	)
Net unrealized appreciation (depreciation)	$	178,488,027

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$8,411,704	$	3,415,699	$	113,902,101	$	83,848,328	$	122,313,805	$	87,264,027

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Appreciation		Accumulated Capital Losses		Total
$4,856,293	$	185,895,114	$	178,487,950	$	—	$	369,239,357

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had no accumulated capital losses.

9. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-21

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of T. Rowe Price Small Cap Growth Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the T. Rowe Price Small Cap Growth Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the T. Rowe Price Small Cap Growth Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-22

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-23

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-24

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-25

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-26

Brighthouse Funds Trust II

T. Rowe Price Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

T. Rowe Price Small Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and T. Rowe Price Associates, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the three-year and five-year periods ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018. The Board also considered that the Portfolio outperformed its benchmark, the MSCI U.S. Small Cap Growth Index, for theone-, three- and five-year periods ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the median of the Expense Group, Expense Universe, andSub-advised Expense Universe, and were the lowest in the Expense Group and theSub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-27

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Managed by VanEck Associates Corporation

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A and B shares of the Van Eck Global Natural Resources Portfolio returned-28.64% and-28.85%, respectively. The Portfolio’s benchmark, the Standard & Poor’s (“S&P”) North American Natural Resources Sector Index¹, returned-21.07%.

MARKET ENVIRONMENT / CONDITIONS

During the reporting period, the most significant impact on the natural resources market and the Portfolio came from the combination of the escalating global trade disputes and the specter of rising of interest rates by the U.S. Federal Reserve (the “Fed”).

At the start of 2018, the prospects for both the natural resources market and the Portfolio looked encouraging. The benefits (for example from tax cuts and lower regulation) from the first two years of President Trump’s administration were continuing to flow through and, while maybe not constituting a strong tailwind, they were certainly positive. Natural resources stocks looked cheap on a relative basis, and, in many cases, also an absolute basis. Expectations were that commodity prices were going to be “OK” to “good” and, at minimum, there were going to be upward earnings revisions based on these.

Most exceptionally, natural resources companies accelerated their focus on returns and margins. In our opinion, industry fundamentals were excellent: balance sheets were strong and returns were improving, as was the visibility and extent of both free cash flow generation and its return to shareholders.

By year end, however, all such hopes had been thoroughly confounded, killed by the twin “evils” of trade disputes and Fed policy. Concerns around trade had started first with the North American Free Trade Agreement (“NAFTA”), then touched on Europe, and, finally, moved to China, where things became really bad. Matters were only compounded by the Fed raising rates and, consequently, the U.S. dollar strengthening. The result for the two growth engines of the world economy was: 1) the market started to price in slower U.S. growth (a result of the Fed’s actions); and 2) trade tariffs started to slow down growth in China.

Although crude oil prices had been pretty resilient for most of the year, in its last six weeks or so, in a confluence of events, the bottom fell totally out of the market. These events included continuing exhortations by President Trump for Saudi Arabia to pump more oil, the egregious demise of Jamal Khashoggi, the continued liquidation (after February 2018) of massive speculative long positions in oil and, not least, crude oil production by the U.S., Saudi Arabia, and Russia, the three largest producers in the world, reachingall-time highs.

During the year, the Fed’s interest rate hikes and a strengthening U.S. dollar resulted in weaker gold prices, with gold equities following suit. In the last quarter of the year, however, as the equity markets experienced increasing turmoil, investors rediscovered gold’s safe haven identity and the metal ended the year down only some 1.6%.

Trade concerns, together with fears around Chinese growth prospects and the impact on ultimate consumption (China remains the world’s largest consumer of base metals), hurt mining companies. While bulks (coal and iron ore) did not suffer as badly, base metals were negatively impacted, with copper falling approximately 20%.

Grains—soybeans and corn in particular—were also hit hard by trade fears. And while fertilizer stocks held up until close to the end of the year, they, too, rolled over when the market started throwing every other natural resource stock out.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

Several of the key aspects that contributed to underperformance of the Portfolio relative to its primary benchmark were overweight positions and underperformance in the oil & gas exploration & production and oil & gas drillingsub-industries. The absence of any allocation to integrated oil & gas stocks led to underperformance relative to the benchmark over the reporting period.

The three weakest-contributingsub-industries to the Portfolio’s performance relative to the benchmark were oil & gas exploration & production, oil & gas drilling, and diversified metals & mining. The Portfolio’s three weakest-contributing companies were oil & gas exploration & production company Parsley Energy, Inc., oil & gas drilling companyPatterson-UTI Energy, Inc., and copper mining company First Quantum Minerals, Ltd. Parsley Energy andPatterson-UTI Energy both suffered from concerns about Permian Basin takeaway capacity bottlenecks and subsequent fears of lower drilling and oil field service activity. First Quantum Minerals was a victim of concerns around potential changes in mining royalty taxation in Zambia.

The Portfolio’s three strongest positive-contributing individual positions were oil & gas exploration & production company RSP Permian, Inc., now part of Concho Resources, Inc., solar energy company Sunrun, Inc. (electrical components & equipmentsub-industry) and gold mining company Barrick Gold Corp. As part of the continuing theme of consolidation amongst oil & gas exploration & production companies, RSP Permian was acquired by Concho. In the energy space, residential solar continues to mature as an asset base, and 2018 was a pivotal year in securitizing these lower-risk, longer-dated assets. Sunrun continued to be a leader in securing an attractive cost of capital amidst higher interest rates, and its outperformance this year was a reflection of this continued execution as well as achieving installation growth above market. Barrick Gold benefitted both from its merger deal with Randgold and the rise in gold prices during the last quarter of the year.

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Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Managed by VanEck Associates Corporation

Portfolio Manager Commentary*—(Continued)

The Portfolio’s largest purchases established new positions in steel company Vale S.A. and increased its position in oil & gas exploration & production company Concho Resources, Inc. On both an absolute and relative basis, the Portfolio increased its weightings to both the steel and fertilizers & agricultural chemicalssub-industries.

The Portfolio’s largest sales during the reporting period were the reductions of its positions in oil & gas equipment & services companies Schlumberger, Ltd. and Halliburton Co. On both an absolute and relative basis, the Portfolio decreased its weightings to both the oil & gas equipment & services and oil & gas drillingsub-industries.

As of December 31, 2018, the Portfolio had no allocation to the integrated oil & gassub-industry, making thatsub-industry a substantially underweight position relative to the benchmark. As of the same date, the Portfolio’s next most substantially underweight position was in the oil & gas storage & transportationsub-industry. The Portfolio also had an underweight position in the oil & gas refining & marketingsub-industry.

As of December 31, 2018, the Portfolio’s most substantially overweight positions relative to the benchmark were in the diversified metals & mining, fertilizers & agricultural chemicalssub-industries, and oil & gas exploration & production.

Shawn Reynolds

Charles Cameron

Portfolio Managers

Van Eck Associates Corporation

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

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Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

A $10,000 INVESTMENT COMPARED TO THE S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year		Since Inception2
Van Eck Global Natural Resources Portfolio
Class A		-28.64		-10.92		0.72		—
Class B		-28.85		-11.14		—		-0.43
S&P North American Natural Resources Sector Index		-21.07		-6.50		2.99		—

¹ The S&P North American Natural Resources Sector Index was developed as an equity benchmark for U.S. traded natural resource related stocks.

² Inception dates of the Class A and Class B shares are 10/31/08 and 4/28/09, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Holdings

	% of Net Assets
Teck Resources, Ltd.- Class B		5.2
Diamondback Energy, Inc.		5.1
Glencore plc		4.7
Concho Resources, Inc.		4.5
EOG Resources, Inc.		4.4
Pioneer Natural Resources Co.		4.3
CF Industries Holdings, Inc.		3.9
Nutrien, Ltd.		3.7
First Quantum Minerals, Ltd.		3.4
Parsley Energy, Inc.- Class A		3.0

Top Sectors

	% of Net Assets
Energy		43.3
Materials		42.9
Consumer Staples		2.9
Industrials		2.6
Real Estate		1.4
Information Technology		1.4
Utilities		0.6

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Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Van Eck Global Natural Resources Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.80	%	$	1,000.00	$	718.40	$	3.47
	Hypothetical*		0.80	%	$	1,000.00	$	1,021.17	$	4.08
Class B (a)	Actual		1.05	%	$	1,000.00	$	718.20	$	4.55
	Hypothetical*		1.05	%	$	1,000.00	$	1,019.91	$	5.35

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

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Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Schedule of Investments as of December 31, 2018

Common Stocks—95.1% of Net Assets

Security Description	Shares		Value
Chemicals—7.6%
CF Industries Holdings, Inc.		832,100	$	36,204,671
Nutrien, Ltd.		725,423		34,094,881
				70,299,552
Electrical Equipment—0.9%
Sunrun, Inc. (a) (b)		770,200		8,387,478
Energy Equipment & Services—7.0%
Halliburton Co. (b)		305,500		8,120,190
Nabors Industries, Ltd. (b)		1,926,200		3,852,400
Patterson-UTI Energy, Inc. (b)		1,676,000		17,346,600
ProPetro Holding Corp. (a) (b)		1,320,700		16,271,024
Schlumberger, Ltd.		187,300		6,757,784
Superior Energy Services, Inc. (a) (b)		814,200		2,727,570
Transocean, Ltd. (a) (b)		1,017,300		7,060,062
Weatherford International plc (a) (b)		5,005,800		2,798,242
				64,933,872
Equity Real Estate Investment Trusts—1.4%
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		674,543		12,850,044
Food Products—2.9%
Bunge, Ltd.		172,100		9,197,024
Tyson Foods, Inc. - Class A		338,700		18,086,580
				27,283,604
Independent Power and Renewable Electricity Producers—0.6%
Ormat Technologies, Inc. (b)		98,800		5,167,240
Marine—1.7%
Kirby Corp. (a) (b)		236,631		15,939,464
Metals & Mining—34.3%
Agnico Eagle Mines, Ltd. (U.S. Listed Shares)		674,333		27,243,053
Barrick Gold Corp. (b)		1,911,700		25,884,418
First Quantum Minerals, Ltd.		3,895,200		31,499,420
Glencore plc		11,827,157		43,622,817
Goldcorp, Inc.		540,500		5,296,900
IAMGOLD Corp. (a)		1,531,500		5,635,920
KAZ Minerals plc (b)		1,256,486		8,521,594
Kinross Gold Corp. (a) (b)		3,252,500		10,538,100
Newmont Mining Corp. (b)		805,900		27,924,435
Randgold Resources, Ltd. (ADR)		202,500		17,346,782
Rio Tinto plc (ADR) (b)		508,000		24,627,840
Steel Dynamics, Inc.		562,600		16,900,504
Teck Resources, Ltd. - Class B		2,249,600		48,456,384
Vale S.A. (ADR) (b)		1,871,600		24,686,404
				318,184,571
Oil, Gas & Consumable Fuels—36.3%
Anadarko Petroleum Corp.		192,800		8,452,352
Cimarex Energy Co. (b)		345,600		21,306,240
CNX Resources Corp. (a) (b)		1,601,300		18,286,846
Oil, Gas & Consumable Fuels—(Continued)
Concho Resources, Inc. (a)		402,629		41,386,235
Diamondback Energy, Inc.		513,206		47,574,196
Encana Corp.		1,272,400		7,354,472
EOG Resources, Inc. (b)		465,100		40,561,371
Golar LNG, Ltd. (b)		963,400		20,963,584
Green Plains, Inc. (b)		984,900		12,912,039
Newfield Exploration Co. (a)		795,500		11,662,030
Parsley Energy, Inc. - Class A (a)		1,762,400		28,163,152
PBF Energy, Inc. - Class A (b)		213,600		6,978,312
PDC Energy, Inc. (a)		548,800		16,332,288
Pioneer Natural Resources Co.		304,100		39,995,232
Scorpio Tankers, Inc.		2,103,800		3,702,688
WPX Energy, Inc. (a) (b)		1,014,600		11,515,710
				337,146,747
Paper & Forest Products—1.0%
Louisiana-Pacific Corp.		434,700		9,659,034
Semiconductors & Semiconductor Equipment—1.4%
SolarEdge Technologies, Inc. (a) (b)		365,600		12,832,560
Total Common Stocks (Cost $1,067,136,966)				882,684,166
Short-Term Investment—4.8%
Mutual Fund—4.8%
AIM STIT-STIC Prime Portfolio		44,814,921		44,814,921
Total Short-Term Investments (Cost $44,814,921)				44,814,921
Securities Lending Reinvestments (c)—19.6%
Certificates of Deposit—12.9%
Banco Del Estado De Chile New York 2.720%, 1M LIBOR + 0.250%, 03/20/19 (d)		2,000,000		1,999,828
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (d)		5,000,000		4,999,875
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (d)		3,000,000		2,999,998
Barclays Bank plc
2.500%, 02/01/19		1,000,000		999,871
2.547%, 1M LIBOR + 0.200%, 02/04/19 (d)		2,500,000		2,499,762
Canadian Imperial Bank of Commerce
2.556%, 3M LIBOR + 0.120%, 01/14/19 (d)		2,000,000		1,999,744
2.740%, 1M LIBOR + 0.270%, 07/19/19 (d)		3,000,000		2,998,782
China Construction Bank Corp. 2.550%, 01/07/19		2,000,000		2,000,000
Citibank N.A. 2.490%, 02/04/19		4,000,000		3,999,444
Commonwealth Bank of Australia
2.617%, 3M LIBOR + 0.140%, 04/23/19 (d)		2,000,000		2,000,006
2.642%, 1M LIBOR + 0.210%, 09/13/19 (d)		4,000,000		4,000,000

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (c)—(Continued)

Security Description	Principal Amount*		Value
Certificates of Deposit—(Continued)
Cooperative Rabobank UA 2.608%, 3M LIBOR + 0.200%, 04/05/19 (d)		1,000,000	$	1,000,314
Credit Agricole S.A. 2.500%, 02/12/19		6,000,000		5,998,980
Credit Industriel et Commercial Zero Coupon, 01/25/19		6,342,941		6,414,077
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		2,000,000		1,999,852
Mitsubishi UFJ Trust and Banking Corp.
Zero Coupon, 01/15/19		1,984,975		1,997,960
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (d)		2,000,000		2,000,012
Natixis New York
2.731%, 3M LIBOR + 0.190%, 02/01/19 (d)		2,500,000		2,499,440
2.810%, 1M LIBOR + 0.370%, 02/14/19 (d)		3,000,000		3,000,561
Royal Bank of Canada New York
2.650%, 1M LIBOR + 0.250%, 01/11/19 (d)		5,500,000		5,500,044
2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		5,000,000		4,994,885
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (d)		6,000,000		5,999,508
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (d)		2,000,000		1,999,112
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (d)		7,000,000		6,999,797
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (d)		5,000,000		4,999,900
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (d)		6,000,000		5,997,798
Sumitomo Mitsui Banking Corp., New York
2.559%, 1M LIBOR + 0.180%, 03/05/19 (d)		2,000,000		1,999,526
2.665%, 1M LIBOR + 0.210%, 05/17/19 (d)		4,000,000		3,998,320
Svenska Handelsbanken AB
2.620%, 3M LIBOR + 0.100%, 04/30/19 (d)		1,500,000		1,499,933
2.822%, 1M LIBOR + 0.300%, 10/31/19 (d)		2,000,000		1,999,532
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (d)		2,000,000		1,998,096
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (d)		1,000,000		1,000,000
Wells Fargo Bank N.A.
2.560%, 3M LIBOR + 0.140%, 07/11/19 (d)		8,500,000		8,507,373
2.730%, 3M LIBOR + 0.210%, 10/25/19 (d)		3,000,000		3,000,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (d)		3,500,000		3,499,978
				119,402,308
Commercial Paper—3.8%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (d)		2,000,000		1,999,446
Banco Santander S.A. 2.740%, 02/07/19		2,978,993		2,991,264
Bank of China, Ltd. 2.690%, 01/17/19		4,966,375		4,994,130
ING Funding LLC 2.707%, 1M LIBOR + 0.320%, 02/08/19 (d)		7,000,000		7,000,651
Commercial Paper—(Continued)
Matchpoint Finance plc 2.890%, 05/08/19		2,956,409		2,967,759
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (d)		5,000,000		4,999,450
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (d)		5,000,000		5,001,225
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (d)		5,000,000		4,999,800
				34,953,725
Repurchase Agreements—2.9%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $10,076,667; collateralized by various Common Stock with an aggregate market value of $11,001,834.		10,000,000		10,000,000
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $2,005,425; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $2,176,637.		2,000,000	$	2,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $1,007,513; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $1,020,000.		1,000,000		1,000,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $4,051,922; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $4,132,226.		4,051,202		4,051,202
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $806,011; collateralized by various Common Stock with an aggregate market value of $880,000.		800,000		800,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $4,030,053; collateralized by various Common Stock with an aggregate market value of $4,400,000.		4,000,000		4,000,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $5,000,711; collateralized by various Common Stock with an aggregate market value of $5,566,061.		5,000,000		5,000,000
				26,851,202
Total Securities Lending Reinvestments (Cost $181,219,929)				181,207,235
Total Investments—119.5% (Cost $1,293,171,816)				1,108,706,322
Other assets and liabilities (net)—(19.5)%				(180,563,203	)
Net Assets—100.0%			$	928,143,119

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Schedule of Investments as of December 31, 2018

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	Non-income producing security.
(b)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $179,368,198 and the collateral received consisted of cash in the amount of $181,080,895 andnon-cash collateral with a value of $1,373,206. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(d)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(ADR)—	American Depositary Receipt
(FEDEFF PRV)—	Effective Federal Funds Rate
(LIBOR)—	London Interbank Offered Rate
(SOFR)—	Secured Overnight Financing Rate

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2			Level 3		Total
Common Stocks
Chemicals	$	70,299,552	$	—		$	—	$	70,299,552
Electrical Equipment		8,387,478		—			—		8,387,478
Energy Equipment & Services		64,933,872		—			—		64,933,872
Equity Real Estate Investment Trusts		12,850,044		—			—		12,850,044
Food Products		27,283,604		—			—		27,283,604
Independent Power and Renewable Electricity Producers		5,167,240		—			—		5,167,240
Marine		15,939,464		—			—		15,939,464
Metals & Mining		266,040,160		52,144,411			—		318,184,571
Oil, Gas & Consumable Fuels		337,146,747		—			—		337,146,747
Paper & Forest Products		9,659,034		—			—		9,659,034
Semiconductors & Semiconductor Equipment		12,832,560		—			—		12,832,560
Total Common Stocks		830,539,755		52,144,411			—		882,684,166
Total Short-Term Investment*		44,814,921		—			—		44,814,921
Total Securities Lending Reinvestments*		—		181,207,235			—		181,207,235
Total Investments	$	875,354,676	$	233,351,646		$	—	$	1,108,706,322
Collateral for Securities Loaned (Liability)	$	—	$	(181,080,895	)	$	—	$	(181,080,895	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	1,108,706,322
Cash		226,302
Receivable for:
Fund shares sold		242,077
Dividends		1,010,758
Prepaid expenses		3,508
Total Assets		1,110,188,967
Liabilities
Collateral for securities loaned		181,080,895
Payables for:
Fund shares redeemed		67,258
Accrued Expenses:
Management fees		626,816
Distribution and service fees		19,507
Deferred trustees’ fees		110,571
Other expenses		140,801
Total Liabilities		182,045,848
Net Assets	$	928,143,119
Net Assets Consist of:
Paid in surplus	$	1,405,833,308
Distributable earnings (Accumulated losses)		(477,690,189	)
Net Assets	$	928,143,119
Net Assets
Class A	$	837,846,836
Class B		90,296,283
Capital Shares Outstanding*
Class A		109,018,898
Class B		11,844,024
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	7.69
Class B		7.62

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $1,293,171,816.
(b)	Includes securities loaned at value of $179,368,198.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends (a)	$	14,872,600
Securities lending income		1,058,372
Total investment income		15,930,972
Expenses
Management fees		8,748,613
Administration fees		43,633
Custodian and accounting fees		87,040
Distribution and service fees—Class B		288,128
Audit and tax services		54,287
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		39,550
Insurance		7,001
Miscellaneous		22,623
Total expenses		9,369,926
Less management fee waiver		(124,002	)
Less broker commission recapture		(16,260	)
Net expenses		9,229,664
Net Investment Income		6,701,308
Net Realized and Unrealized Loss
Net realized gain (loss) on:
Investments		(16,814,891	)
Foreign currency transactions		79,346
Net realized loss		(16,735,545	)
Net change in unrealized appreciation (depreciation) on:
Investments		(357,973,840	)
Foreign currency transactions		344
Net change in unrealized depreciation		(357,973,496	)
Net realized and unrealized loss		(374,709,041	)
Net Decrease in Net Assets From Operations	$	(368,007,733	)

(a) Net of foreign withholding taxes of $433,154.

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	6,701,308		$	1,817,448
Net realized loss		(16,735,545	)		(11,881,461	)
Net change in unrealized appreciation (depreciation)		(357,973,496	)		23,318,938
Increase (decrease) in net assets from operations		(368,007,733	)		13,254,925
From Distributions to Shareholders (a)
Class A		(1,880,391	)		(973,863	)
Total distributions		(1,880,391	)		(973,863	)
Increase in net assets from capital share transactions		171,892,775			65,486,891
Total increase (decrease) in net assets		(197,995,349	)		77,767,953
Net Assets
Beginning of period		1,126,138,468			1,048,370,515
End of period	$	928,143,119		$	1,126,138,468	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		23,910,325		$	256,984,733			16,577,609		$	159,198,096
Reinvestments		172,989			1,880,391			108,448			973,863
Redemptions		(7,021,786	)		(77,293,969	)		(9,125,652	)		(96,618,555	)
Net increase		17,061,528		$	181,571,155			7,560,405		$	63,553,404
Class B
Sales		1,564,092		$	14,328,102			2,671,393		$	25,673,875
Redemptions		(2,277,179	)		(24,006,482	)		(2,365,074	)		(23,740,388	)
Net increase (decrease)		(713,087	)	$	(9,678,380	)		306,319		$	1,933,487
Increase derived from capital shares transactions				$	171,892,775					$	65,486,891

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 8). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $1,429,586 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.78		$	10.86		$	7.59		$	11.32		$	14.21
Income (Loss) from Investment Operations
Net investment income (a)		0.06			0.02			0.01			0.08			0.08
Net realized and unrealized gain (loss)		(3.13	)		(0.09	)		3.34			(3.76	)		(2.66	)
Total income (loss) from investment operations		(3.07	)		(0.07	)		3.35			(3.68	)		(2.58	)
Less Distributions
Distributions from net investment income		(0.02	)		(0.01	)		(0.08	)		(0.05	)		(0.08	)
Distributions from net realized capital gains		0.00			0.00			0.00			0.00			(0.23	)
Total distributions		(0.02	)		(0.01	)		(0.08	)		(0.05	)		(0.31	)
Net Asset Value, End of Period	$	7.69		$	10.78		$	10.86		$	7.59		$	11.32
Total Return (%) (b)		(28.64	)		(0.62	)		44.26			(32.64	)		(18.63	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.81			0.81			0.81			0.81			0.81
Net ratio of expenses to average net assets (%) (c)		0.80			0.80			0.80			0.80			0.80
Ratio of net investment income to average net assets (%)		0.62			0.21			0.14			0.82			0.56
Portfolio turnover rate (%)		24			23			49			25			39
Net assets, end of period (in millions)	$	837.8		$	991.7		$	916.2		$	752.1		$	841.0
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	10.71		$	10.79		$	7.55		$	11.25		$	14.12
Income (Loss) from Investment Operations
Net investment income (loss) (a)		0.04			(0.01	)		(0.01	)		0.06			0.04
Net realized and unrealized gain (loss)		(3.13	)		(0.07	)		3.31			(3.74	)		(2.64	)
Total income (loss) from investment operations		(3.09	)		(0.08	)		3.30			(3.68	)		(2.60	)
Less Distributions
Distributions from net investment income		0.00			0.00			(0.06	)		(0.02	)		(0.04	)
Distributions from net realized capital gains		0.00			0.00			0.00			0.00			(0.23	)
Total distributions		0.00			0.00			(0.06	)		(0.02	)		(0.27	)
Net Asset Value, End of Period	$	7.62		$	10.71		$	10.79		$	7.55		$	11.25
Total Return (%) (b)		(28.85	)		(0.74	)		43.74			(32.76	)		(18.82	)
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		1.06			1.06			1.06			1.06			1.06
Net ratio of expenses to average net assets (%) (c)		1.05			1.05			1.05			1.05			1.05
Ratio of net investment income (loss) to average net assets (%)		0.36			(0.05	)		(0.12	)		0.56			0.31
Portfolio turnover rate (%)		24			23			49			25			39
Net assets, end of period (in millions)	$	90.3		$	134.4		$	132.2		$	114.2		$	135.3

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Van Eck Global Natural Resources Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a

BHFTII-11

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

BHFTII-12

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Directed Brokerage Agreement -The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. (“CAPIS”). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $26,851,202. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2018, with a contractual maturity of overnight and continuous.

BHFTII-13

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Natural Resource and Foreign Investment Risk:The Portfolio may concentrate its investments in companies which are significantly engaged in the exploration, development, production and distribution of gold and other natural resources such as strategic and other metals, minerals, forest products, oil, natural gas and coal and by investing in gold bullion and coins. Since the Portfolio may concentrate its investments, it may be subject to greater risks and market fluctuations than other more diversified portfolios. The production and marketing of gold and other natural resources may be affected by actions and changes in governments. In addition, gold and natural resources may be cyclical in nature. In addition, the investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$0	$	400,103,797	$	0	$	257,759,139

During the year ended December 31, 2018, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $8,668,014 in purchases of investments, which are included above.

BHFTII-14

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$8,748,613		0.800	%	Of the first $250 million
		0.775	%	Of the next $750 million
		0.750	%	On amounts in excess of $1 billion

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Van Eck Associates Corporation (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.025%		On amounts over $500 million and under $1 billion

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

BHFTII-15

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

7. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	1,302,134,318
Gross unrealized appreciation		39,550,530
Gross unrealized depreciation		(232,978,526	)
Net unrealized appreciation (depreciation)	$	(193,427,996	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$1,880,391	$	973,863	$	—	$	—	$	1,880,391	$	973,863

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses			Total
$6,407,032	$	—	$	(193,427,996	)	$	(290,558,537	)	$	(477,579,501	)

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had accumulated short-term capital losses of $22,085,499, and accumulated long-term capital losses of $268,473,038.

8. Recent Accounting Pronouncements and SEC Update

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-16

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Van Eck Global Natural Resources Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Van Eck Global Natural Resources Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Van Eck Global Natural Resources Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-17

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-18

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-19

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-20

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-21

Brighthouse Funds Trust II

Van Eck Global Natural Resources Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Van Eck Global Natural Resources Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Van Eck Associates Corporation regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for the three-year and five-year periods ended June 30, 2018. The Board also considered that the Portfolio underperformed its benchmark, the S&P North American Natural Resources Sector Index, for theone-, three- and five-year periods ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median, and above theSub-advised Expense Universe median and the Expense Universe median. The Board further considered that the Portfolio’s total expenses (exclusive of12b-1 fees) were below the Expense Group median,Sub-advised Expense Universe median, and Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were above the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-22

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Managed by Western Asset Management Company

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Western Asset Management Strategic Bond Opportunities Portfolio returned-3.80%,-4.02%, and-3.92%, respectively. The Portfolio’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index¹, returned 0.01%.

MARKET ENVIRONMENT / CONDITIONS

Fixed income markets, in general, posted weak results over the twelve months ended December 31, 2018. Higher U.S. growth and inflation expectations caused U.S. Treasury yields to rise for most of the year, but muted inflation coupled with global slowdown and recession fears caused yields to fall during the final months. Spread sectors were similarly impacted by periods of elevated volatility as they performed well early in the year with initial solid economic growth forecasts and later saw spreads widen towards year end.

After hitting a high-water mark of 4.2% in the second quarter, the U.S. economy’s annualized gross domestic product (“GDP”) growth ticked down to 3.5% in the third quarter. The deceleration in GDP growth reflected a downturn in exports and decelerations in nonresidential fixed investment and personal consumption expenditures. The manufacturing sector continued to expand throughout the year, but the pace also moderated during the fourth quarter. The U.S. labor market remained tight throughout the year; the unemployment rate reached 3.7% in October and November, which equaled the lowest unemployment rate since 1969.

In December, the Federal Reserve (the “Fed”) raised interest rates for the fourth time in 2018, as was widely expected, to a target range between 2.25% and 2.50%. This increase marked the Fed’s ninth rate hike since December 2015. In a post-meeting statement, however, the Fed surprised market participants by retaining its forward guidance for “some further gradual increases” and only lowering its prediction from three hikes to two hikes in 2019. This messaging stood in contrast to the dovish approach that had seemingly been advocated by previous remarks from Fed Chair Jerome Powell and other members. Concerns over a potential Fed policy error added to the heightened market volatility experienced towards year end.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Western Asset Management Strategic Bond Opportunities Portfolio underperformed its benchmark over the reporting period.

The Portfolio’s performance was negatively impacted by its U.S. duration and yield curve positioning, as well as currency and emerging markets (“EM”) positions. U.S. Treasury yields fluctuated throughout the year, but ultimately ended the year higher across the curve. The Portfolio’s modest bias to long U.S. duration exposure had an overall significant negative impact on performance; however, the Portfolio’s tactical yield curve positioning, which included an underweight to the short end of the curve early in the year, had only a slight negative impact on performance.

Within currencies, the Portfolio was negatively impacted by its outright exposures to select EM currencies including the Argentine peso which declined 50.6% over the year; the Turkish lira, down 28.2% for the year; and the Brazilian real, which declined 14.6% over the year. However, the Portfolio did benefit from its meaningful euro short, which contributed positively to performance as the euro declined 4.5% over the year.

Over the course of the year, spread sectors experienced heightened levels of volatility, especially during the final months as the broader market witnessed a flight to quality. Corporate credit spreads widened from the beginning of the year to the end of year. The Portfolio’s overweight positioning to investment grade corporate credit bonds were negative contributors to relative performance in the period. While investment grade credit saw spreads trend wider for most of the year, by contrast, high yield bonds saw spreads tighten earlier in the year. For reference, the option adjusted spread of the Bloomberg Barclays U.S. Corporate High Yield Index moved from 343 basis points (“bps”) as of December 31, 2017 to 316 bps by the end of September 2018. Up until the fourth quarter, the Portfolio’s high yield corporate credit positions had a significant positive impact on performance. The dramatic spread widening witnessed in the fourth quarter led the Portfolio to give up nearly all of its positive performance from high yield. For the full12-month period, the Portfolio’s high yield corporate credit positions had a positive, but ultimately negligible, impact on performance.

Elsewhere, the Portfolio’s overweight exposures to structured product, were largely positive for performance as overall fundamentals for the sector remained solid throughout the year. Only late in the fourth quarter did some signs of softening in the U.S. housing market begin to have an impact on overall spread levels. In particular, the Portfolio’s legacynon-Agency Residential Mortgage-Backed Securities (“RMBS”) as well as single asset-single borrower Commercial Mortgage-Backed Securities (“CMBS”) performed relatively well in the period.

At period end, the Portfolio held overweight positions relative to the benchmark in both high yield and investment grade credits. During the year, the Portfolio’s exposure to investment grade credits

BHFTII-1

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Managed by Western Asset Management Company

Portfolio Manager Commentary*—(Continued)

increased, which reflected our fundamental view of a persistent economic recovery and growth stabilization. In addition, the Portfolio maintained overweight positions tonon-Agency RMBS, CMBS, and EM. Conversely, the Portfolio was underweight U.S Treasuries and Agency MBS. By year end, the Portfolio’s overall duration was 0.2 years short to the benchmark, with an underweight held at the10-year segment of the curve.

S. Kenneth Leech

Carl L. Eichsteadt

Mark S. Lindbloom

Michael Buchanan

Annabel Rudebeck

Portfolio Managers

Western Asset Management Company

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-2

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Western Asset Management Strategic Bond Opportunities Portfolio
Class A		-3.80		3.22		7.65
Class B		-4.02		2.97		7.38
Class E		-3.92		3.08		7.49
Bloomberg Barclays U.S. Aggregate Bond Index		0.01		2.52		3.48

¹ The Bloomberg Barclays U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Sectors
	% of Net Assets
Corporate Bonds & Notes		58.8
Mortgage-Backed Securities		9.0
Floating Rate Loans		8.6
Foreign Government		8.2
U.S. Treasury & Government Agencies		6.0
Asset-Backed Securities		5.3
Convertible Bonds		1.0
Purchased Options		0.5
Convertible Preferred Stocks		0.2
Municipals		0.1

BHFTII-3

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Western Asset Management Strategic Bond Opportunities Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.54	%	$	1,000.00	$	991.40	$	2.71
	Hypothetical*		0.54	%	$	1,000.00	$	1,022.48	$	2.75
Class B (a)	Actual		0.79	%	$	1,000.00	$	989.80	$	3.96
	Hypothetical*		0.79	%	$	1,000.00	$	1,021.22	$	4.02
Class E (a)	Actual		0.69	%	$	1,000.00	$	990.60	$	3.46
	Hypothetical*		0.69	%	$	1,000.00	$	1,021.73	$	3.52

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-4

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—58.8% of Net Assets

Security Description	Principal Amount*		Value
Aerospace/Defense—0.7%
Harris Corp.
4.854%, 04/27/35		350,000	$	347,587
5.054%, 04/27/45		1,089,000		1,121,664
Northrop Grumman Corp.
2.930%, 01/15/25		13,360,000		12,682,517
3.200%, 02/01/27		3,560,000		3,340,025
Raytheon Co. 3.125%, 10/15/20 (a)		30,000		30,088
United Technologies Corp.
4.125%, 11/16/28		4,700,000		4,666,941
4.500%, 06/01/42		290,000		273,580
				22,462,402
Agriculture—0.1%
Altria Group, Inc. 5.375%, 01/31/44		649,000		605,635
Reynolds American, Inc. 4.850%, 09/15/23		2,640,000		2,671,434
				3,277,069
Airlines—0.1%
Air Canada Pass-Through Trust 4.125%, 05/15/25 (144A)		628,261		622,544
American Airlines Pass-Through Trust 5.600%, 07/15/20 (144A)		978,908		986,250
Delta Air Lines Pass-Through Trust 4.950%, 05/23/19		73,513		73,917
Northwest Airlines Pass-Through Trust 7.575%, 03/01/19		1,531		1,516
				1,684,227
Apparel—0.5%
Hanesbrands, Inc. 4.875%, 05/15/26 (144A) (a)		14,688,000		13,237,560
Levi Strauss & Co. 5.000%, 05/01/25 (a)		2,345,000		2,292,237
				15,529,797
Auto Manufacturers—0.9%
Allison Transmission, Inc.
4.750%, 10/01/27 (144A)		3,650,000		3,248,500
5.000%, 10/01/24 (144A)		4,790,000		4,598,400
General Motors Co. 6.600%, 04/01/36 (a)		5,134,000		5,002,187
Jaguar Land Rover Automotive plc 4.500%, 10/01/27 (144A) (a)		8,860,000		6,600,700
JB Poindexter & Co., Inc. 7.125%, 04/15/26 (144A)		8,691,000		8,126,085
				27,575,872
Auto Parts & Equipment—0.3%
Adient Global Holdings, Ltd. 4.875%, 08/15/26 (144A)		200,000		153,000
Auto Parts & Equipment—(Continued)
Delphi Technologies plc
5.000%, 10/01/25 (144A)		4,210,000		3,543,725
IHO Verwaltungs GmbH
4.125%, PIK, 09/15/21 (144A) (a) (b)		1,840,000		1,748,000
4.500%, PIK, 09/15/23 (144A) (a) (b)		1,050,000		960,750
ZF North America Capital, Inc. 4.750%, 04/29/25 (144A)		4,153,000		3,866,677
				10,272,152
Banks—9.5%
ABN AMRO Bank NV 4.750%, 07/28/25 (144A)		321,000		319,376
Banco Bilbao Vizcaya Argentaria S.A. 7.000%, 5Y EUR Swap + 6.155%, 02/19/19 (EUR) (c)		8,800,000		10,055,334
Banco Mercantil del Norte S.A. 6.875%, 5Y CMT + 5.035%, 07/06/22 (144A) (c)		800,000		774,008
7.625%, 10Y CMT + 5.353%, 01/10/28 (144A) (c)		800,000		774,008
Banco Santander S.A. 3.800%, 02/23/28		400,000		355,998
3.848%, 04/12/23		9,800,000		9,521,747
Bank of America Corp. 4.000%, 01/22/25		16,110,000		15,700,015
4.250%, 10/22/26		7,628,000		7,422,787
Barclays Bank plc 7.625%, 11/21/22		16,450,000		17,046,312
Barclays plc 4.972%, 3M LIBOR + 1.902%, 05/16/29 (c)		4,990,000		4,814,020
7.750%, 5Y USD Swap + 4.842%, 09/15/23 (c)		3,650,000		3,511,008
BBVA Bancomer S.A. 5.125%, 5Y CMT + 2.650%, 01/18/33 (144A) (a) (c)		16,480,000		14,296,565
BNP Paribas S.A. 4.375%, 05/12/26 (144A)		7,680,000		7,394,235
7.625%, 5Y USD Swap + 6.314%, 03/30/21 (144A) (c)		2,850,000		2,903,437
BPCE S.A. 4.875%, 04/01/26 (144A) (a)		12,000,000		11,826,994
5.150%, 07/21/24 (144A)		420,000		421,710
CIT Group, Inc. 6.125%, 03/09/28 (a)		1,760,000		1,751,200
Citigroup, Inc. 4.050%, 07/30/22		110,000		110,495
4.450%, 09/29/27		11,094,000		10,697,315
Cooperative Rabobank UA 3.750%, 07/21/26		4,210,000		3,947,338
4.375%, 08/04/25		1,470,000		1,444,414
4.625%, 12/01/23		5,870,000		5,951,380
11.000%, 3M LIBOR + 10.868%, 06/30/19 (144A) (c)		415,000		428,488
Credit Agricole S.A. 7.875%, 5Y USD Swap + 4.898%, 01/23/24 (144A) (a) (c)		1,750,000		1,747,715
8.125%, 5Y USD Swap + 6.185%, 12/23/25 (144A) (a) (c)		7,050,000		7,243,875
8.375%, 3M LIBOR + 6.982%, 10/13/19 (144A) (c)		640,000		654,400

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Banks—(Continued)
Credit Suisse Group AG 7.250%, 5Y USD Swap + 4.332%, 09/12/25 (144A) (c)		650,000	$	613,178
7.500%, 5Y USD Swap + 4.600%, 07/17/23 (144A) (c)		3,390,000		3,305,250
7.500%, 5Y USD Swap + 4.598%, 12/11/23 (144A) (a) (c)		4,365,000		4,437,022
Goldman Sachs Group, Inc. (The) 3.500%, 11/16/26		2,920,000		2,698,485
4.000%, 03/03/24		1,510,000		1,489,925
4.250%, 10/21/25		8,890,000		8,517,147
5.250%, 07/27/21		1,330,000		1,380,608
6.750%, 10/01/37		2,000,000		2,260,783
HSBC Holdings plc 3.900%, 05/25/26		10,850,000		10,401,674
4.583%, 3M LIBOR + 1.535%, 06/19/29 (c)		2,650,000		2,628,343
6.000%, 5Y USD ICE Swap + 3.746%, 05/22/27 (a) (c)		4,430,000		3,989,126
6.250%, 5Y USD ICE Swap + 3.453%, 03/23/23 (c)		3,770,000		3,534,375
6.500%, 5Y USD ICE Swap + 3.606%, 03/23/28 (c)		3,770,000		3,425,987
Intesa Sanpaolo S.p.A. 3.125%, 07/14/22 (144A)		1,970,000		1,821,397
3.375%, 01/12/23 (144A)		1,900,000		1,759,970
3.875%, 07/14/27 (144A)		8,790,000		7,565,119
5.017%, 06/26/24 (144A)		2,440,000		2,207,852
5.710%, 01/15/26 (144A) (a)		19,740,000		18,103,180
6.500%, 02/24/21 (144A)		1,175,000		1,204,547
JPMorgan Chase & Co. 3.625%, 12/01/27		6,430,000		5,987,049
3.875%, 09/10/24		2,722,000		2,683,462
Lloyds Banking Group plc 4.582%, 12/10/25		3,011,000		2,851,823
4.650%, 03/24/26		3,920,000		3,687,275
7.500%, 5Y USD Swap + 4.760%, 06/27/24 (c)		3,580,000		3,453,984
Macquarie Group, Ltd. 6.000%, 01/14/20 (144A)		3,200,000		3,284,532
6.250%, 01/14/21 (144A)		400,000		419,630
Morgan Stanley 4.000%, 07/23/25		1,165,000		1,149,844
4.100%, 05/22/23		1,000,000		1,001,384
4.875%, 11/01/22		250,000		257,610
Royal Bank of Scotland Group plc 4.800%, 04/05/26		400,000		389,806
5.125%, 05/28/24		2,870,000		2,782,461
6.000%, 12/19/23		875,000		885,534
6.100%, 06/10/23		780,000		792,272
8.625%, 5Y USD Swap + 7.598%, 08/15/21 (c)		2,890,000		2,991,150
Santander Holdings USA, Inc. 4.500%, 07/17/25		570,000		564,608
Santander UK Group Holdings plc 4.750%, 09/15/25 (144A)		10,031,000		9,431,186
7.375%, 5Y GBP Swap + 5.543%, 06/24/22 (GBP) (c)		2,620,000		3,347,600
Santander UK plc 7.950%, 10/26/29 (a)		272,000		318,955
Banks—(Continued)
Standard Chartered plc
3.950%, 01/11/23 (144A)		2,425,000		2,365,589
5.700%, 03/26/44 (144A) (a)		600,000		601,114
UBS AG 7.625%, 08/17/22		2,850,000		3,035,250
UBS Group Funding Switzerland AG 4.253%, 03/23/28 (144A)		2,950,000		2,910,379
Wells Fargo & Co. 4.300%, 07/22/27		10,990,000		10,816,465
Wells Fargo Capital X 5.950%, 12/01/86		90,000		92,925
				288,560,029
Beverages—0.2%
Constellation Brands, Inc. 4.750%, 12/01/25		140,000		143,045
Cott Holdings, Inc. 5.500%, 04/01/25 (144A)		5,530,000		5,212,025
				5,355,070
Biotechnology—0.2%
Celgene Corp. 3.875%, 08/15/25		1,120,000		1,078,668
5.000%, 08/15/45		800,000		740,672
Gilead Sciences, Inc. 2.550%, 09/01/20		1,675,000		1,661,161
3.500%, 02/01/25		1,795,000		1,772,033
4.600%, 09/01/35		1,800,000		1,819,184
				7,071,718
Building Materials—0.3%
Standard Industries, Inc. 5.375%, 11/15/24 (144A)		8,710,000		8,176,513
6.000%, 10/15/25 (144A)		1,790,000		1,716,789
				9,893,302
Chemicals—0.2%
Monitchem HoldCo 2 S.A. 6.875%, 06/15/22 (EUR) (a)		3,104,000		2,843,205
Olin Corp. 5.000%, 02/01/30 (a)		3,250,000		2,847,813
				5,691,018
Commercial Services—1.4%
Ashtead Capital, Inc. 4.375%, 08/15/27 (144A) (a)		5,320,000		4,788,000
Brink’s Co. (The) 4.625%, 10/15/27 (144A) (a)		3,420,000		3,121,536
Carriage Services, Inc. 6.625%, 06/01/26 (144A)		5,500,000		5,390,000
FTI Consulting, Inc. 2.000%, 08/15/23 (144A)		4,190,000		3,993,594
Hertz Corp. (The) 5.875%, 10/15/20		4,760,000		4,617,200

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Commercial Services—(Continued)
Metropolitan Museum of Art (The) 3.400%, 07/01/45		2,025,000	$	1,911,498
Prime Security Services Borrower LLC / Prime Finance, Inc. 9.250%, 05/15/23 (144A) (a)		4,143,000		4,272,469
UBM plc 5.750%, 11/03/20 (144A)		50,000		51,197
United Rentals North America, Inc. 4.625%, 07/15/23 (a)		1,341,000		1,315,856
4.625%, 10/15/25		760,000		678,300
4.875%, 01/15/28 (a)		5,230,000		4,589,325
5.875%, 09/15/26 (a)		5,000,000		4,712,500
6.500%, 12/15/26 (a)		1,940,000		1,910,900
				41,352,375
Computers—0.4%
Dell International LLC / EMC Corp. 3.480%, 06/01/19 (144A)		1,000,000		997,048
4.420%, 06/15/21 (144A)		12,010,000		11,997,651
				12,994,699
Diversified Financial Services—2.1%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust 4.625%, 10/30/20		1,060,000		1,067,195
5.000%, 10/01/21		15,056,000		15,292,080
Ally Financial, Inc. 8.000%, 11/01/31		525,000		582,750
ASP AMC Merger Sub, Inc. 8.000%, 05/15/25 (144A) (a)		9,420,000		4,992,600
Carlyle Holdings II Finance LLC 5.625%, 03/30/43 (144A)		3,370,000		3,338,726
International Lease Finance Corp.
8.250%, 12/15/20		2,613,000		2,810,468
8.625%, 01/15/22		2,500,000		2,779,275
Jerrold Finco plc 6.125%, 01/15/24 (144A) (GBP)		1,780,000		2,178,195
KKR Group Finance Co. II LLC 5.500%, 02/01/43 (144A)		130,000		132,324
Lions Gate Capital Holdings LLC 5.875%, 11/01/24 (144A)		3,880,000		3,831,500
Navient Corp. 5.000%, 10/26/20 (a)		5,811,000		5,564,032
Quicken Loans, Inc.
5.250%, 01/15/28 (144A) (a)		1,050,000		929,250
5.750%, 05/01/25 (144A)		15,600,000		14,586,000
Travelport Corporate Finance plc 6.000%, 03/15/26 (144A)		3,238,000		3,270,380
Visa, Inc. 3.150%, 12/14/25		850,000		835,691
				62,190,466
Electric—1.6%
Enel S.p.A. 7.750%, 5Y GBP Swap + 5.662%, 09/10/75 (GBP) (c)		2,450,000		3,295,215
Electric—(Continued)
Exelon Corp. 3.497%, 06/01/22		4,800,000		4,690,315
FirstEnergy Corp. 3.900%, 07/15/27		6,480,000		6,279,622
4.250%, 03/15/23		1,560,000		1,584,872
7.375%, 11/15/31		3,550,000		4,488,706
NSG Holdings LLC / NSG Holdings, Inc. 7.750%, 12/15/25 (144A) (d) (e)		2,419,311		2,552,373
Pacific Gas & Electric Co. 2.950%, 03/01/26 (a)		1,020,000		839,039
3.250%, 09/15/21 (a)		4,853,000		4,469,694
3.250%, 06/15/23 (a)		730,000		645,760
3.500%, 10/01/20 (a)		8,840,000		8,421,960
Panoche Energy Center LLC 6.885%, 07/31/29 (144A)		642,184		662,922
Perusahaan Listrik Negara PT 5.500%, 11/22/21		9,750,000		10,054,687
Southern California Edison Co. 3.900%, 03/15/43		1,217,000		1,107,381
				49,092,546
Energy-Alternate Sources—0.1%
Alta Wind Holdings LLC 7.000%, 06/30/35 (144A) (d) (e)		1,268,181		1,377,360
Entertainment—0.7%
Downstream Development Authority of the Quapaw Tribe of Oklahoma 10.500%, 02/15/23 (144A)		985,000		970,225
Live Nation Entertainment, Inc. 2.500%, 03/15/23 (144A)		570,000		580,395
Scientific Games International, Inc. 10.000%, 12/01/22 (a)		14,360,000		14,539,356
Speedway Motorsports, Inc. 5.125%, 02/01/23 (a)		1,147,000		1,124,060
Vue International Bidco plc 7.875%, 07/15/20 (GBP)		2,510,000		3,147,258
				20,361,294
Environmental Control—0.0%
Waste Management, Inc. 3.500%, 05/15/24		890,000		889,081
4.600%, 03/01/21		180,000		185,534
7.375%, 05/15/29		190,000		234,920
				1,309,535
Food—0.3%
Kraft Heinz Foods Co. 3.000%, 06/01/26 (a)		340,000		303,462
3.950%, 07/15/25		60,000		58,091
5.000%, 07/15/35		250,000		235,026
5.000%, 06/04/42		130,000		116,391
5.200%, 07/15/45		390,000		356,809

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Food—(Continued)
Lamb Weston Holdings, Inc. 4.625%, 11/01/24 (144A) (a)		3,710,000	$	3,607,975
4.875%, 11/01/26 (144A) (a)		4,870,000		4,675,200
				9,352,954
Forest Products & Paper—0.1%
Suzano Austria GmbH 5.750%, 07/14/26		4,200,000		4,284,000
Healthcare-Products—0.6%
Becton Dickinson & Co. 3.700%, 06/06/27		8,580,000		8,111,339
Immucor, Inc. 11.125%, 02/15/22 (144A) (a)		7,080,000		7,080,000
Medtronic, Inc. 3.150%, 03/15/22 (a)		1,393,000		1,389,091
3.500%, 03/15/25 (a)		1,730,000		1,723,911
				18,304,341
Healthcare-Services—1.7%
Centene Corp. 5.375%, 06/01/26 (144A)		7,280,000		7,079,800
6.125%, 02/15/24		4,413,000		4,517,809
DaVita, Inc. 5.125%, 07/15/24 (a)		500,000		468,750
Fresenius Medical Care U.S. Finance II, Inc. 4.750%, 10/15/24 (144A)		700,000		712,810
HCA, Inc. 5.375%, 02/01/25 (a)		6,010,000		5,859,750
5.500%, 06/15/47 (a)		12,780,000		12,109,050
5.625%, 09/01/28 (a)		9,460,000		9,128,900
Humana, Inc. 4.800%, 03/15/47		800,000		801,711
RegionalCare Hospital Partners Holdings, Inc. 8.250%, 05/01/23 (144A)		4,513,000		4,558,130
Tenet Healthcare Corp. 7.500%, 01/01/22 (144A) (a)		2,490,000		2,527,350
8.125%, 04/01/22 (a)		4,255,000		4,265,637
				52,029,697
Holding Companies-Diversified—0.1%
Co-operative Group Holdings, Ltd. 7.500%, 07/08/26 (GBP) (f)		2,410,000		3,388,179
Home Builders—0.5%
Lennar Corp. 4.500%, 04/30/24		4,180,000		3,950,100
4.750%, 11/29/27 (a)		5,730,000		5,171,325
Taylor Morrison Communities, Inc. / Taylor Morrison Holdings II, Inc. 5.625%, 03/01/24 (144A) (a)		6,000,000		5,700,000
5.875%, 04/15/23 (144A) (a)		780,000		752,700
				15,574,125
Housewares—0.1%
Newell Brands, Inc. 3.850%, 04/01/23 (a)		1,750,000		1,724,254
Insurance—0.8%
Ambac Assurance Corp. 5.100%, 06/07/20 (144A)		20,207		26,875
Ambac LSNI LLC 7.803%, 3M LIBOR + 5.000%, 02/12/23 (144A) (c)		87,492		87,602
American International Group, Inc. 3.750%, 07/10/25		770,000		737,591
6.250%, 3M LIBOR + 2.056%, 03/15/87		453,000		437,145
AXA S.A. 8.600%, 12/15/30		1,320,000		1,632,959
Delphi Financial Group, Inc. 7.875%, 01/31/20		2,190,000		2,291,945
Fidelity & Guaranty Life Holdings, Inc. 5.500%, 05/01/25 (144A)		6,120,000		5,846,436
Liberty Mutual Insurance Co. 7.697%, 10/15/97 (144A)		2,600,000		3,514,570
Massachusetts Mutual Life Insurance Co. 4.900%, 04/01/77 (144A)		6,285,000		6,278,130
Prudential Financial, Inc. 5.625%, 3M LIBOR + 3.920%, 06/15/43 (c)		550,000		538,631
5.875%, 3M LIBOR + 4.175%, 09/15/42 (c)		1,200,000		1,212,000
Teachers Insurance & Annuity Association of America 4.900%, 09/15/44 (144A)		1,771,000		1,838,785
6.850%, 12/16/39 (144A)		216,000		281,153
				24,723,822
Internet—0.9%
Booking Holdings, Inc. 3.650%, 03/15/25		1,625,000		1,583,132
Cogent Communications Group, Inc. 5.375%, 03/01/22 (144A) (a)		6,333,000		6,285,502
Match Group, Inc. 5.000%, 12/15/27 (144A) (a)		920,000		844,100
6.375%, 06/01/24		4,725,000		4,807,688
Netflix, Inc. 6.375%, 05/15/29 (144A) (a)		6,500,000		6,410,625
Tencent Holdings, Ltd. 3.595%, 01/19/28 (144A)		8,110,000		7,624,375
				27,555,422
Iron/Steel—0.5%
Vale Overseas, Ltd. 6.250%, 08/10/26		3,990,000		4,309,200
6.875%, 11/10/39 (a)		7,980,000		9,216,900
				13,526,100
Leisure Time—0.9%
NCL Corp., Ltd. 4.750%, 12/15/21 (144A)		5,262,000		5,222,535
Silversea Cruise Finance, Ltd. 7.250%, 02/01/25 (144A)		5,285,000		5,587,302

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Leisure Time—(Continued)
Viking Cruises, Ltd. 5.875%, 09/15/27 (144A) (a)		11,372,000	$	10,604,390
VOC Escrow, Ltd. 5.000%, 02/15/28 (144A)		6,000,000		5,535,000
				26,949,227
Lodging—0.9%
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp. 4.625%, 04/01/25 (a)		1,250,000		1,184,375
4.875%, 04/01/27		11,970,000		11,221,875
Jack Ohio Finance LLC / Jack Ohio Finance 1 Corp. 10.250%, 11/15/22 (144A)		7,468,000		7,916,080
Sands China, Ltd. 5.125%, 08/08/25 (144A)		6,800,000		6,736,159
				27,058,489
Machinery-Diversified—0.2%
Cleaver-Brooks, Inc. 7.875%, 03/01/23 (144A)		4,350,000		4,197,750
MAI Holdings, Inc. 9.500%, 06/01/23		2,550,000		2,448,000
				6,645,750
Media—5.0%
Altice France S.A. 7.375%, 05/01/26 (144A)		16,085,000		14,757,987
Altice France S.A. 8.125%, 02/01/27 (144A)		5,930,000		5,589,025
Altice Luxembourg S.A. 7.750%, 05/15/22 (144A)		12,770,000		11,620,700
American Media LLC 5.500%, 09/01/21 (144A) (d) (e)		5,350,000		5,343,313
10.500%, 12/31/26 (144A)		8,006,316		7,606,000
CCO Holdings LLC / CCO Holdings Capital Corp. 5.000%, 02/01/28 (144A)		3,960,000		3,643,200
5.125%, 05/01/27 (144A) (a)		5,260,000		4,899,164
5.375%, 05/01/25 (144A)		880,000		843,700
Charter Communications Operating LLC / Charter Communications Operating Capital Corp. 4.200%, 03/15/28 (a)		8,160,000		7,645,733
4.908%, 07/23/25		9,064,000		9,008,769
5.375%, 04/01/38 (a)		2,050,000		1,910,558
Comcast Corp. 4.700%, 10/15/48		11,430,000		11,629,832
CSC Holdings LLC 6.625%, 10/15/25 (144A) (a)		2,680,000		2,713,500
10.125%, 01/15/23 (144A) (a)		1,125,000		1,210,230
10.875%, 10/15/25 (144A) (a)		5,667,000		6,363,588
DISH DBS Corp. 7.750%, 07/01/26 (a)		13,290,000		10,997,475
EW Scripps Co. (The) 5.125%, 05/15/25 (144A)		5,810,000		5,330,675
Meredith Corp. 6.875%, 02/01/26 (144A) (a)		3,620,000		3,538,550
Media—(Continued)
Time Warner Cable LLC 5.875%, 11/15/40		1,942,000		1,832,423
Univision Communications, Inc. 5.125%, 05/15/23 (144A) (a)		2,540,000		2,279,650
5.125%, 02/15/25 (144A) (a)		7,890,000		6,923,475
6.750%, 09/15/22 (144A)		1,530,000		1,541,093
UPC Holding B.V. 5.500%, 01/15/28 (144A) (a)		6,110,000		5,529,550
UPCB Finance IV, Ltd. 5.375%, 01/15/25 (144A) (a)		2,296,000		2,147,036
Urban One, Inc. 7.375%, 04/15/22 (144A) (a)		8,670,000		8,193,150
Virgin Media Secured Finance plc 5.500%, 01/15/25 (GBP)		2,619,000		3,311,471
5.500%, 08/15/26 (144A) (a)		5,985,000		5,535,227
				151,945,074
Mining — 3.1%
Alcoa Nederland Holding B.V. 6.125%, 05/15/28 (144A) (a)		12,052,000		11,539,790
Anglo American Capital plc 4.000%, 09/11/27 (144A)		3,540,000		3,198,705
Barrick Gold Corp. 5.250%, 04/01/42		2,520,000		2,521,467
Barrick North America Finance LLC 5.750%, 05/01/43		11,289,000		11,914,072
BHP Billiton Finance USA, Ltd. 2.875%, 02/24/22		79,000		78,402
6.250%, 5Y USD Swap + 4.971%, 10/19/75 (144A) (c)		2,392,000		2,444,792
6.750%, 5Y USD Swap + 5.093%, 10/19/75 (144A) (c)		8,191,000		8,518,640
First Quantum Minerals, Ltd. 6.500%, 03/01/24 (144A) (a)		2,740,000		2,274,200
7.000%, 02/15/21 (144A) (a)		8,250,000		7,920,000
7.250%, 04/01/23 (144A)		3,360,000		2,956,800
7.500%, 04/01/25 (144A)		1,730,000		1,427,250
Freeport-McMoRan, Inc. 5.400%, 11/14/34		860,000		677,250
5.450%, 03/15/43 (a)		16,860,000		12,834,675
Glencore Finance Canada, Ltd. 4.250%, 10/25/22 (144A)		788,000		785,506
5.550%, 10/25/42 (144A) (a)		1,000,000		900,120
Glencore Funding LLC 4.000%, 04/16/25 (144A) (a)		6,580,000		6,194,480
HudBay Minerals, Inc. 7.250%, 01/15/23 (144A)		3,770,000		3,722,875
7.625%, 01/15/25 (144A) (a)		2,460,000		2,404,650
Midwest Vanadium Pty, Ltd. 11.500%, 02/15/18 (144A) (d) (e) (g)		932,290		93
Northwest Acquisitions ULC / Dominion Finco, Inc. 7.125%, 11/01/22 (144A)		4,210,000		4,161,711
Yamana Gold, Inc. 4.950%, 07/15/24		9,130,000		8,974,001
				95,449,479

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Miscellaneous Manufacturing—0.4%
General Electric Co. 6.875%, 01/10/39		11,678,000	$	12,227,141
Oil & Gas—5.9%
Anadarko Finance Co. 7.500%, 05/01/31		80,000		94,666
Anadarko Petroleum Corp. 4.500%, 07/15/44		800,000		678,767
5.550%, 03/15/26		2,250,000		2,357,574
6.450%, 09/15/36		220,000		237,826
Apache Corp. 3.250%, 04/15/22		452,000		442,465
4.250%, 01/15/44		260,000		209,599
4.750%, 04/15/43		7,000,000		6,009,828
Berry Petroleum Co. LLC 7.000%, 02/15/26 (144A)		4,030,000		3,627,000
BP Capital Markets America, Inc. 3.119%, 05/04/26 (a)		3,580,000		3,408,198
Cenovus Energy, Inc. 5.250%, 06/15/37		410,000		361,565
Centennial Resource Production LLC 5.375%, 01/15/26 (144A)		1,490,000		1,385,700
Chesapeake Energy Corp. 8.000%, 01/15/25 (a)		2,970,000		2,621,025
8.000%, 06/15/27		5,960,000		5,006,400
ConocoPhillips Holding Co. 6.950%, 04/15/29		375,000		463,969
Covey Park Energy LLC / Covey Park Finance Corp. 7.500%, 05/15/25 (144A) (a)		12,790,000		10,999,400
Devon Energy Corp. 3.250%, 05/15/22		2,035,000		1,982,912
5.600%, 07/15/41		110,000		104,417
5.850%, 12/15/25		970,000		1,029,261
Diamondback Energy, Inc. 4.750%, 11/01/24 (a)		9,328,000		9,001,520
5.375%, 05/31/25 (a)		4,670,000		4,553,250
Eclipse Resources Corp. 8.875%, 07/15/23		2,715,000		2,328,112
Endeavor Energy Resources L.P. / EER Finance, Inc. 5.500%, 01/30/26 (144A)		1,350,000		1,383,750
5.750%, 01/30/28 (144A)		2,180,000		2,224,036
Ensco plc 7.750%, 02/01/26 (a)		1,600,000		1,184,000
EOG Resources, Inc. 4.150%, 01/15/26 (a)		1,665,000		1,709,700
EP Energy LLC / Everest Acquisition Finance, Inc. 6.375%, 06/15/23 (a)		3,800,000		1,197,000
8.000%, 02/15/25 (144A) (a)		2,660,000		1,097,250
9.375%, 05/01/24 (144A) (a)		5,280,000		2,349,600
Extraction Oil & Gas, Inc. 5.625%, 02/01/26 (144A) (a)		4,170,000		3,044,100
7.375%, 05/15/24 (144A) (a)		5,030,000		4,149,750
Gazprom OAO Via Gaz Capital S.A. 4.950%, 03/23/27 (144A)		10,470,000		9,964,173
KazMunayGas National Co. JSC 5.375%, 04/24/30 (144A)		300,000		294,457
Oil & Gas—(Continued)
KazMunayGas National Co. JSC 6.375%, 10/24/48 (144A)		1,060,000		1,066,360
Kerr-McGee Corp. 6.950%, 07/01/24		290,000		323,287
7.875%, 09/15/31		285,000		341,527
MEG Energy Corp. 6.375%, 01/30/23 (144A) (a)		5,000,000		4,725,000
7.000%, 03/31/24 (144A) (a)		11,409,000		10,895,595
Noble Energy, Inc. 3.850%, 01/15/28 (a)		1,910,000		1,729,232
6.000%, 03/01/41		10,200,000		9,966,804
Occidental Petroleum Corp. 3.125%, 02/15/22		110,000		109,378
3.500%, 06/15/25		1,850,000		1,831,373
4.625%, 06/15/45		230,000		228,657
Petrobras Global Finance B.V. 5.750%, 02/01/29		9,670,000		8,944,750
6.850%, 06/05/15 (a)		12,700,000		11,347,450
QEP Resources, Inc. 5.250%, 05/01/23 (a)		2,650,000		2,345,250
5.625%, 03/01/26 (a)		5,060,000		4,199,800
6.875%, 03/01/21		1,050,000		1,057,875
Range Resources Corp. 4.875%, 05/15/25		1,945,000		1,594,900
5.000%, 03/15/23 (a)		2,916,000		2,566,080
5.875%, 07/01/22		850,000		786,250
Shelf Drilling Holdings, Ltd. 8.250%, 02/15/25 (144A)		8,350,000		7,139,250
Shell International Finance B.V. 2.875%, 05/10/26 (a)		2,840,000		2,721,232
3.250%, 05/11/25		1,773,000		1,749,026
4.000%, 05/10/46		360,000		348,142
WPX Energy, Inc. 5.750%, 06/01/26		4,521,000		4,091,505
8.250%, 08/01/23		5,720,000		5,977,400
YPF S.A. 8.500%, 03/23/21		8,000,000		7,900,000
				179,487,393
Oil & Gas Services—0.1%
KCA Deutag UK Finance plc 9.875%, 04/01/22 (144A) (a)		3,750,000		3,075,000
Packaging & Containers—0.7%
ARD Securities Finance SARL 8.750%, PIK, 01/31/23 (144A) (b)		2,656,063		2,244,373
Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc. 4.625%, 05/15/23 (144A)		660,000		625,211
6.000%, 02/15/25 (144A) (a)		5,200,000		4,800,224
7.250%, 05/15/24 (144A)		4,860,000		4,847,850
Pactiv LLC 8.375%, 04/15/27		7,435,000		7,360,650
WestRock RKT Co. 4.000%, 03/01/23		140,000		139,927
				20,018,235

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Pharmaceuticals—3.9%
Allergan Funding SCS
3.450%, 03/15/22		450,000	$	443,096
4.550%, 03/15/35		3,400,000		3,228,435
4.750%, 03/15/45 (a)		2,645,000		2,514,084
Bausch Health Cos., Inc. 5.500%, 11/01/25 (144A)		5,070,000		4,727,775
5.625%, 12/01/21 (144A)		2,740,000		2,698,900
BioScrip, Inc. Zero Coupon, 08/15/20 (c) (e) (h) (i)		17,830,000		18,677,327
8.875%, 02/15/21 (a)		4,952,000		4,617,740
Cigna Corp. 4.800%, 08/15/38 (144A)		8,120,000		8,051,774
CVS Health Corp. 3.875%, 07/20/25 (a)		496,000		483,568
4.100%, 03/25/25		38,960,000		38,618,079
4.780%, 03/25/38		17,110,000		16,413,639
5.125%, 07/20/45		1,440,000		1,403,478
Mead Johnson Nutrition Co. 4.125%, 11/15/25		1,653,000		1,696,570
Teva Pharmaceutical Finance Netherlands III B.V. 2.800%, 07/21/23 (a)		4,760,000		4,099,273
Valeant Pharmaceuticals International 9.250%, 04/01/26 (144A)		11,675,000		11,675,000
				119,348,738
Pipelines—4.0%
Andeavor Logistics L.P. / Tesoro Logistics Finance Corp. 5.500%, 10/15/19		600,000		605,059
Blue Racer Midstream LLC / Blue Racer Finance Corp. 6.125%, 11/15/22 (144A)		1,825,000		1,761,125
6.625%, 07/15/26 (144A)		2,910,000		2,706,300
DCP Midstream Operating L.P. 4.950%, 04/01/22 (a)		1,620,000		1,603,800
6.750%, 09/15/37 (144A)		3,480,000		3,427,800
El Paso Natural Gas Co. LLC 7.500%, 11/15/26 (a)		4,250,000		4,948,717
8.375%, 06/15/32		190,000		229,851
Energy Transfer L.P. 5.500%, 06/01/27		1,376,000		1,341,600
5.875%, 01/15/24		1,638,000		1,672,201
Energy Transfer Partners L.P. / Regency Energy Finance Corp. 5.875%, 03/01/22 (a)		780,000		811,534
Enterprise Products Operating LLC 3.700%, 02/15/26		1,072,000		1,056,746
3.750%, 02/15/25		2,100,000		2,078,740
3.900%, 02/15/24		225,000		226,331
5.375%, 3M LIBOR + 2.570%, 02/15/78 (c)		13,090,000		10,837,845
Genesis Energy L.P. / Genesis Energy Finance Corp. 5.625%, 06/15/24 (a)		1,060,000		908,950
6.000%, 05/15/23 (a)		6,046,000		5,592,550
IFM U.S. Colonial Pipeline 2 LLC 6.450%, 05/01/21 (144A)		2,500,000		2,610,225
Kinder Morgan, Inc. 4.300%, 06/01/25 (a)		1,240,000		1,233,839
7.800%, 08/01/31 (a)		67,000		80,454
Pipelines—(Continued)
MPLX L.P. 4.875%, 12/01/24		4,500,000		4,580,351
NGPL PipeCo LLC 7.768%, 12/15/37 (144A) (a)		4,180,000		4,765,200
Northwest Pipeline LLC 4.000%, 04/01/27 (a)		14,460,000		14,062,292
Rockies Express Pipeline LLC 6.875%, 04/15/40 (144A)		4,875,000		5,094,375
7.500%, 07/15/38 (144A)		4,485,000		5,068,050
Southern Natural Gas Co. LLC 8.000%, 03/01/32		25,000		31,869
Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 5.125%, 02/01/25		4,791,000		4,491,563
5.375%, 02/01/27 (a)		2,770,000		2,596,875
Williams Cos., Inc. (The) 8.750%, 03/15/32		28,712,000		37,377,978
				121,802,220
Real Estate—0.3%
Hunt Cos., Inc. 6.250%, 02/15/26 (144A)		5,160,000		4,408,704
Newmark Group, Inc. 6.125%, 11/15/23 (144A)		4,900,000		4,824,640
				9,233,344
Real Estate Investment Trusts—0.8%
CoreCivic, Inc. 4.625%, 05/01/23		820,000		758,500
5.000%, 10/15/22 (a)		5,400,000		5,170,500
CTR Partnership L.P. / CareTrust Capital Corp. 5.250%, 06/01/25		6,560,000		6,314,000
GLP Capital L.P. / GLP Financing II, Inc. 5.375%, 04/15/26		10,000		9,890
5.750%, 06/01/28		4,400,000		4,444,000
MPT Operating Partnership L.P. / MPT Finance Corp. 5.000%, 10/15/27		7,770,000		7,104,694
				23,801,584
Retail—1.1%
1011778 BC ULC / New Red Finance, Inc. 5.000%, 10/15/25 (144A) (a)		3,770,000		3,468,400
AutoZone, Inc. 2.500%, 04/15/21		800,000		782,266
Golden Nugget, Inc. 8.750%, 10/01/25 (144A) (a)		9,210,000		8,864,625
L Brands, Inc. 5.250%, 02/01/28		8,932,000		7,636,860
5.625%, 10/15/23 (a)		4,550,000		4,464,688
McDonald’s Corp. 3.350%, 04/01/23		441,000		438,744
3.700%, 01/30/26		1,047,000		1,026,859
Sally Holdings LLC / Sally Capital, Inc. 5.625%, 12/01/25		1,660,000		1,527,200

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Retail—(Continued)
Tendam Brands S.A.U.
5.000%, 09/15/24 (144A) (EUR)		1,350,000	$	1,415,225
5.250%, 3M EURIBOR + 5.250%, 09/15/24 (144A) (EUR) (c)		3,750,000		3,995,286
				33,620,153
Savings & Loans—0.3%
Nationwide Building Society 4.363%, 3M LIBOR + 1.392%, 08/01/24 (144A) (c)		9,910,000		9,708,511
Semiconductors—0.1%
Advanced Micro Devices, Inc. 7.000%, 07/01/24 (a)		3,180,000		3,267,450
Broadcom Corp. / Broadcom Cayman Finance, Ltd. 3.125%, 01/15/25		280,000		252,880
3.875%, 01/15/27		750,000		673,271
				4,193,601
Software—0.5%
j2 Cloud Services LLC / j2 GlobalCo-Obligor, Inc. 6.000%, 07/15/25 (144A)		3,930,000		3,841,575
Microsoft Corp. 3.300%, 02/06/27		9,800,000		9,712,272
				13,553,847
Telecommunications—3.7%
AT&T, Inc. 4.450%, 04/01/24		3,330,000		3,385,028
British Telecommunications plc 4.500%, 12/04/23		3,520,000		3,567,468
9.625%, 12/15/30		4,915,000		6,647,409
CommScope Technologies LLC 5.000%, 03/15/27 (144A) (a)		2,510,000		2,033,100
6.000%, 06/15/25 (144A) (a)		2,200,000		2,002,000
Deutsche Telekom International Finance B.V. 2.485%, 09/19/23 (144A)		10,717,000		10,119,115
Intelsat Jackson Holdings S.A. 5.500%, 08/01/23		5,400,000		4,698,000
Millicom International Cellular S.A. 6.625%, 10/15/26 (144A) (a)		4,290,000		4,344,054
Sprint Capital Corp. 8.750%, 03/15/32		9,850,000		10,391,750
Sprint Communications, Inc. 11.500%, 11/15/21 (a)		1,313,000		1,486,972
Sprint Corp. 7.125%, 06/15/24		3,510,000		3,478,621
7.250%, 09/15/21		1,390,000		1,422,665
7.625%, 03/01/26 (a)		2,330,000		2,300,875
7.875%, 09/15/23		5,700,000		5,849,625
T-Mobile USA, Inc. 4.750%, 02/01/28 (a)		4,590,000		4,153,950
6.500%, 01/15/24 (a)		803,000		825,227
Telecom Italia S.p.A. 5.303%, 05/30/24 (144A) (a)		14,640,000		13,908,000
Telecommunications—(Continued)
Telefonica Emisiones S.A. 4.103%, 03/08/27		5,600,000		5,399,745
Verizon Communications, Inc. 2.625%, 08/15/26		820,000		743,832
3.850%, 11/01/42		5,210,000		4,512,013
4.522%, 09/15/48		1,200,000		1,125,772
5.250%, 03/16/37		660,000		688,218
Vodafone Group plc 4.375%, 05/30/28 (a)		8,080,000		7,842,820
5.250%, 05/30/48		1,680,000		1,579,263
Windstream Services LLC / Windstream Finance Corp. 10.500%, 06/30/24 (144A)		12,215,000		9,283,400
				111,788,922
Transportation—1.3%
Navios Maritime Acquisition Corp. / Navios Acquisition Finance U.S., Inc. 8.125%, 11/15/21 (144A) (a)		4,670,000		3,502,500
Neovia Logistics Services LLC / SPL Logistics Finance Corp. 8.875%, 08/01/20 (144A) (a)		8,000,000		6,960,000
Union Pacific Corp. 4.375%, 09/10/38		2,835,000		2,805,726
4.500%, 09/10/48		7,420,000		7,326,965
XPO CNW, Inc. 6.700%, 05/01/34		20,323,000		17,274,550
				37,869,741
Trucking & Leasing—0.6%
DAE Funding LLC 4.500%, 08/01/22 (144A)		80,000		76,800
5.750%, 11/15/23 (144A)		10,100,000		9,999,000
Park Aerospace Holdings, Ltd. 4.500%, 03/15/23 (144A)		3,800,000		3,553,000
5.250%, 08/15/22 (144A)		5,120,000		4,953,600
				18,582,400
Water—0.1%
Anglian Water Osprey Financing plc 5.000%, 04/30/23 (GBP)		2,650,000		3,312,770
Total Corporate Bonds & Notes (Cost $1,874,410,491)				1,786,185,444
Mortgage-Backed Securities—9.0%
Collateralized Mortgage Obligations—5.3%
Banc of America Funding Corp. 2.445%, 02/27/37 (144A) (c)		15,965,174		12,954,458
Banc of America Funding Trust 2.918%, 03/27/36 (144A) (c)		5,993,151		5,175,011
3.006%, 1M LIBOR + 0.165%, 09/29/36 (144A) (c)		40,262,005		30,225,557
11.028%, 01/27/30 (144A) (c)		15,380,119		6,694,397
Banc of America Mortgage Trust 4.363%, 09/25/35 (c)		63,185		60,857

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Collateralized Mortgage Obligations—(Continued)
BCAP LLC Trust 1.912%, 10/28/36 (144A) (c)		1,530,630	$	1,499,411
3.961%, 05/26/47 (144A) (c)		8,012,357		7,737,701
Bear Stearns Asset-Backed Securities Trust 22.723%,-1x 1M LIBOR + 33.583%, 07/25/36 (c)		424,962		633,935
Countrywide Alternative Loan Trust 3.146%, 1M LIBOR + 0.640%, 07/25/35 (c)		912,875		892,290
5.750%, 01/25/37		2,277,091		1,886,873
6.000%, 01/25/37		2,294,868		2,080,294
11.426%,-1x 1M LIBOR + 16.940%, 06/25/35 (c)		1,573,517		1,766,317
15.281%,-1x 1M LIBOR + 22.800%, 02/25/36 (c)		1,466,656		1,486,202
18.575%,-1x 1M LIBOR + 28.600%, 07/25/36 (c)		2,561,411		3,664,337
23.963%,-1x 1M LIBOR + 39.000%, 08/25/37 (c)		1,230,256		1,900,547
Countrywide Alternative Loan Trust Resecuritization 7.648%, 08/25/37 (c)		3,108,279		2,187,604
Countrywide Home Loan Reperforming Loan REMIC Trust 3.881%, 03/25/35 (144A) (c) (d) (e) (j)		5,316,367		556,172
Credit Suisse Mortgage Trust 2.515%, 1M LIBOR + 0.200%, 06/27/46 (144A) (c)		1,064,653		1,057,281
16.741%, 1M LIBOR + 30.525%, 02/25/36 (c)		1,232,614		1,529,726
Flagstar Mortgage Trust 3.500%, 04/25/48 (144A) (c)		12,869,893		12,608,801
GreenPoint MTA Trust 2.946%, 1M LIBOR + 0.440%, 06/25/45 (c)		1,288,442		1,228,599
GSMPS Mortgage Loan Trust 2.906%, 1M LIBOR + 0.400%, 04/25/36 (144A) (c)		720,544		602,867
HarborView Mortgage Loan Trust 3.506%, 1M LIBOR + 1.000%, 10/25/37 (c)		1,289,825		1,281,867
IndyMac INDX Mortgage Loan Trust 3.226%, 1M LIBOR + 0.720%, 01/25/35 (c)		927,251		801,796
JPMorgan Mortgage Trust 2.500%, 03/25/43 (144A) (c)		9,594		9,254
3.500%, 10/25/48 (144A) (c)		9,269,918		9,077,435
6.500%, 01/25/36		96,145		74,815
JPMorgan Resecuritization Trust 2.525%, 1M LIBOR + 0.210%, 07/27/46 (144A) (c)		2,060,849		2,048,876
Lehman XS Trust 2.666%, 1M LIBOR + 0.160%, 03/25/47 (c)		1,516,061		1,486,585
2.706%, 1M LIBOR + 0.200%, 08/25/46 (c)		2,139,319		2,017,591
MASTR Seasoned Securitization Trust 3.949%, 10/25/32 (c)		127,994		129,407
Merrill Lynch Mortgage Investors Trust 4.311%, 05/25/34 (c)		37,025		36,593
4.558%, 08/25/33 (c)		588,476		552,643
Morgan Stanley Mortgage Loan Trust 2.826%, 1M LIBOR + 0.320%, 01/25/35 (c)		616,197		600,093
New Residential Mortgage Loan Trust 4.250%, 09/25/56 (144A) (c)		7,621,389		7,748,411
Nomura Resecuritization Trust 2.575%, 1M LIBOR + 0.260%, 02/26/46 (144A) (c)		4,868,000		4,702,282
NovaStar Mortgage Funding Trust 2.696%, 1M LIBOR + 0.190%, 09/25/46 (c)		723,454		657,751
Prime Mortgage Trust 5.500%, 05/25/35 (144A)		305,765		279,331
6.000%, 05/25/35 (144A)		2,231,701		1,766,080
Collateralized Mortgage Obligations—(Continued)
RBSGC Mortgage Loan Trust 2.956%, 1M LIBOR + 0.450%, 01/25/37 (c)		623,752		407,402
Residential Accredit Loans, Inc. Trust 3.405%, 11/25/37 (c)		3,671,368		3,257,788
Residential Asset Securitization Trust 5.750%, 02/25/36		1,825,969		1,797,397
Sequoia Mortgage Trust 3.543%, 6M LIBOR + 0.680%, 06/20/33 (c)		104,232		103,445
3.715%, 07/25/45 (144A) (c)		10,053		10,012
Structured Adjustable Rate Mortgage Loan Trust 3.849%, 1M LIBOR + 1.500%, 09/25/37 (c)		3,822,538		3,726,962
4.233%, 01/25/35 (c)		381,181		373,343
4.267%, 09/25/35 (c)		652,454		516,169
Structured Asset Mortgage Investments Trust 2.716%, 1M LIBOR + 0.210%, 05/25/46 (c)		200,573		168,722
2.786%, 1M LIBOR + 0.280%, 02/25/36 (c)		3,628,313		3,408,429
Structured Asset Securities Corp. Trust 2.856%, 1M LIBOR + 0.350%, 03/25/35 (c)		1,412,676		1,162,831
WaMu Mortgage Pass-Through Certificates Trust 2.329%, COFI + 1.250%, 03/25/47 (c)		1,687,337		1,587,446
2.776%, 1M LIBOR + 0.270%, 12/25/45 (c)		436,055		431,543
2.986%, 1M LIBOR + 0.480%, 12/25/45 (c)		13,106,689		7,813,808
3.657%, 09/25/36 (c)		653,325		598,572
4.174%, 1M LIBOR + 6.680%, 04/25/37 (c) (e) (j)		11,142,633		2,670,553
4.184%, 10/25/34 (c)		542,944		542,447
4.239%, 08/25/33 (c)		1,199,303		1,183,830
Wells Fargo Mortgage-Backed Securities Trust 4.425%, 06/25/35 (c)		36,574		37,574
4.476%, 10/25/35 (c)		32,696		33,033
				161,531,353
Commercial Mortgage-Backed Securities—3.7%
BAMLLRe-REMIC Trust 5.780%, 08/10/45 (144A) (c)		11,727,532		8,538,816
Banc of America Commercial Mortgage Trust 5.672%, 04/10/49 (c)		1,616,129		969,008
Bayview Commercial Asset Trust Zero Coupon, 07/25/37 (144A) (d) (e) (f) (j)		2,731,482		0
BX Trust 7.955%, 1M LIBOR + 5.500%, 10/15/32 (144A) (c)		26,480,000		26,479,952
Credit Suisse Commercial Mortgage Trust 5.373%, 12/15/39		550,353		366,465
5.869%, 09/15/40 (c)		4,100,209		3,966,680
6.482%, 06/15/38 (c)		584,059		317,706
10.075%, 1M LIBOR + 7.620%, 07/15/32 (144A) (c)		26,600,000		26,459,015
Credit Suisse Mortgage Capital LLC 4.373%, 09/15/37 (144A)		6,620,000		5,925,668
DBUBS Mortgage Trust 3.750%, 08/10/44 (144A)		5,180,000		3,332,916
GE Business Loan Trust 2.875%, 1M LIBOR + 0.420%, 05/15/34 (144A) (c)		419,945		392,802
GE Commercial Mortgage Corp. Trust 5.677%, 12/10/49 (c)		220,000		55,000

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Commercial Mortgage-Backed Securities—(Continued)
GMAC Commercial Mortgage Securities, Inc. 5.349%, 11/10/45 (c)		1,037,309	$	957,717
GS Mortgage Securities Trust 5.622%, 11/10/39		1,879,481		1,609,211
JPMorgan Chase Commercial Mortgage Securities Trust 5.386%, 05/15/47 (c)		2,280,000		950,053
5.502%, 06/12/47 (a) (c)		5,220,000		4,268,237
5.503%, 01/15/49 (c)		7,780,000		1,595,756
6.206%, 02/15/51 (c)		193,728		179,683
Lone Star Portfolio Trust 9.605%, 1M LIBOR + 7.150%, 09/15/28 (144A) (c)		5,545,947		5,559,535
9.673%, 1M LIBOR + 7.218%, 09/15/20 (144A) (c)		2,942,635		2,933,243
ML-CFC Commercial Mortgage Trust 5.450%, 08/12/48 (c)		525,878		380,577
5.450%, 08/12/48 (144A) (c)		60,169		43,544
6.086%, 09/12/49 (c)		3,203,634		1,900,060
Morgan Stanley Capital Trust 5.399%, 12/15/43		1,138,959		859,330
Multifamily Trust 10.442%, 04/25/46 (144A) (c)		9,830,233		10,343,823
UBS-Barclays Commercial Mortgage Trust 4.892%, 05/10/63 (144A) (c)		4,530,000		2,807,312
Waterfall Commercial Mortgage Trust 4.104%, 09/14/22 (144A) (c)		1,526,061		1,532,834
				112,724,943
Total Mortgage-Backed Securities (Cost $265,396,356)				274,256,296
Floating Rate Loans (k)—8.6%
Auto Components—0.2%
American Axle & Manufacturing, Inc. Term Loan B, 4.750%, 1M LIBOR + 2.250%, 04/06/24		8,264,051		7,869,442
Building Materials—0.3%
Quikrete Holdings, Inc. 1st Lien Term Loan, 5.272%, 1M LIBOR + 2.750%, 11/15/23		8,528,173		8,139,075
Commercial Services—0.9%
Albany Molecular Research, Inc.
1st Lien Term Loan, 5.772%, 1M LIBOR + 3.250%, 08/30/24		7,129,750		6,773,262
Jaguar Holding Co. II Term Loan, 5.022%, 1M LIBOR + 2.500%, 08/18/22		6,199,028		5,903,712
Parexel International Corp. Term Loan B, 5.272%, 1M LIBOR + 2.750%, 09/27/24		6,497,750		5,921,075
Prime Security Services Borrower LLC 1st Lien Term Loan, 5.272%, 1M LIBOR + 2.750%, 05/02/22		8,145,236		7,829,608
				26,427,657
Distributors—0.3%
American Builders & Contractors Supply Co., Inc. Term Loan B, 4.522%, 1M LIBOR + 2.000%, 10/31/23		8,508,897		8,119,921
Entertainment—0.2%
Scientific Games International, Inc. Term Loan B5, 5.250%, 3M LIBOR + 2.750%, 08/14/24		5,545,916		5,221,480
Food—0.3%
Albertson’s LLC Term Loan B6, 5.691%, 3M LIBOR + 3.000%, 06/22/23		6,801,125		6,500,175
Post Holdings, Inc. Incremental Term Loan, 4.510%, 1M LIBOR + 2.000%, 05/24/24		1,824,390		1,767,377
				8,267,552
Healthcare-Services—0.4%
MPH Acquisition Holdings LLC Term Loan B, 5.553%, 3M LIBOR + 2.750%, 06/07/23		7,266,220		6,872,027
RadNet, Inc. Term Loan, 6.190%, 3M LIBOR + 3.750%, 06/30/23		4,933,117		4,883,786
				11,755,813
Hotels, Restaurants & Leisure—0.3%
CEC Entertainment, Inc. Term Loan B, 5.772%, 1M LIBOR + 3.250%, 02/14/21		8,648,783		8,058,503
Insurance—0.3%
UFC Holdings LLC 1st Lien Term Loan, 5.780%, 1M LIBOR + 3.250%, 08/18/23		8,298,975		8,121,136
Internet—0.2%
Ancestry.com Operations, Inc. 1st Lien Term Loan, 5.780%, 1M LIBOR + 3.250%, 10/19/23		5,868,926		5,612,160
Internet Software & Services—0.1%
Travelport Finance (Luxembourg) S.a.r.l. Term Loan B, 1M LIBOR + 2.500%, 03/17/25		3,850,000		3,792,250
Leisure Time—0.1%
Intrawest Resorts Holdings, Inc. Term Loan B1, 5.522%, 1M LIBOR + 3.000%, 07/31/24		3,049,200		2,945,018
Lodging—0.5%
Boyd Gaming Corp. Term Loan B3, 4.666%, 1W LIBOR + 2.250%, 09/15/23		4,181,107		4,003,410

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Floating Rate Loans (k)—(Continued)

Security Description	Principal Amount*		Value
Lodging—(Continued)
Caesars Resort Collection LLC 1st Lien Term Loan B, 5.272%, 1M LIBOR + 2.750%, 12/22/24		8,712,000	$	8,363,520
MGM Growth Properties Operating Partnership L.P. Term Loan B, 4.522%, 1M LIBOR + 2.000%, 4/23/23		2,451,104		2,348,464
				14,715,394
Media—1.1%
Advantage Sales & Marketing, Inc. 1st Lien Term Loan, 5.772%, 1M LIBOR + 3.250%, 07/23/21		6,959,149		6,176,245
American Media, Inc. Bridge Term Loan, 10.522%, 3M LIBOR + 8.000%, 01/07/19 (e)		8,470,000		8,470,000
CBS Radio, Inc. Term Loan B, 5.256%, 1M LIBOR + 2.750%, 11/18/24		8,550,471		8,048,131
Lions Gate Capital Holdings LLC Term Loan B, 4.772%, 1M LIBOR + 2.250%, 03/24/25		3,675,501		3,540,732
Unitymedia Finance LLC Term Loan B, 4.705%, 1M LIBOR + 2.250%, 09/30/25		130,000		125,816
Univision Communications, Inc. Term Loan C5, 5.272%, 1M LIBOR + 2.750%, 03/15/24		8,683,480		7,893,283
				34,254,207
Packaging & Containers—0.9%
Berry Global, Inc. Term Loan Q, 4.387%, 3M LIBOR + 2.000%, 10/01/22		8,435,786		8,230,164
BWAY Holding Co. Term Loan B, 5.658%, 3M LIBOR + 3.250%, 04/03/24		6,402,500		6,046,361
Flex Acquisition Co., Inc. 1st Lien Term Loan, 5.349%, 1M LIBOR + 3.000%, 12/29/23		5,276,947		4,983,416
Reynolds Group Holdings, Inc. Term Loan, 5.272%, 1M LIBOR + 2.750%, 02/05/23		7,932,703		7,595,563
				26,855,504
Pharmaceuticals—0.1%
Change Healthcare Holdings LLC Term Loan B, 5.272%, 1M LIBOR + 2.750%, 03/01/24		2,589,938		2,467,455
Professional Services—0.0%
Trans Union LLC Term Loan B3, 4.522%, 1M LIBOR + 2.000%, 04/10/23		1,033,775		998,369
Retail—1.2%
Academy, Ltd. Term Loan B, 6.349%, 1M LIBOR + 4.000%, 07/01/22		9,671,166		6,515,948
CWGS Group LLC Term Loan, 5.130%, 1M LIBOR + 2.750%, 11/08/23		1,303,400		1,182,021
Michaels Stores, Inc. Term Loan B, 5.010%, 1M LIBOR + 2.500%, 01/30/23		6,572,633		6,301,512
Party City Holdings, Inc. Term Loan B, 5.030%, 6M LIBOR + 2.500%, 08/19/22		3,444,549		3,347,240
Petco Animal Supplies, Inc. Term Loan B, 5.777%, 3M LIBOR + 3.250%, 01/26/23		4,947,997		3,682,136
PetSmart, Inc. Term Loan B2, 5.380%, 1M LIBOR + 3.000%, 03/11/22		21,004,735		16,646,253
				37,675,110
Software—0.4%
Almonde, Inc. 1st Lien Term Loan, 6.303%, 3M LIBOR + 3.500%, 06/13/24		4,205,817		3,934,542
First Data Corp. Term Loan, 4.504%, 1M LIBOR + 2.000%, 04/26/24		5,599,274		5,364,805
MA FinanceCo. LLC Term Loan B3, 5.022%, 1M LIBOR + 2.500%, 06/21/24		467,240		436,869
Seattle Spinco, Inc. Term Loan B3, 5.022%, 1M LIBOR + 2.500%, 06/21/24		3,155,385		2,950,285
				12,686,501
Telecommunications—0.5%
Level 3 Financing, Inc. Term Loan B, 4.754%, 1M LIBOR + 2.250%, 02/22/24		6,960,000		6,594,600
UPC Financing Partnership Term Loan AR, 4.955%, 1M LIBOR + 2.500%, 01/15/26		7,362,937		7,027,003
Virgin Media Bristol LLC Term Loan K, 4.955%, 1M LIBOR + 2.500%, 01/15/26		2,865,395		2,724,274
				16,345,877
Trucking & Leasing—0.3%
Avolon TLB Borrower 1 (U.S.) LLC Term Loan B3, 4.470%, 1M LIBOR + 2.000%, 01/15/25		10,720,421		10,347,640
Total Floating Rate Loans (Cost $278,816,426)				260,676,064

See accompanying notes to financial statements.

BHFTII-15

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Foreign Government—8.2%

Security Description	Principal Amount*		Value
Regional Government—1.0%
Japan Finance Organization for Municipalities 4.000%, 01/13/21		1,900,000	$	1,940,910
Provincia de Buenos Aires 6.500%, 02/15/23 (144A) (a) (l)		27,940,000		22,491,700
7.875%, 06/15/27 (144A) (l)		3,990,000		2,872,840
9.125%, 03/16/24 (144A) (l)		2,660,000		2,201,150
				29,506,600
Sovereign—7.2%
Abu Dhabi Government International Bond 4.125%, 10/11/47 (144A)		11,190,000		10,714,425
Argentina POM Politica Monetaria 59.257%, 06/21/20 (ARS) (c)		307,940,000		8,994,530
Argentine Republic Government International Bonds 4.625%, 01/11/23		10,080,000		7,963,200
5.625%, 01/26/22		3,620,000		3,054,375
5.875%, 01/11/28 (a)		5,700,000		4,096,875
7.500%, 04/22/26		13,580,000		10,880,975
7.625%, 04/22/46		1,170,000		847,665
Bahamas Government International Bond 5.750%, 01/16/24 (144A)		1,500,000		1,516,875
Bermuda Government International Bond 4.138%, 01/03/23 (144A)		2,000,000		2,022,340
Bonos de la Nacion Argentina con Ajuste por CER 4.000%, 03/06/20 (ARS) (l)		95,160,000		3,183,792
Brazil Notas do Tesouro Nacional 10.000%, 01/01/21 (BRL)		26,217,000		7,075,549
10.000%, 01/01/27 (BRL)		46,432,000		12,533,567
Brazilian Government International Bond 6.000%, 04/07/26 (a)		6,470,000		6,910,931
Ecuador Government International Bonds 8.750%, 06/02/23 (144A) (a)		1,740,000		1,622,550
10.750%, 03/28/22 (144A)		8,450,000		8,523,937
Ghana Government International Bonds 7.625%, 05/16/29 (144A)		10,140,000		9,082,601
8.125%, 01/18/26 (l)		4,200,000		4,005,792
Honduras Government International Bond 6.250%, 01/19/27		4,140,000		4,088,664
Indonesia Government International Bonds 5.125%, 01/15/45		3,000,000		2,949,474
5.250%, 01/17/42 (a)		15,090,000		15,145,275
Indonesia Treasury Bonds 7.000%, 05/15/22 (IDR)		9,560,000,000		646,794
7.000%, 05/15/27 (IDR)		382,929,000,000		24,925,003
8.375%, 09/15/26 (IDR)		66,608,000,000		4,709,524
Kuwait International Government Bond 3.500%, 03/20/27 (144A)		11,030,000		10,967,614
Mexico Government International Bond 4.125%, 01/21/26		8,170,000		7,986,175
Qatar Government International Bond 5.103%, 04/23/48 (144A)		10,100,000		10,607,525
Russian Federal Bond - OFZ 7.050%, 01/19/28 (RUB)		1,755,525,000		22,915,680
Sovereign—(Continued)
Senegal Government International Bonds 6.250%, 05/23/33 (144A) (l)		8,720,000		7,496,584
6.750%, 03/13/48 (144A) (l)		4,470,000		3,696,690
				219,164,981
Total Foreign Government (Cost $284,163,033)				248,671,581
U.S. Treasury & Government Agencies—6.0%
Agency Sponsored Mortgage - Backed—3.9%
Fannie Mae 15 Yr. Pool 3.000%, TBA (m)		100,000		99,785
5.000%, 12/01/21		6,570		6,678
Fannie Mae 20 Yr. Pool 3.000%, 12/01/37		1,958,308		1,939,383
8.500%, 08/01/19		577		576
Fannie Mae 30 Yr. Pool 3.000%, 11/01/46		3,386,219		3,306,246
3.000%, 11/01/48		800,000		780,955
4.000%, TBA (m)		1,700,000		1,733,504
5.000%, 01/01/39		260,004		275,475
5.000%, 06/01/40		151,260		160,619
5.000%, 07/01/40		105,330		111,848
5.000%, 11/01/48		589,688		619,490
5.000%, TBA (m)		100,000		104,779
6.000%, 07/01/38		14,776		15,858
6.500%, 08/01/31		282		303
6.500%, 12/01/36		1,001		1,147
6.500%, 06/01/37		15,718		16,869
6.500%, 10/01/37		15,954		17,823
7.000%, 05/01/26		1,118		1,158
7.000%, 07/01/30		248		251
7.000%, 01/01/31		257		272
7.000%, 07/01/31		1,167		1,227
7.000%, 09/01/31		2,487		2,696
7.000%, 10/01/31		2,370		2,637
7.000%, 11/01/31		17,097		17,854
7.000%, 01/01/32		5,420		5,495
7.000%, 02/01/32		2,423		2,428
7.500%, 12/01/29		437		440
7.500%, 01/01/30		405		469
7.500%, 02/01/30		304		306
7.500%, 06/01/30		177		177
7.500%, 08/01/30		78		79
7.500%, 09/01/30		514		569
7.500%, 10/01/30		39		41
7.500%, 11/01/30		9,427		9,777
7.500%, 02/01/31		1,103		1,111
8.000%, 08/01/27		181		185
8.000%, 07/01/30		468		550
8.000%, 09/01/30		376		388
Fannie Mae REMICS (CMO) 2.856%, 1M LIBOR + 0.350%, 05/25/34 (c)		98,878		98,943
4.500%, 06/25/29		188,453		193,472
9.750%, 08/25/19		51		51

See accompanying notes to financial statements.

BHFTII-16

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac 20 Yr. Gold Pool 3.000%, 02/01/38		2,268,969	$	2,233,259
3.000%, 04/01/38		1,990,174		1,960,441
Freddie Mac 30 Yr. Gold Pool 3.000%, 04/01/47		1,553,312		1,515,209
3.000%, TBA (m)		6,500,000		6,335,373
4.000%, 09/01/48		2,258,877		2,303,333
4.000%, TBA (m)		3,200,000		3,262,174
5.000%, 08/01/48		599,998		628,185
5.000%, 11/01/48		99,645		104,586
6.000%, 12/01/36		14,834		16,182
6.000%, 02/01/37		11,250		12,171
7.000%, 03/01/39		94,274		106,909
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO) 1.330%, 08/25/42 (c) (j)		70,400,000		2,980,201
Freddie Mac REMICS (CMO) 1,156.500%, 06/15/21 (j)		2		8
Freddie Mac Structured Agency Credit Risk Debt Notes (CMO) 5.756%, 1M LIBOR + 3.250%, 07/25/29 (c)		11,730,000		12,337,368
5.956%, 1M LIBOR + 3.450%, 10/25/29 (c)		17,780,000		18,814,677
6.956%, 1M LIBOR + 4.450%, 03/25/30 (c)		8,840,000		9,353,439
7.006%, 1M LIBOR + 4.500%, 02/25/24 (c)		2,210,000		2,477,843
7.656%, 1M LIBOR + 5.150%, 10/25/29 (c)		10,500,000		11,764,486
13.506%, 1M LIBOR + 11.000%, 10/25/48 (144A) (c)		6,500,000		6,644,134
Ginnie Mae I 30 Yr. Pool 3.500%, 06/15/48		4,205,909		4,251,491
5.000%, 04/15/35		9,362		9,961
5.500%, 01/15/34		43,216		46,733
5.500%, 04/15/34		12,546		13,571
5.500%, 07/15/34		74,009		80,098
5.500%, 10/15/34		45,050		48,229
5.750%, 10/15/38		95,027		102,154
6.000%, 02/15/33		1,304		1,420
6.000%, 03/15/33		4,134		4,470
6.000%, 06/15/33		3,820		4,158
6.000%, 07/15/33		6,219		6,783
6.000%, 09/15/33		5,036		5,405
6.000%, 10/15/33		2,697		2,923
6.000%, 08/15/34		13,888		14,905
6.500%, 03/15/29		786		847
6.500%, 02/15/32		734		837
6.500%, 03/15/32		860		983
6.500%, 11/15/32		3,757		4,123
7.000%, 03/15/31		93		94
Ginnie Mae II 30 Yr. Pool 3.000%, 09/20/47		735,001		723,470
3.000%, 11/20/47		2,952,836		2,906,227
3.500%, 06/20/44		1,871,513		1,892,093
3.500%, TBA (m)		5,400,000		5,436,826
5.000%, 08/20/34		45,298		48,077
5.000%, 08/20/48		197,862		206,205
5.000%, 11/20/48		99,820		104,012
5.000%, TBA (m)		4,600,000		4,785,531
Agency Sponsored Mortgage - Backed—(Continued)
Ginnie Mae II 30 Yr. Pool 5.500%, 03/20/34		6,611		7,061
6.000%, 05/20/32		8,812		9,545
6.000%, 11/20/33		10,653		11,559
Ginnie Mae II ARM Pool 4.030%, 1Y CMT + 1.440%, 01/20/60 (c)		644,307		661,828
4.345%, 1Y CMT, 05/20/60 (c)		458,824		471,883
Government National Mortgage Association (CMO) 0.414%, 03/16/47 (c) (j)		6,703,237		91,318
0.462%, 04/16/52 (c) (j)		10,641,010		151,346
2.614%, 1M LIBOR + 0.300%, 05/20/68 (c)		3,069,453		3,060,047
3.000%, 04/20/41		451,325		450,020
				117,998,125
Federal Agencies—0.1%
Tennessee Valley Authority 5.980%, 04/01/36		1,760,000		2,314,057
U.S. Treasury—2.0%
U.S. Treasury Bond 3.125%, 05/15/48		830,000		847,215
U.S. Treasury Notes 1.250%, 03/31/19 (a)		40,060,000		39,945,631
1.250%, 08/31/19		15,290,000		15,152,032
2.750%, 09/30/20		470,000		471,696
2.875%, 10/15/21		60,000		60,628
2.875%, 11/30/25		1,790,000		1,822,931
2.875%, 05/15/28		1,100,000		1,117,690
2.875%, 08/15/28		3,120,000		3,170,467
				62,588,290
Total U.S. Treasury & Government Agencies (Cost $183,244,906)				182,900,472
Asset-Backed Securities—5.3%
Asset-Backed - Credit Card—0.2%
CreditShop Credit Card Co. LLC 10.307%, 1M LIBOR + 8.000%, 10/15/22 (144A) (c)		4,732,650		4,768,145
Asset-Backed - Home Equity—0.3%
Asset-Backed Securities Corp. Home Equity Loan Trust 5.305%, 1M LIBOR + 2.850%, 04/15/33 (c)		390		392
Bear Stearns Asset-Backed Securities Trust 3.246%, 1M LIBOR + 0.740%, 01/25/34 (c)		12,298		11,740
EMC Mortgage Loan Trust 3.406%, 1M LIBOR + 0.900%, 05/25/43 (144A) (c)		178,674		176,860
Structured Asset Securities Corp. Mortgage Loan Trust 2.726%, 1M LIBOR + 0.220%, 02/25/36 (144A) (c)		2,602,771		128,451
WaMu Asset-Backed Certificates Trust 2.676%, 1M LIBOR + 0.170%, 07/25/47 (c)		9,739,919		7,538,164
				7,855,607

See accompanying notes to financial statements.

BHFTII-17

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Asset-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Asset-Backed - Manufactured Housing—0.2%
Origen Manufactured Housing Contract Trust 4.043%, 10/15/37 (c)		1,118,097	$	1,066,582
4.755%, 04/15/37 (c)		1,120,974		1,076,322
UCFC Manufactured Housing Contract 7.095%, 04/15/29 (c)		3,631,641		3,475,061
				5,617,965
Asset-Backed - Other—4.6%
AIMCO CLO 6.149%, 3M LIBOR + 3.680%, 07/20/29 (144A) (c)		6,750,000		6,550,328
Ammc CLO, Ltd. 8.259%, 3M LIBOR + 5.810%, 04/17/29 (144A) (c)		6,600,000		6,123,790
Amortizing Residential Collateral Trust 4.306%, 1M LIBOR + 1.800%, 08/25/32 (c)		23,169		20,952
Applebee’s Funding LLC / IHOP Funding LLC 4.277%, 09/05/44 (144A)		5,144,875		5,131,827
Ares CLO, Ltd. 8.986%, 3M LIBOR + 6.550%, 10/15/29 (144A) (c)		9,300,000		8,893,553
Avery Point VI CLO, Ltd. 5.532%, 3M LIBOR + 2.950%, 08/05/27 (144A) (c)		2,280,000		2,150,170
Barings CLO, Ltd. 9.895%, 3M LIBOR + 7.450%, 07/18/29 (144A) (c)		1,700,000		1,523,465
Bear Stearns Asset-Backed Securities Trust 6.000%, 10/25/36		1,620,981		1,218,106
BlueMountain CLO, Ltd. 8.395%, 3M LIBOR + 5.750%, 11/20/28 (144A) (c)		2,500,000		2,335,335
Carlyle U.S. CLO, Ltd. 6.169%, 3M LIBOR + 3.700%, 07/20/31 (144A) (c)		9,500,000		9,286,554
Catskill Park CLO, Ltd. 8.469%, 3M LIBOR + 6.000%, 04/20/29 (144A) (c)		7,600,000		7,049,008
Cent CLO 24, Ltd. 5.586%, 3M LIBOR + 3.150%, 10/15/26 (144A) (c)		5,240,000		4,969,585
Countrywide Asset-Backed Certificates Trust 4.381%, 1M LIBOR + 1.875%, 06/25/34 (c)		114,427		106,774
Countrywide Revolving Home Equity Loan Resecuritization Trust 2.755%, 1M LIBOR + 0.300%, 12/15/33 (144A) (c)		142,991		133,674
Countrywide Revolving Home Equity Loan Trust 2.595%, 1M LIBOR + 0.140%, 07/15/36 (c)		256,037		242,036
CVP CLO, Ltd. 5.119%, 3M LIBOR + 2.650%, 01/20/31 (144A) (c)		4,500,000		4,063,860
First Horizon Asset-Backed Trust 2.666%, 1M LIBOR + 0.160%, 10/25/34 (c)		340		338
Greenwood Park CLO, Ltd. 7.386%, 3M LIBOR + 4.950%, 04/15/31 (144A) (c)		7,380,000		6,427,840
LCM XXII, Ltd. 8.002%, 3M LIBOR + 5.500%, 10/20/28 (144A) (c)		5,000,000		4,657,125
Long Beach Mortgage Loan Trust 2.999%, 1M LIBOR + 0.520%, 01/21/31 (c)		15,554		15,148
Midocean Credit CLO VII 6.316%, 3M LIBOR + 3.880%, 07/15/29 (144A) (c)		4,000,000		3,867,516
Oaktree CLO, Ltd. 7.669%, 3M LIBOR + 5.200%, 10/20/27 (144A) (c)		5,500,000		4,967,160
Ocean Trails CLO 10.186%, 3M LIBOR + 7.750%, 07/15/28 (144A) (c)		5,120,000		5,119,524
Asset-Backed - Other—(Continued)
Ratchet Trading, Ltd. 15.190%, 01/26/27 (144A) (c)		1,831,243		1,849,823
SACO I Trust 2.846%, 1M LIBOR + 0.340%, 03/25/36 (c)		47,693		46,510
Saranac CLO III, Ltd. 6.074%, 3M LIBOR + 3.250%, 06/22/30 (144A) (c)		4,652,500		4,397,180
SBA Small Business Investment Cos. 2.845%, 03/10/27		4,075,805		4,077,923
SoFi Consumer Loan Program LLC 3.280%, 01/26/26 (144A)		2,298,935		2,297,789
TCI-Symphony CLO, Ltd. 5.436%, 3M LIBOR + 3.000%, 10/13/29 (144A) (c)		1,700,000		1,600,681
7.936%, 3M LIBOR + 5.500%, 10/13/29 (144A) (c)		5,150,000		4,799,630
Thayer Park CLO, Ltd. 8.569%, 3M LIBOR + 6.100%, 04/20/29 (144A) (c)		8,400,000		7,842,030
Treman Park CLO, Ltd. 5.115%, 3M LIBOR + 2.650%, 10/20/28 (144A) (c)		1,250,000		1,179,917
7.965%, 3M LIBOR + 5.500%, 10/20/28 (144A) (c)		1,750,000		1,592,922
Upgrade Pass-Through Trust 5.339%, 10/15/24 (144A)		1,776,096		1,790,715
12.075%, 09/15/24 (144A)		2,026,752		2,047,938
14.960%, 12/27/27 (144A) (c)		2,246,865		2,267,399
15.309%, 08/15/24 (144A)		2,392,375		2,417,370
15.498%, 06/15/24 (144A)		2,163,584		2,186,137
16.537%, 05/15/24 (144A)		2,068,492		2,090,006
Venture CLO, Ltd. 8.176%, 3M LIBOR + 5.740%, 04/15/27 (144A) (c)		4,000,000		3,670,472
Voya CLO, Ltd. 8.456%, 3M LIBOR + 6.020%, 06/07/30 (144A) (c)		3,500,000		3,245,550
WhiteHorse, Ltd. 6.076%, 3M LIBOR + 3.650%, 10/15/31 (144A) (c)		6,180,000		5,832,122
				140,085,782
Asset-Backed - Student Loan—0.0%
SoFi Professional Loan Program LLC Zero Coupon, 08/25/36 (144A)		500		1,064,323
Total Asset-Backed Securities (Cost $166,338,121)				159,391,822
Convertible Bonds—1.0%
Computers—0.0%
Western Digital Corp. 1.500%, 02/01/24		1,820,000		1,474,930
Internet—0.0%
Twitter, Inc. 1.000%, 09/15/21		1,170,000		1,067,076
Media—0.8%
DISH Network Corp.
2.375%, 03/15/24		5,890,000		4,689,418
3.375%, 08/15/26 (a)		3,090,000		2,495,224

See accompanying notes to financial statements.

BHFTII-18

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Convertible Bonds—(Continued)

Security Description	Principal Amount*/ Shares		Value
Media—(Continued)
Liberty Interactive LLC 1.750%, 09/30/46		2,590,000	$	2,648,146
Liberty Media Corp. 2.125%, 03/31/48 (144A)		7,700,000		7,200,424
2.250%, 12/01/48 (144A)		6,030,000		5,951,387
				22,984,599
Oil & Gas—0.1%
Chesapeake Energy Corp. 5.500%, 09/15/26 (a)		4,120,000		3,316,031
Pipelines—0.0%
Cheniere Energy, Inc. 4.250%, 03/15/45		2,020,000		1,405,112
Telecommunications—0.1%
GCI Liberty, Inc. 1.750%, 09/30/46		1,520,000		1,480,068
Total Convertible Bonds (Cost $35,273,222)				31,727,816
Convertible Preferred Stock—0.2%
Banks—0.2%
Wells Fargo & Co., Series L 7.500% (Cost $5,598,292)		4,965		6,265,681
Municipals—0.1%
Massachusetts State Development Finance Agency, Board Institute, Revenue Bond 5.375%, 04/01/41		400,000		431,216
Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds 5.000%, 12/15/30		750,000		809,243
5.000%, 12/15/31		1,550,000		1,669,427
Virginia Housing Development Authority 6.000%, 06/25/34		622,953		644,644
Total Municipals (Cost $3,503,109)				3,554,530
Preferred Stocks—0.1%
Banks—0.0%
Citigroup Capital 8.890%, 3M LIBOR + 6.370%, 10/30/40 (c)		51,160		1,352,159
Capital Markets—0.1%
B. Riley Financial, Inc. 6.875%, 09/30/23 (a)		64,075		1,478,851
Marine—0.0%
Tricer Tracking Preferred Equity Certificates (e) (h) (i) (n)		10,446,300		8,946
Total Preferred Stocks (Cost $3,776,699)				2,839,956
Common Stocks—0.1%
Air Freight & Logistics—0.0%
Ceva Logistics AG (n)		12,627		384,339
Diversified Consumer Services—0.0%
Ascent CNR Corp. - Class A (e) (n)		1,399,556		27,991
Marine—0.0%
Tricer Holdco SCA (e) (h) (i) (n)		211,536		26
Media—0.0%
Cengage Learning, Inc. (n)		10,995		43,980
ION Media Networks, Inc. (h) (n)		785		412,392
				456,372
Oil, Gas & Consumable Fuels—0.1%
Berry Petroleum Corp. (a)		166,055		1,452,981
Total Common Stocks (Cost $6,058,023)				2,321,709
Escrow Shares—0.0%
Energy Equipment & Services—0.0%
Hercules Offshore, Inc. (e) (h) (i)		10,611		9,622
Forest Products & Paper—0.0%
Sino-Forest Corp. (i)		1,246,000		0
Sino-Forest Corp. (i)		500,000		0
				0
Oil & Gas—0.0%
Berry Petroleum Co. LLC (e) (g) (h) (i)		850,000		0
Berry Petroleum Co. LLC (e) (g) (h) (i)		1,040,000		0
				0
Total Escrow Shares (Cost $463,409)				9,622

See accompanying notes to financial statements.

BHFTII-19

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Short-Term Investment—0.1%

Security Description	Principal Amount*		Value
Repurchase Agreement—0.1%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $3,167,377; collateralized by U.S. Treasury Note at 2.125%, maturing 11/30/23, with a market value of $3,232,201.		3,167,166	$	3,167,166
Total Short-Term Investments (Cost $3,167,166)				3,167,166
Securities Lending Reinvestments (o)—10.2%
Certificates of Deposit—6.4%
Banco Del Estado De Chile New York 2.695%, 1M LIBOR + 0.240%, 01/17/19 (c)		4,000,000		3,999,964
Bank of Montreal (Chicago) 2.710%, 1M LIBOR + 0.330%, 08/06/19 (c)		5,000,000		4,999,875
Bank of Nova Scotia 2.890%, SOFR + 0.430%, 05/16/19 (c)		5,000,000		4,999,996
3.072%, 3M LIBOR + 0.280%, 03/20/19 (c)		10,000,000		10,003,990
Barclays Bank plc 2.500%, 02/01/19		3,000,000		2,999,613
2.547%, 1M LIBOR + 0.200%, 02/04/19 (c)		10,000,000		9,999,050
Canadian Imperial Bank of Commerce 2.556%, 3M LIBOR + 0.120%, 01/14/19 (c)		5,000,000		4,999,360
2.740%, 1M LIBOR + 0.270%, 07/19/19 (c)		7,000,000		6,997,158
China Construction Bank Corp. 2.550%, 01/07/19		2,500,000		2,500,000
Citibank N.A. 2.490%, 02/04/19		5,000,000		4,999,305
Commonwealth Bank of Australia 2.617%, 3M LIBOR + 0.140%, 04/23/19 (c)		3,500,000		3,500,011
Credit Agricole S.A. 2.500%, 02/12/19		7,000,000		6,998,810
2.799%, 1M LIBOR + 0.320%, 05/21/19 (c)		5,000,000		5,000,315
Credit Industriel et Commercial Zero Coupon, 01/25/19		3,948,913		3,993,200
Credit Industriel et Commercial (NY) 2.629%, 1M LIBOR + 0.250%, 02/05/19 (c)		5,000,000		5,000,125
Credit Suisse AG 2.620%, 04/01/19		5,000,000		4,997,410
2.890%, SOFR + 0.430%, 05/02/19 (c)		2,000,000		1,999,976
Industrial & Commercial Bank of China, Ltd. 2.850%, 02/15/19		2,500,000		2,499,815
Mizuho Bank, Ltd., New York 2.649%, 1M LIBOR + 0.300%, 05/01/19 (c)		2,000,000		2,000,012
MUFG Bank Ltd. 2.649%, 1M LIBOR + 0.300%, 05/01/19 (c)		2,000,000		2,000,012
Natixis New York 2.705%, 3M LIBOR + 0.090%, 05/10/19 (c)		4,000,000		3,997,480
Royal Bank of Canada New York 2.665%, 1M LIBOR + 0.210%, 09/17/19 (c)		8,000,000		7,991,816
Skandinaviska Enskilda Banken 2.645%, 1M LIBOR + 0.190%, 04/17/19 (c)		7,000,000		6,999,426
Societe Generale 2.719%, 3M LIBOR + 0.160%, 05/07/19 (c)		4,000,000		3,998,224
Certificates of Deposit—(Continued)
Standard Chartered plc 2.686%, 1M LIBOR + 0.180%, 02/25/19 (c)		8,000,000		7,999,768
2.717%, 3M LIBOR + 0.230%, 04/24/19 (c)		5,000,000		4,998,910
State Street Bank and Trust 2.725%, 1M LIBOR + 0.270%, 05/15/19 (c)		7,000,000		6,999,860
Sumitomo Mitsui Banking Corp. 2.590%, 1M LIBOR + 0.190%, 04/11/19 (c)		10,000,000		9,996,330
Sumitomo Mitsui Banking Corp., New York 2.549%, 1M LIBOR + 0.200%, 04/03/19 (c)		2,000,059		1,999,408
Svenska Handelsbanken AB 2.620%, 3M LIBOR + 0.100%, 04/30/19 (c)		5,000,000		4,999,775
2.822%, 1M LIBOR + 0.300%, 10/31/19 (c)		2,000,000		1,999,532
Toronto-Dominion Bank 2.665%, 1M LIBOR + 0.210%, 09/17/19 (c)		6,000,000		5,994,288
U.S. Bank N.A. 2.764%, 1M LIBOR + 0.260%, 07/23/19 (c)		6,000,000		6,000,000
Wells Fargo Bank N.A. 2.560%, 3M LIBOR + 0.140%, 07/11/19 (c)		8,000,000		8,006,939
2.730%, 3M LIBOR + 0.210%, 10/25/19 (c)		4,000,000		4,000,000
Westpac Banking Corp. 2.850%, FEDEFF PRV + 0.450%, 02/15/19 (c)		12,500,000		12,499,921
				192,969,674
Commercial Paper—1.9%
Alpine Securities Ltd. 2.529%, 1M LIBOR + 0.180%, 04/03/19 (c)		4,000,000		3,998,892
Banco Santander S.A. 2.740%, 02/07/19		5,957,987		5,982,528
Bank of China, Ltd. 2.690%, 01/17/19		5,959,650		5,992,956
HSBC Bank plc 2.842%, 1M LIBOR + 0.320%, 07/30/19 (c)		3,000,000		3,000,000
ING Funding LLC 2.725%, 3M LIBOR + 0.110%, 05/10/19 (c)		10,000,000		9,998,820
Matchpoint Finance plc 2.890%, 05/08/19		4,927,349		4,946,265
Sheffield Receivables Co. 2.930%, SOFR + 0.470%, 05/30/19 (c)		5,000,000		4,999,920
Toronto-Dominion Bank 2.729%, 1M LIBOR + 0.350%, 11/05/19 (c)		7,000,000		6,999,230
UBS AG 2.779%, 1M LIBOR + 0.430%, 02/01/19 (c)		11,000,000		11,002,695
Westpac Banking Corp. 2.784%, 1M LIBOR + 0.280%, 05/24/19 (c)		2,000,000		1,999,920
				58,921,226
Master Demand Notes—0.3%
Natixis Financial Products LLC 2.640%, OBFR + 0.250%, 01/02/19 (c)		10,000,000		10,000,000
Repurchase Agreements—1.6%
Citadel Clearing LLC Repurchase Agreement dated 12/31/18 at 3.000%, due on 04/02/19 with a maturity value of $8,061,333; collateralized by various Common Stock with an aggregate market value of $8,801,467.		8,000,000		8,000,000

See accompanying notes to financial statements.

BHFTII-20

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (o)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Citigroup Global Markets, Inc. Repurchase Agreement dated 12/31/18 at 2.790%, due on 02/04/19 with a maturity value of $5,013,563; collateralized by U.S. Treasury Obligations at 0.000%, maturing 02/12/19, and various Common Stock with an aggregate market value of $5,441,594.		5,000,000	$	5,000,000
Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $2,015,027; collateralized by U.S. Treasury Obligations with rates ranging from 1.125% - 2.750%, maturity dates ranging from 01/31/19 - 08/15/24, and an aggregate market value of $2,040,000.		2,000,000		2,000,000
Citigroup Global Markets, Ltd. Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $200,028; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $204,000.		200,000		200,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $300,042; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $306,000.		300,000		300,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $3,658,471; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $3,730,977.		3,657,820		3,657,820
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.940%, due on 04/02/19 with a maturity value of $12,593,917; collateralized by various Common Stock with an aggregate market value of $13,750,000.		12,500,000		12,500,000
NBC Global Finance, Ltd. Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $2,000,284; collateralized by various Common Stock with an aggregate market value of $2,226,425.		2,000,000		2,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,000,142; collateralized by various Common Stock with an aggregate market value of $1,113,212.		1,000,000		1,000,000
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $10,705,326; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $11,721,592.		10,700,000		10,700,000
Repurchase Agreements—(Continued)
Societe Generale Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $3,001,493; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $3,286,428.		3,000,000		3,000,000
				48,357,820
Total Securities Lending Reinvestments (Cost $310,277,707)				310,248,720
Total Purchased Options—0.5% (p) (Cost $18,598,798)				14,891,942
Total Investments—108.2% (Cost $3,439,085,758)				3,287,108,821
Other assets and liabilities (net)—(8.2)%				(249,631,069	)
Net Assets—100.0%			$	3,037,477,752

*	Principal and notional amounts stated in U.S. dollars unless otherwise noted.
(a)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $337,359,259 and the collateral received consisted of cash in the amount of $310,151,778 andnon-cash collateral with a value of $40,824,067. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. Thenon-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this non-cash collateral is excluded from the Statement of Assets and Liabilities.
(b)	Payment-in-kind security for which part of the income earned may be paid as additional principal.
(c)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(d)	Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2018, the market value of restricted securities was $9,829,311, which is 0.3% of net assets. See details shown in the Restricted Securities table that follows.
(e)	Illiquid security. As of December 31, 2018, these securities represent 1.3% of net assets.
(f)	Security is a“step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(g)	Non-income producing; security is in default and/or issuer is in bankruptcy.
(h)	Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2018, these securities represent 0.6% of net assets.
(i)	Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.
(j)	Interest only security.

See accompanying notes to financial statements.

BHFTII-21

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

(k)	Floating rate loans (“Senior Loans”) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will have an expected average life of approximately two to four years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are determined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.
(l)	Principal amount of security is adjusted for inflation.
(m)	TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(n)	Non-income producing security.
(o)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(p)	For a breakout of open positions, see details shown in the Purchased Options table that follows.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $1,233,816,407, which is 40.6% of net assets.

Restricted Securities	Acquisition Date		Principal Amount		Cost		Value
Alta Wind Holdings LLC, 7.000%, 06/30/35		07/14/10	$	1,268,181	$	1,268,181	$	1,377,360
American Media LLC, 5.500%, 09/01/21		05/01/18		5,350,000		5,010,125		5,343,313
Bayview Commercial Asset Trust, Zero Coupon, 07/25/37		11/23/10		2,731,482		260,344		0
Countrywide Home Loan Reperforming Loan REMIC Trust, 3.881%, 03/25/35		01/08/15		5,316,367		774,196		556,172
Midwest Vanadium Pty, Ltd., 11.500%, 02/15/18		05/05/11-05/24/11		932,290		961,424		93
NSG Holdings LLC / NSG Holdings, Inc., 7.750%, 12/15/25		01/25/13		2,419,311		2,558,374		2,552,373
							$	9,829,311

Forward Foreign Currency Exchange Contracts

Contracts to Buy		Counterparty	Settlement Date		In Exchange for			Unrealized Appreciation/ (Depreciation)
ARS	232,614,000	CBNA		01/28/19		USD	7,104,887	$	(1,138,609	)
AUD	10,662,040	CBNA		01/10/19		USD	7,695,008		(184,028	)
AUD	10,160,000	CBNA		01/18/19		USD	7,280,798		(122,349	)
AUD	11,285,688	CBNA		01/18/19		USD	8,037,611		(86,033	)
BRL	4,549,893	BBP		01/18/19		USD	1,210,948		(38,211	)
BRL	14,740,000	BBP		01/18/19		USD	3,892,201		(92,962	)
BRL	8,290,000	JPMC		01/18/19		USD	2,188,201		(51,451	)
CAD	61,620,000	JPMC		01/18/19		USD	45,207,837		(52,702	)
EUR	8,792,500	JPMC		01/15/19		USD	10,255,572		(171,552	)
EUR	1,800,000	CBNA		01/18/19		USD	2,062,370		2,548
EUR	1,850,000	CBNA		01/18/19		USD	2,125,838		(3,561	)
EUR	2,000,000	CBNA		01/18/19		USD	2,268,016		26,337
EUR	5,570,000	CBNA		01/18/19		USD	6,315,728		74,045
EUR	9,230,000	CBNA		01/18/19		USD	10,500,933		87,507
EUR	33,890,000	JPMC		01/18/19		USD	38,371,105		506,709
EUR	17,470,000	JPMC		02/11/19		USD	20,239,432		(157,999	)
IDR	232,661,355,000	JPMC		01/18/19		USD	15,868,323		286,853
INR	491,838,000	BBP		01/18/19		USD	6,598,929		434,120
JPY	578,830,000	CBNA		01/18/19		USD	5,173,160		112,554
JPY	4,200,275,811	CBNA		01/18/19		USD	37,757,257		598,484
MXN	32,000,000	BBP		01/18/19		USD	1,592,234		32,628
MXN	36,000,000	BBP		01/18/19		USD	1,772,316		55,654
MXN	31,000,000	CBNA		01/18/19		USD	1,558,964		15,121
MXN	186,472,303	CBNA		01/18/19		USD	9,776,000		(307,506	)
MXN	404,448,000	CBNA		01/18/19		USD	19,683,725		852,909
MXN	35,000,000	JPMC		01/18/19		USD	1,715,678		61,515
PLN	63,703,719	BBP		01/18/19		USD	17,147,242		(120,882	)
RUB	13,134,950	CBNA		01/18/19		USD	198,942		(10,659	)
TWD	7,361,600	BBP		01/18/19		USD	238,765		1,048

See accompanying notes to financial statements.

BHFTII-22

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Forward Foreign Currency Exchange Contracts—(Continued)

Contracts to Deliver			Counterparty	Settlement Date		In Exchange for			Unrealized Appreciation/ (Depreciation)
ARS		307,962,000	BBP		02/15/19		USD	7,581,536	$	(136,395	)
ARS		303,380,000	CBNA		02/15/19		USD	7,459,094		(144,006	)
AUD		22,550,000	CBNA		01/18/19		USD	16,626,994		738,900
CAD		22,368,407	CBNA		01/18/19		USD	17,257,576		866,008
EUR		9,230,000	JPMC		01/15/19		USD	10,499,587		(86,198	)
EUR		1,900,000	BBP		01/18/19		USD	2,194,870		15,235
EUR		30,140,000	CBNA		01/18/19		USD	35,135,102		559,200
EUR		21,350,000	CBNA		01/18/19		USD	24,672,338		180,118
EUR		6,750,000	CBNA		01/18/19		USD	7,750,397		6,955
EUR		3,200,000	CBNA		01/18/19		USD	3,655,568		(15,397	)
EUR		2,300,000	CBNA		01/18/19		USD	2,626,336		(12,170	)
EUR		1,900,000	CBNA		01/18/19		USD	2,189,806		10,170
EUR		1,800,000	CBNA		01/18/19		USD	2,066,967		2,049
EUR		50,925,734	JPMC		01/18/19		USD	59,547,537		1,126,728
EUR		19,537,000	CBNA		02/11/19		USD	22,159,061		(298,349	)
GBP		19,671,833	CBNA		01/18/19		USD	26,115,735		1,023,428
IDR		118,086,649,172	BBP		01/18/19		USD	7,754,574		(444,943	)
JPY		1,661,259,000	CBNA		01/18/19		USD	14,663,904		(506,248	)
MXN		56,000,000	BBP		01/18/19		USD	2,763,140		(80,369	)
MXN		54,000,000	CBNA		01/18/19		USD	2,807,018		65,062
MXN		53,000,000	CBNA		01/18/19		USD	2,578,962		(112,216	)
MXN		52,000,000	CBNA		01/18/19		USD	2,636,930		(3,471	)
MXN		32,000,000	CBNA		01/18/19		USD	1,569,820		(55,042	)
MXN		41,000,000	JPMC		01/18/19		USD	1,995,649		(86,206	)
MXN		30,000,000	JPMC		01/18/19		USD	1,506,493		(16,815	)
MXN	��	406,695,420	CBNA		02/05/19		USD	19,720,000		(870,818	)
NZD		7,900,000	JPMC		01/18/19		USD	5,209,481		(94,377	)
PHP		903,278,000	BBP		01/18/19		USD	16,454,350		(698,604	)
PHP		724,945,494	DBAG		02/15/19		USD	13,346,444		(385,674	)
PHP		360,669,400	DBAG		02/15/19		USD	6,626,298		(205,602	)
PHP		360,669,400	DBAG		02/15/19		USD	6,616,573		(215,326	)
PHP		357,062,706	DBAG		02/15/19		USD	6,539,610		(223,971	)
PLN		63,700,000	CBNA		01/18/19		USD	16,936,084		(89,282	)
SEK		48,435,647	CBNA		01/18/19		USD	5,431,144		(40,643	)
TRY		2,193,900	CBNA		01/18/19		USD	340,826		(70,060	)
ZAR		198,594	CBNA		01/18/19		USD	13,264		(515	)
Net Unrealized Appreciation									$	310,684

Futures Contracts

Futures Contracts—Long	Expiration Date		Number of Contracts			Notional Value				Value/ Unrealized Appreciation/ (Depreciation)
90 Day Eurodollar Futures		12/16/19		1,244			USD	302,758,500		$	362,235
90 Day Eurodollar Futures		06/15/20		3,478			USD	847,805,975			1,211,039
Euro-BTP Futures		03/07/19		141			EUR	18,022,620			1,366,685
U.S. Treasury Note 10 Year Futures		03/20/19		6,085			USD	742,465,078			18,158,157
U.S. Treasury Note 2 Year Futures		03/29/19		221			USD	46,921,063			320,008
U.S. Treasury Note Ultra 10 Year Futures		03/20/19		97			USD	12,617,578			402,013
U.S. Treasury Ultra Long Bond Futures		03/20/19		1,263			USD	202,908,844			10,034,119
Futures Contracts—Short
Euro-Bund Futures		03/07/19		(3,127	)		EUR	(511,389,580	)		(8,075,223	)
Euro-Buxl 30 Year Bond Futures		03/07/19		(28	)		EUR	(5,057,360	)		(80,882	)

See accompanying notes to financial statements.

BHFTII-23

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Futures Contracts—(Continued)

Futures Contracts—Short	Expiration Date		Number of Contracts			Notional Value				Value/ Unrealized Appreciation/ (Depreciation)
U.S. Treasury Long Bond Futures		03/20/19		(318	)		USD	(46,428,000	)	$	(1,986,611	)
U.S. Treasury Note 5 Year Futures		03/29/19		(1,985	)		USD	(227,654,688	)		(3,930,088	)
Net Unrealized Appreciation										$	17,781,452

Purchased Options

Foreign Currency Options	Strike Price			Counterparty	Expiration Date		Number of Contracts		Notional Amount			Premiums Paid		Market Value		Unrealized Appreciation/ (Depreciation)
USD Call/AUD Put		AUD	0.722	CBNA		01/08/19		16,450,000		USD	16,450,000	$	172,890	$	392,119	$	219,229
USD Call/EUR Put		EUR	1.148	JPMC		01/11/19		35,170,000		USD	35,170,000		311,753		194,807		(116,946	)
USD Call/EUR Put		EUR	1.140	JPMC		02/07/19		68,960,000		USD	68,960,000		583,953		411,898		(172,055	)
USD Put/GBP Call		GBP	1.317	CBNA		01/28/19		24,700,000		USD	24,700,000		251,199		86,203		(164,996	)
USD Put/MXN Call		MXN	20.000	CBNA		01/31/19		31,960,000		USD	31,960,000		516,473		739,458		222,985
Totals												$	1,836,268	$	1,824,485	$	(11,783	)

Interest Rate Swaptions

Strike Rate

Counterparty

Floating Rate Index

Pay/ Receive Floating Rate

Expiration Date

Number of Contracts

Notional Amount

Premiums Paid

Market Value

Unrealized Depreciation

Put - OTC - 5 Year Interest Rate Swap

3.150

%

BOA

3M LIBOR

Receive

02/02/23

271,800,000

USD

271,800,000

$

13,943,340

$

10,554,834

$

(3,388,506

)

Options on Exchange-Traded Future Contracts	Strike Price			Expiration Date		Number of Contracts		Notional Amount			Premiums Paid		Market Value		Unrealized Appreciation/ (Depreciation)
Put - S&P 500 IndexE-Mini Futures		USD	2,400.000		01/18/19		1,240		USD	62,000	$	1,248,554	$	1,441,500	$	192,946
Put - S&P 500 IndexE-Mini Futures		USD	2,450.000		01/18/19		273		USD	13,650		331,586		477,750		146,164
Put - S&P 500 IndexE-Mini Futures		USD	2,300.000		02/15/19		391		USD	19,550		959,909		493,637		(466,272	)
Put - U.S. Treasury Note 5 Year Futures		USD	113.000		01/25/19		503		USD	503,000		71,605		11,790		(59,815	)
Put - U.S. Treasury Note 5 Year Futures		USD	112.000		01/25/19		257		USD	257,000		42,609		2,008		(40,601	)
Put - U.S. Treasury Note 10 Year Futures		USD	121.000		01/25/19		500		USD	500,000		164,927		85,938		(78,989	)
Totals											$	2,819,190	$	2,512,623	$	(306,567	)

Written Options

Foreign Currency Options	Strike Price			Counterparty	Expiration Date		Number of Contracts			Notional Amount				Premiums Received			Market Value			Unrealized Appreciation
USD Call/EUR Put		USD	1.127	JPMC		01/11/19		(33,564,000	)		USD	(33,564,000	)	$	(153,958	)	$	(18,796	)	$	135,162
USD Call/EUR Put		USD	1.121	CBNA		02/07/19		(68,960,000	)		USD	(68,960,000	)		(434,448	)		(135,231	)		299,217
USD Call/MXN Put		USD	21.500	CBNA		01/31/19		(31,960,000	)		USD	(31,960,000	)		(555,145	)		(33,366	)		521,779
Totals														$	(1,143,551	)	$	(187,393	)	$	956,158

Options on Exchange-Traded Futures Contracts	Strike Price		Expiration Date		Number of Contracts			Notional Amount				Premiums Received			Market Value			Unrealized Appreciation/ (Depreciation)
Call - U.S. Treasury Note5-Year Futures		USD     114.250		01/25/19		(503	)		USD	(503,000	)	$	(69,864	)	$	(298,656	)	$	(228,792	)
Put - S&P 500 IndexE-Mini Futures		USD  2,300.000		01/18/19		(40	)		USD	(2,000	)		(9,916	)		(19,500	)		(9,584	)
Put - S&P 500 IndexE-Mini Futures		USD  2,100.000		02/15/19		(391	)		USD	(19,550	)		(348,966	)		(151,513	)		197,453
Totals												$	(428,746	)	$	(469,669	)	$	(40,923	)

See accompanying notes to financial statements.

BHFTII-24

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Swap Agreements

Centrally Cleared Interest Rate Basis Swaps

Floating Rate Index Paid

Payment Frequency

Floating Rate Index Received

Payment Frequency

Maturity Date

Notional Amount

Market Value

Upfront Premium Received

Unrealized Appreciation

3M LIBOR

Quarterly

FEDL01 + 0.310

%

Quarterly

03/20/24

USD    334,344,000

$

779,302

$

10,448

$

768,854

Centrally Cleared Interest Rate Swaps

Pay/Receive Floating Rate	Floating Rate Index	Payment Frequency	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Market Value			Upfront Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)
Pay	1M TIIE	Monthly		7.330	%	Monthly		04/06/22		MXN	3,542,500,000	$	(6,485,262	)	$	(85,736	)	$	(6,399,526	)
Pay	1M TIIE	Monthly		7.351	%	Monthly		04/05/21		MXN	5,174,130,000		(6,870,175	)		(40,305	)		(6,829,870	)
Pay	3M LIBOR	Quarterly		3.150	%	Semi-Annually		02/06/33		USD	119,590,000		1,942,454			—			1,942,454
Pay	3M LIBOR	Quarterly		3.230	%	Semi-Annually		12/18/21		USD	120,386,000		1,600,165			186,517			1,413,648
Receive	3M LIBOR	Annually		1.385	%	Annually		10/30/21		GBP	158,777,000		(239,821	)		(54,499	)		(185,322	)
Receive	3M LIBOR	Semi-Annually		3.300	%	Quarterly		12/18/29		USD	26,563,000		(1,228,893	)		(134,643	)		(1,094,250	)
Receive	6M EURIBOR	Annually		1.498	%	Semi-Annually		08/23/47		EUR	4,537,500		(146,983	)		(5,233	)		(141,750	)
Receive	6M LIBOR	Semi-Annually		1.271	%	Semi-Annually		10/26/21		GBP	32,768,000		(3,921	)		14,998			(18,919	)
Totals												$	(11,432,436	)	$	(118,901	)	$	(11,313,535	)

Centrally Cleared Credit Default Swaps on Credit Indices—Buy Protection (a)

Reference Obligation	Fixed Deal (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(b)			Notional Amount(c)			Market Value			Upfront Premiums Received			Unrealized Appreciation
CDX.NA.HY.31		(5.000	%)		Quarterly		12/20/23		0.000	%		USD	56,330,000	$	(1,122,826	)	$	(3,896,488	)	$	2,773,662

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (d)

Reference Obligation	Fixed Deal Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(b)			Notional Amount(c)			Market Value		Upfront Premiums Paid		Unrealized Depreciation
CDX.NA.IG.31		1.000	%		Quarterly		12/20/23		0.000	%		USD	239,100,000	$	1,327,244	$	2,283,366	$	(956,122	)

OTC Credit Default Swaps on Sovereign Issues—Buy Protection (a)

Reference Obligation	Fixed Deal (Pay) Rate			Payment Frequency		Maturity Date		Counterparty		Implied Credit Spread at December 31, 2018(b)			Notional Amount(c)			Market Value			Upfront Premium (Received)			Unrealized Appreciation
Australia Government International Bond 4.750%, due 04/27/21		(1.000	%)		Quarterly		06/20/23		DBAG		0.224	%		USD	32,280,000	$	(1,061,993	)	$	(1,289,612	)	$	227,619

Securities in amount of $11,849,227 have been received at the custodian bank as collateral for foreign currency contracts and OTC swap contracts.

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

See accompanying notes to financial statements.

BHFTII-25

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

(b)	Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c)	The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(d)	If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Glossary of Abbreviations

Counterparties

(BOA)—	Bank of America N.A.
(BBP)—	Barclays Bank plc
(CBNA)—	Citibank N.A.
(DBAG)—	Deutsche Bank AG
(JPMC)—	JPMorgan Chase Bank N.A.

Currencies

(ARS)—	Argentine Peso
(AUD)—	Australian Dollar
(BRL)—	Brazilian Real
(CAD)—	Canadian Dollar
(EUR)—	Euro
(GBP)—	British Pound
(IDR)—	Indonesian Rupiah
(INR)—	Indian Rupee
(JPY)—	Japanese Yen
(MXN)—	Mexican Peso
(NZD)—	New Zealand Dollar
(PHP)—	Philippine Peso
(PLN)—	Polish Zloty
(RUB)—	Russian Ruble
(SEK)—	Swedish Krona
(TRY)—	Turkish Lira
(TWD)—	Taiwanese Dollar
(USD)—	United States Dollar
(ZAR)—	South African Rand

Index Abbreviations

(CDX.NA.HY)—		Markit North America High Yield CDS Index
(CDX.NA.IG)—		Markit North America Investment Grade CDS Index
(CMT)—		U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index
(COFI)—		11th District Cost of Funds Index
(EURIBOR)—		Euro InterBank Offered Rate
(FEDEFF PRV)—		Effective Federal Funds Rate
(FEDL01)—	Federal Funds Rate
(ICE)—	Intercontinental Exchange, Inc.
(LIBOR)—	London Interbank Offered Rate
(OBFR)—	U.S. Overnight Bank Funding Rate
(SOFR)—	Secured Overnight Financing Rate
(TIIE)—	Mexican Interbank Equilibrium Interest Rate

Other Abbreviations

(ARM)—	Adjustable-Rate Mortgage
(CLO)—	Collateralized Loan Obligation
(CMO)—	Collateralized Mortgage Obligation
(CDS)—	Credit Default Swap
(REMIC)—	Real Estate Mortgage Investment Conduit

See accompanying notes to financial statements.

BHFTII-26

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1		Level 2		Level 3		Total
Corporate Bonds & Notes
Aerospace/Defense	$	—	$	22,462,402	$	—	$	22,462,402
Agriculture		—		3,277,069		—		3,277,069
Airlines		—		1,684,227		—		1,684,227
Apparel		—		15,529,797		—		15,529,797
Auto Manufacturers		—		27,575,872		—		27,575,872
Auto Parts & Equipment		—		10,272,152		—		10,272,152
Banks		—		288,560,029		—		288,560,029
Beverages		—		5,355,070		—		5,355,070
Biotechnology		—		7,071,718		—		7,071,718
Building Materials		—		9,893,302		—		9,893,302
Chemicals		—		5,691,018		—		5,691,018
Commercial Services		—		41,352,375		—		41,352,375
Computers		—		12,994,699		—		12,994,699
Diversified Financial Services		—		62,190,466		—		62,190,466
Electric		—		49,092,546		—		49,092,546
Energy-Alternate Sources		—		1,377,360		—		1,377,360
Entertainment		—		20,361,294		—		20,361,294
Environmental Control		—		1,309,535		—		1,309,535
Food		—		9,352,954		—		9,352,954
Forest Products & Paper		—		4,284,000		—		4,284,000
Healthcare-Products		—		18,304,341		—		18,304,341
Healthcare-Services		—		52,029,697		—		52,029,697
Holding Companies-Diversified		—		3,388,179		—		3,388,179
Home Builders		—		15,574,125		—		15,574,125
Housewares		—		1,724,254		—		1,724,254
Insurance		—		24,723,822		—		24,723,822
Internet		—		27,555,422		—		27,555,422
Iron/Steel		—		13,526,100		—		13,526,100
Leisure Time		—		26,949,227		—		26,949,227
Lodging		—		27,058,489		—		27,058,489
Machinery-Diversified		—		6,645,750		—		6,645,750
Media		—		151,945,074		—		151,945,074
Mining		—		95,449,479		—		95,449,479
Miscellaneous Manufacturing		—		12,227,141		—		12,227,141
Oil & Gas		—		179,487,393		—		179,487,393
Oil & Gas Services		—		3,075,000		—		3,075,000
Packaging & Containers		—		20,018,235		—		20,018,235
Pharmaceuticals		—		100,671,411		18,677,327		119,348,738
Pipelines		—		121,802,220		—		121,802,220
Real Estate		—		9,233,344		—		9,233,344
Real Estate Investment Trusts		—		23,801,584		—		23,801,584

See accompanying notes to financial statements.

BHFTII-27

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1			Level 2			Level 3		Total
Retail	$	—		$	33,620,153		$	—	$	33,620,153
Savings & Loans		—			9,708,511			—		9,708,511
Semiconductors		—			4,193,601			—		4,193,601
Software		—			13,553,847			—		13,553,847
Telecommunications		—			111,788,922			—		111,788,922
Transportation		—			37,869,741			—		37,869,741
Trucking & Leasing		—			18,582,400			—		18,582,400
Water		—			3,312,770			—		3,312,770
Total Corporate Bonds & Notes		—			1,767,508,117			18,677,327		1,786,185,444
Total Mortgage-Backed Securities*		—			274,256,296			—		274,256,296
Total Floating Rate Loans*		—			260,676,064			—		260,676,064
Total Foreign Government*		—			248,671,581			—		248,671,581
Total U.S. Treasury & Government Agencies*		—			182,900,472			—		182,900,472
Total Asset-Backed Securities*		—			159,391,822			—		159,391,822
Total Convertible Bonds*		—			31,727,816			—		31,727,816
Total Convertible Preferred Stock*		6,265,681			—			—		6,265,681
Total Municipals		—			3,554,530			—		3,554,530
Preferred Stocks
Banks		1,352,159			—			—		1,352,159
Capital Markets		1,478,851			—			—		1,478,851
Marine		—			—			8,946		8,946
Total Preferred Stocks		2,831,010			—			8,946		2,839,956
Common Stocks
Air Freight & Logistics		384,339			—			—		384,339
Diversified Consumer Services		—			27,991			—		27,991
Marine		—			—			26		26
Media		—			456,372			—		456,372
Oil, Gas & Consumable Fuels		1,452,981			—			—		1,452,981
Total Common Stocks		1,837,320			484,363			26		2,321,709
Total Escrow Shares*		—			—			9,622		9,622
Total Short-Term Investment*		—			3,167,166			—		3,167,166
Total Securities Lending Reinvestments*		—			310,248,720			—		310,248,720
Purchased Options
Foreign Currency Options at Value		—			1,824,485			—		1,824,485
Interest Rate Swaptions at Value		—			10,554,834			—		10,554,834
Options on Exchange-Traded Futures Contracts at Value		2,512,623			—			—		2,512,623
Total Purchased Options		2,512,623			12,379,319			—		14,891,942
Total Investments	$	13,446,634		$	3,254,966,266		$	18,695,921	$	3,287,108,821
Collateral for Securities Loaned (Liability)	$	—		$	(310,151,778	)	$	—	$	(310,151,778	)
Forward Contracts
Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)	$	—		$	7,741,885		$	—	$	7,741,885
Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)		—			(7,431,201	)		—		(7,431,201	)
Total Forward Contracts	$	—		$	310,684		$	—	$	310,684
Futures Contracts
Futures Contracts (Unrealized Appreciation)	$	31,854,256		$	—		$	—	$	31,854,256
Futures Contracts (Unrealized Depreciation)		(14,072,804	)		—			—		(14,072,804	)
Total Futures Contracts	$	17,781,452		$	—		$	—	$	17,781,452
Written Options
Foreign Currency Options at Value	$	—		$	(187,393	)	$	—	$	(187,393	)
Options on Exchange-Traded Futures Contracts at Value		(469,669	)		—			—		(469,669	)
Total Written Options	$	(469,669	)	$	(187,393	)	$	—	$	(657,062	)

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Schedule of Investments as of December 31, 2018

Fair Value Hierarchy—(Continued)

Description	Level 1		Level 2			Level 3		Total
Centrally Cleared Swap Contracts
Centrally Cleared Swap Contracts (Unrealized Appreciation)	$	—	$	6,898,618		$	—	$	6,898,618
Centrally Cleared Swap Contracts (Unrealized Depreciation)		—		(15,625,759	)		—		(15,625,759	)
Total Centrally Cleared Swap Contracts	$	—	$	(8,727,141	)	$	—	$	(8,727,141	)
OTC Swap Contracts
OTC Swap Contracts at Value (Liabilities)	$	—	$	(1,061,993	)	$	—	$	(1,061,993	)
Total OTC Swap Contracts	$	—	$	(1,061,993	)	$	—	$	(1,061,993	)

* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2018 is not presented.

Transfers from Level 3 to Level 2 in the amount of $3,908,914 were due to the initiation of a vendor or broker providing prices based on market indications which have been determined to be significant observable inputs.

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	3,287,108,821
Cash		1,115,427
Cash denominated in foreign currencies (c)		22,022,900
Cash collateral (d)		34,804,415
Unrealized appreciation on forward foreign currency exchange contracts		7,741,885
Receivable for:
Investments sold		1,535,750
Fund shares sold		26,273
Principal paydowns		10,229
Dividends and interest		37,411,563
Variation margin on futures contracts		4,465,947
Variation margin on centrally cleared swap contracts		405,457
Prepaid expenses		8,715
Other assets		5,620
Total Assets		3,396,663,002
Liabilities
Written options at value (e)		657,062
OTC swap contracts at market value (f)		1,061,993
Cash collateral for centrally cleared swap contracts		1,967
Unrealized depreciation on forward foreign currency exchange contracts		7,431,201
Collateral for securities loaned		310,151,778
Payables for:
Investments purchased		11,407,975
TBA securities purchased		21,570,938
Fund shares redeemed		4,475,843
Interest on OTC swap contracts		10,760
Accrued Expenses:
Management fees		1,334,158
Distribution and service fees		201,714
Deferred trustees’ fees		267,134
Other expenses		612,727
Total Liabilities		359,185,250
Net Assets	$	3,037,477,752
Net Assets Consist of:
Paid in surplus	$	3,201,494,764
Distributable earnings (Accumulated losses)		(164,017,012	)
Net Assets	$	3,037,477,752
Net Assets
Class A	$	2,006,843,596
Class B		802,588,974
Class E		228,045,182
Capital Shares Outstanding*
Class A		158,246,600
Class B		63,845,769
Class E		18,080,608
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	12.68
Class B		12.57
Class E		12.61

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $3,439,085,758.
(b)	Includes securities loaned at value of $337,359,259.
(c)	Identified cost of cash denominated in foreign currencies was $21,865,442.
(d)	Includes collateral of $20,330,339 for futures contracts, $3,070,000 for OTC swap, options and forward foreign currency contracts and $11,404,076 for centrally cleared swap contracts.
(e)	Premiums received on written options were $1,572,297.
(f)	Net premium received on OTC swap contracts was $1,289,612.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Dividends	$	1,295,393
Interest (a)		190,376,053
Securities lending income		2,047,457
Total investment income		193,718,903
Expenses
Management fees		18,654,367
Administration fees		116,356
Custodian and accounting fees		460,025
Distribution and service fees—Class B		2,174,108
Distribution and service fees—Class E		375,478
Audit and tax services		102,406
Legal		45,116
Trustees’ fees and expenses		33,732
Shareholder reporting		280,397
Insurance		21,620
Miscellaneous		43,384
Total expenses		22,306,989
Less management fee waiver		(1,875,595	)
Net expenses		20,431,394
Net Investment Income		173,287,509
Net Realized and Unrealized Loss
Net realized gain (loss) on:
Investments		(48,240,104	)
Purchased options		(18,863,939	)
Futures contracts		(37,355,741	)
Written options		6,677,262
Swap contracts		8,835,920
Foreign currency transactions		(3,784,934	)
Forward foreign currency transactions		(7,100,656	)
Net realized loss		(99,832,192	)
Net change in unrealized appreciation (depreciation) on:
Investments		(210,171,379	)
Purchased options		(3,713,470	)
Futures contracts		16,462,177
Written options		507,260
Swap contracts		(12,203,817	)
Foreign currency transactions		521,003
Forward foreign currency transactions		4,641,751
Net change in unrealized depreciation		(203,956,475	)
Net realized and unrealized loss		(303,788,667	)
Net Decrease in Net Assets From Operations	$	(130,501,158	)

(a) Net of foreign withholding taxes of $423,086.

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	173,287,509		$	168,174,305
Net realized gain (loss)		(99,832,192	)		75,706,129
Net change in unrealized appreciation (depreciation)		(203,956,475	)		27,894,144
Increase (decrease) in net assets from operations		(130,501,158	)		271,774,578
From Distributions to Shareholders (a)
Class A		(117,171,030	)		(89,784,446	)
Class B		(44,827,471	)		(34,541,744	)
Class E		(13,064,427	)		(10,698,139	)
Total distributions		(175,062,928	)		(135,024,329	)
Decrease in net assets from capital share transactions		(150,812,214	)		(83,242,812	)
Total increase (decrease) in net assets		(456,376,300	)		53,507,437
Net Assets
Beginning of period		3,493,854,052			3,440,346,615
End of period	$	3,037,477,752		$	3,493,854,052	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		3,007,055		$	40,426,096			4,556,098		$	62,834,363
Reinvestments		9,139,706			117,171,030			6,616,393			89,784,446
Redemptions		(19,372,540	)		(254,024,698	)		(12,851,341	)		(176,839,518	)
Net decrease		(7,225,779	)	$	(96,427,572	)		(1,678,850	)	$	(24,220,709	)
Class B
Sales		4,583,773		$	60,367,407			3,747,478		$	51,151,945
Reinvestments		3,521,404			44,827,471			2,564,346			34,541,744
Redemptions		(10,807,184	)		(140,943,216	)		(8,345,194	)		(113,982,456	)
Net decrease		(2,702,007	)	$	(35,748,338	)		(2,033,370	)	$	(28,288,767	)
Class E
Sales		1,048,477		$	13,822,436			741,587		$	10,138,146
Reinvestments		1,023,858			13,064,427			791,868			10,698,139
Redemptions		(3,468,938	)		(45,523,167	)		(3,766,714	)		(51,569,621	)
Net decrease		(1,396,603	)	$	(18,636,304	)		(2,233,259	)	$	(30,733,336	)
Decrease derived from capital shares transactions				$	(150,812,214	)				$	(83,242,812	)

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $175,786,467 as of December 31, 2017.

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	13.93		$	13.40		$	12.53		$	13.43		$	13.45
Income (Loss) from Investment Operations
Net investment income (a)		0.71			0.67			0.62	(b)		0.59			0.64
Net realized and unrealized gain (loss)		(1.23	)		0.41			0.45			(0.80	)		0.09
Total income (loss) from investment operations		(0.52	)		1.08			1.07			(0.21	)		0.73
Less Distributions
Distributions from net investment income		(0.73	)		(0.55	)		(0.20	)		(0.69	)		(0.75	)
Total distributions		(0.73	)		(0.55	)		(0.20	)		(0.69	)		(0.75	)
Net Asset Value, End of Period	$	12.68		$	13.93		$	13.40		$	12.53		$	13.43
Total Return (%) (c)		(3.80	)		8.23			8.55			(1.72	)		5.47
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.60			0.59			0.60			0.63			0.65
Net ratio of expenses to average net assets (%) (d)		0.54			0.54			0.54			0.59			0.61
Ratio of net investment income to average net assets (%)		5.33			4.88			4.74	(b)		4.51			4.77
Portfolio turnover rate (%)		90	(e)		139	(e)		86			99	(e)		98	(e)
Net assets, end of period (in millions)	$	2,006.8		$	2,305.0		$	2,239.2		$	1,070.0		$	982.6
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	13.81		$	13.29		$	12.46		$	13.35		$	13.37
Income (Loss) from Investment Operations
Net investment income (a)		0.67			0.63			0.58	(b)		0.56			0.61
Net realized and unrealized gain (loss)		(1.22	)		0.41			0.45			(0.80	)		0.08
Total income (loss) from investment operations		(0.55	)		1.04			1.03			(0.24	)		0.69
Less Distributions
Distributions from net investment income		(0.69	)		(0.52	)		(0.20	)		(0.65	)		(0.71	)
Total distributions		(0.69	)		(0.52	)		(0.20	)		(0.65	)		(0.71	)
Net Asset Value, End of Period	$	12.57		$	13.81		$	13.29		$	12.46		$	13.35
Total Return (%) (c)		(4.02	)		7.93			8.30			(2.00	)		5.29
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.85			0.85			0.85			0.88			0.90
Net ratio of expenses to average net assets (%) (d)		0.79			0.79			0.79			0.84			0.86
Ratio of net investment income to average net assets (%)		5.08			4.63			4.43	(b)		4.25			4.53
Portfolio turnover rate (%)		90	(e)		139	(e)		86			99	(e)		98	(e)
Net assets, end of period (in millions)	$	802.6		$	919.1		$	911.7		$	189.9		$	220.7

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

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Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Financial Highlights

Selected per share data
	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	13.85		$	13.33		$	12.48		$	13.38		$	13.39
Income (Loss) from Investment Operations
Net investment income (a)		0.68			0.65			0.59	(b)		0.57			0.62
Net realized and unrealized gain (loss)		(1.21	)		0.40			0.46			(0.81	)		0.09
Total income (loss) from investment operations		(0.53	)		1.05			1.05			(0.24	)		0.71
Less Distributions
Distributions from net investment income		(0.71	)		(0.53	)		(0.20	)		(0.66	)		(0.72	)
Total distributions		(0.71	)		(0.53	)		(0.20	)		(0.66	)		(0.72	)
Net Asset Value, End of Period	$	12.61		$	13.85		$	13.33		$	12.48		$	13.38
Total Return (%) (c)		(3.92	)		7.98			8.47			(1.90	)		5.40
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.75			0.75			0.75			0.78			0.80
Net ratio of expenses to average net assets (%) (d)		0.69			0.69			0.69			0.74			0.76
Ratio of net investment income to average net assets (%)		5.18			4.73			4.52	(b)		4.35			4.63
Portfolio turnover rate (%)		90	(e)		139	(e)		86			99	(e)		98	(e)
Net assets, end of period (in millions)	$	228.0		$	269.8		$	289.4		$	50.8		$	59.5

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Net investment income per share and the ratio of net investment income to average net assets include anon-recurring refund for overbilling of prior years’ custodianout-of-pocket fees which amounted to less than $0.01 per share and 0.02% of average net assets, respectively.
(c)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(e)	Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 56%, 79%, 71%, 57% and 62% for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively.

See accompanying notes to financial statements.

BHFTII-33

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Western Asset Management Strategic Bond Opportunities Portfolio (the “Portfolio”), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic 820—Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to the authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued on the basis of evaluated or composite bid quotations obtained from pricing services selected by the Adviser pursuant to authorization of and subject to general oversight by the Board. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or

BHFTII-34

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Foreign currency forward contracts are valued through an independent pricing service by interpolating between forward and spot currency rates in the London foreign exchange markets as of a designated hour on a valuation day. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

Options, including options on swaps (“swaptions”), currencies, and futures contracts that are traded OTC are generally valued on the basis of interdealer bid and ask prices or prices provided by pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) aremarked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or a pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third-party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s Custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the Custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

BHFTII-35

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation -The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders -The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus.Book-tax differences are primarily due to expired capital loss carryforward. These adjustments have no impact on net assets or the results of operations.

Income Taxes -It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Mortgage Dollar Rolls- The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sellsto-be-announced (“TBA”) mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

Mortgage-Related and Other Asset-Backed Securities - The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the

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IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

TBA Purchase and Forward Sale Commitments -The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

When-Issued and Delayed-Delivery Securities- The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s Custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

High-Yield Debt Securities - The Portfolio may invest in high-yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high-yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high-yield debt securities are generally less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights ofset-off against the borrower. The Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments, it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

The Portfolio will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling the participation, the Portfolio may be treated as a general creditor of the lender and may not benefit from anyset-off between the lender and the borrower.

Repurchase Agreements -The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

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At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $3,167,166. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $48,357,820. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Common Stocks	$	(689,579	)	$	—	$	—	$	—	$	(689,579	)
Convertible Bonds		(1,109,440	)		—		—		—		(1,109,440	)
Corporate Bonds & Notes		(280,260,646	)		—		—		—		(280,260,646	)
Foreign Government		(23,614,811	)		—		—		—		(23,614,811	)
Mortgage-Backed Securities		(4,446,019	)		—		—		—		(4,446,019	)
Preferred Stocks		(31,283	)		—		—		—		(31,283	)
Total	$	(310,151,778	)	$	—	$	—	$	—	$	(310,151,778	)
Total Borrowings	$	(310,151,778	)	$	—	$	—	$	—	$	(310,151,778	)
Gross amount of recognized liabilities for securities lending transactions										$	(310,151,778	)

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign

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currency for an agreed-upon price on an agreed-upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the valuation date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio may also experience losses even when such contracts are used for hedging purposes. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts -The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

Options Contracts -An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain investment exposure to a target asset class or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option is worthless when it expires and the premium paid for the option is considered a realized loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which aremarked-to-market daily. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing

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sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received by the Portfolio for a written option is recorded as an asset and an equivalent liability. The liability is subsequentlymarked-to-market to reflect the current value of the option written. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received by the Portfolio is offset against the amount paid for the purchase of the underlying instrument.

Options on Exchange-Traded Futures Contract (“Futures Option”) is an option contract in which the underlying instrument is a single futures contract.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swaptions are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement at any time before the expiration of the option.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are either privately negotiated in the OTC market (“OTC swaps”) or executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Centrally Cleared Swaps:Clearinghouses currently offer clearing derivative transactions which include interest rate and credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction.

Swap agreements aremarked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received upon entering into the swap agreement compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit, and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s

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remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (referred to as the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement provided that no credit event has occurred. As the seller of protection, the Portfolio will effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may be worthless when it expires and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event involving an entity in the index, the credit event is settled based on that entity’s weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer, serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2018, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Currency Swaps: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential

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Notes to Financial Statements—December 31, 2018—(Continued)

among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust its interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include: (1) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; (2) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and (3) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels; and (4) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Asset Derivatives			Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value		Statement of Assets & Liabilities Location	Fair Value
Interest Rate	Investments at market value (a) (f)	$	10,654,570
	Unrealized appreciation on centrally cleared swap contracts (b) (c)		4,124,956	Unrealized depreciation on centrally cleared swap contracts (b) (c)	$	14,669,637
	Unrealized appreciation on futures contracts (c) (d)		31,854,256	Unrealized depreciation on futures contracts (c) (d)		14,072,804
				Written options at value (c)		298,656
Credit				OTC swap contracts at market value (e)		1,061,993
	Unrealized appreciation on centrally cleared swap contracts (b) (c)		2,773,662	Unrealized depreciation on centrally cleared swap contracts (b) (c)		956,122
Equity	Investments at market value (a) (c)		2,412,887
				Written options at value (c)		171,013
Foreign Exchange	Investments at market value (a)		1,824,485
	Unrealized appreciation on forward foreign currency exchange contracts		7,741,885	Unrealized depreciation on forward foreign currency exchange contracts		7,431,201
				Written options at value		187,393
Total		$	61,386,701		$	38,848,819

(a)	Represents purchased options which are part of investments at value as shown in the Statement of Assets and Liabilities.
(b)	Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.
(c)	Financial instrument not subject to a master netting agreement.
(d)	Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.
(e)	Excludes OTC swap interest payable of $10,760.
(f)	Includes exchange-traded purchased options with a value of $99,736 that are not subject to a master netting agreement.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

BHFTII-42

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2018.

Counterparty	Derivative Assets subject to an MNA by Counterparty		Financial Instruments available for offset			Collateral Received†				Net Amount*
Bank of America N.A.	$	10,554,834	$	—		$	(10,554,834	)		$	—
Barclays Bank plc		538,685		(538,685	)		—				—
Citibank N.A.		6,439,175		(4,239,558	)		—				2,199,617
JPMorgan Chase Bank N.A.		2,588,510		(736,097	)		(757,199	)			1,095,214
	$	20,121,204	$	(5,514,340	)	$	(11,312,033	)	��	$	3,294,831

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2018.

Counterparty	Derivative Liabilities subject to an MNA by Counterparty		Financial Instruments available for offset			Collateral Pledged†			Net Amount**
Barclays Bank plc	$	1,612,366	$	(538,685	)	$	(770,000	)	$	303,681
Citibank N.A.		4,239,558		(4,239,558	)		—			—
Deutsche Bank AG		2,092,566		—			(2,080,000	)		12,566
JPMorgan Chase Bank N.A.		736,097		(736,097	)		—			—
	$	8,680,587	$	(5,514,340	)	$	(2,850,000	)	$	316,247

*	Net amount represents the net amount receivable from the counterparty in the event of default.
**	Net amount represents the net amount payable due to the counterparty in the event of default.
†	In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Interest Rate			Credit			Equity			Foreign Exchange			Total
Purchased options	$	(5,685,960	)	$	(161,194	)	$	(9,451,369	)	$	(3,565,416	)	$	(18,863,939	)
Forward foreign currency transactions		—			—			—			(7,100,656	)		(7,100,656	)
Swap contracts		11,307,258			(2,471,338	)		—			—			8,835,920
Futures contracts		(37,355,741	)		—			—			—			(37,355,741	)
Written options		1,720,941			—			2,583,463			2,372,858			6,677,262
	$	(30,013,502	)	$	(2,632,532	)	$	(6,867,906	)	$	(8,293,214	)	$	(47,807,154	)
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Interest Rate			Credit			Equity			Foreign Exchange			Total
Purchased options	$	(3,312,605	)	$	—		$	(127,161	)	$	(273,704	)	$	(3,713,470	)
Forward foreign currency transactions		—			—			—			4,641,751			4,641,751
Futures contracts		16,462,177			—			—			—			16,462,177
Swap contracts		(14,396,006	)		2,192,189			—			—			(12,203,817	)
Written options		(228,792	)		—			187,869			548,183			507,260
	$	(1,475,226	)	$	2,192,189		$	60,708		$	4,916,230		$	5,693,901

BHFTII-43

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Purchased options	$	447,014,238
Forward foreign currency transactions		507,691,817
Futures contracts long		2,274,158,691
Futures contracts short		(1,274,395,604	)
Swap contracts		2,136,913,265
Written options		(68,492,902	)

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange-traded derivatives (e.g., futures contracts and exchange-traded options), while collateral terms are contract specific for OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Foreign Investment Risk:The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

BHFTII-44

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar rolls and TBA transactions, and excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$ 1,498,194,274	$	1,358,821,736	$	1,665,989,541	$	1,435,591,298

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2018 were as follows:

Purchases	Sales
$ 1,126,008,960	$	1,261,003,324

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$18,654,367		0.650	%	Of the first $500 million
		0.550	%	On amounts in excess of $500 million

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Western Asset Management Company (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver -Pursuant to a management fee waiver agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.055%	On the first $500 million
0.025%	On the next $500 million
0.050%	On the next $1 billion
0.075%	On amounts in excess of $2 billion

BHFTII-45

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees -The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	3,453,352,582
Gross unrealized appreciation		105,483,069
Gross unrealized depreciation		(278,450,549	)
Net unrealized appreciation (depreciation)	$	(172,967,480	)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$175,062,928	$	135,024,329	$	—	$	—	$	175,062,928	$	135,024,329

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses			Total
$149,097,462	$	—	$	(172,363,755	)	$	(140,483,589	)	$	(163,749,882	)

BHFTII-46

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

During the year ended December 31, 2018, the Portfolio had expired capital loss carryforwards of $2,454,113.

As of December 31, 2018, the Portfolio had accumulated short-term capital losses of $44,762,356 and accumulated long-term capital losses of $95,721,233.

9. Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards Update No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)—Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this standards update to the Portfolio.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU 2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-47

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Western Asset Management Strategic Bond Opportunities Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Western Asset Management Strategic Bond Opportunities Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Western Asset Management Strategic Bond Opportunities Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-48

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/ May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**

BHFTII-49

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past  5 Years(1)
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/ April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/ April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/ April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

BHFTII-50

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II(2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-51

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-52

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-53

Brighthouse Funds Trust II

Western Asset Management Strategic Bond Opportunities Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Western Asset Management Strategic Bond Opportunities Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Western Asset Management Company regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the three-year and five-year periods ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, and its blended benchmark for the three-year and five-year periods ended September 30, 2018, and underperformed its benchmark and its blended benchmark for theone-year period ended September 30, 2018.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of12b-1 fees) were below the Expense Group median, Expense Universe median, and theSub-advised Expense Universe median, and were the lowest in the Expense Group and theSub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-54

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Managed by Western Asset Management Company

Portfolio Manager Commentary*

PERFORMANCE

For the 12 months ended December 31, 2018, the Class A, B, and E shares of the Western Asset Management U.S. Government Portfolio returned 0.97%, 0.70%, and 0.80%, respectively. The Portfolio’s benchmark, the Bloomberg Barclays U.S. Intermediate Government Bond Index¹, returned 1.43%.

MARKET ENVIRONMENT / CONDITIONS

Fixed income markets, in general, posted weak results over the twelve months ended December 31, 2018. Higher U.S. growth and inflation expectations caused U.S. Treasury yields to rise for most of the year but muted inflation coupled with global slowdown and recession fears caused yields to fall in the final months of the year. Spread sectors were similarly impacted by periods of elevated volatility as they performed well early in the year with initial solid economic growth forecasts and later saw spreads widen towards year end.

After hitting a high-water mark of 4.2% in the second quarter, the U.S. economy’s annualized gross domestic product (“GDP”) growth ticked down to 3.5% in the third quarter. The deceleration in GDP growth reflected a downturn in exports and decelerations in nonresidential fixed investment and personal consumption expenditures. The manufacturing sector continued to expand throughout the year, but the pace also moderated during the fourth quarter. The U.S. labor market remained tight throughout the year; the unemployment rate reached 3.7% in October and November, which equaled the lowest unemployment rate since 1969.

In December, the Federal Reserve (the “Fed”) raised interest rates for the fourth time in 2018, as was widely expected, to a target range between 2.25% and 2.50%. This increase marked the Fed’s ninth rate hike since December 2015. In a post-meeting statement, however, the Fed surprised market participants by retaining its forward guidance for “some further gradual increases” and only lowering its prediction from three hikes to two hikes in 2019. This messaging stood in contrast to the dovish approach that had seemingly been advocated by previous remarks from Fed Chair Jerome Powell and other members. Concerns over a potential Fed policy error added to the heightened market volatility experienced towards year end.

PORTFOLIO REVIEW /PERIOD-END POSITIONING

The Western Asset Management U.S. Government Portfolio underperformed its benchmark during the period. Among the largest detractors to performance were the Portfolio’s exposures to Agency Mortgage-Backed Securities (“MBS”), Agency debt, and Emerging Markets Debt as spreads generally widened in all three sectors. During a year in which spread sectors experienced heightened levels of volatility, especially during the final months as the broader market witnessed a flight to quality, overall spread sector performance was mixed. The largest positive contributor to the Portfolio’s performance was its tactical duration positioning, which helped mute downside volatility duringrisk-off periods. The Portfolio’s yield curve positioning had a negligible impact on performance.Non-Agency MBS, Commercial Mortgage-Backed Securities, and Asset-Backed Securities exposures all provided small positive contributions to performance as fundamentals remained solid throughout the majority of the year.

The Portfolio’s exposure to Treasury Inflation-Protected Securities (“TIPS”) was a detractor to performance as break-even inflation rates (expectations of future inflation) across the curve declined on the year as energy prices fell.

At period end, the Portfolio’s exposure tonon-U.S. sovereign paper remained focused on Latin American U.S. dollar-denominated bonds issued by Colombia and Brazil, with modest additional exposure tooil-producing Asian economies. Spreads in these positions widened dramatically over the period, reducing relative returns. Additionally, we increased the Portfolio’s exposure to TIPS to a still-modest 3% in the fourth quarter as real yields rose even as nominal yields declined. While headline inflation will rise modestly as energy prices stabilize, we expect overall inflation will continue at fairly low levels through the first half of 2019. Finally, we added to Agency MBS exposure as spreads remained at multi-year wides, bringing total Agency MBS exposure to about 39%. At year end, we expected the additional yield of Agency MBS would prove more than sufficient compensation in this high quality sector as mortgage rates peaked at 4.6% in November and should stabilize nearyear-end levels.

Fredrick Marki

S. Kenneth Leech

Mark S. Lindbloom

Portfolio Managers

Western Asset Management Company

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

BHFTII-1

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG BARCLAYS U.S. INTERMEDIATE GOVERNMENT BOND INDEX

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2018)

	1 Year		5 Year		10 Year
Western Asset Management U.S. Government Portfolio
Class A		0.97		1.51		2.56
Class B		0.70		1.25		2.30
Class E		0.80		1.34		2.41
Bloomberg Barclays U.S. Intermediate Government Bond Index		1.43		1.46		1.83

¹ The Bloomberg Barclays U.S. Intermediate Government Bond Index includes most obligations of the U.S. Treasury, agencies and quasi-federal corporations having maturities between one and ten years.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2018

Top Sectors

	% of Net Assets
U.S. Treasury & Government Agencies		91.1
Corporate Bonds & Notes		8.6
Foreign Government		8.6
Mortgage-Backed Securities		2.6
Asset-Backed Securities		1.2

BHFTII-2

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service(12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

Western Asset Management U.S. Government Portfolio		Annualized Expense Ratio			Beginning Account Value July 1, 2018		Ending Account Value December 31, 2018		Expenses Paid During Period** July 1, 2018 to December 31, 2018
Class A (a)	Actual		0.49	%	$	1,000.00	$	1,016.80	$	2.49
	Hypothetical*		0.49	%	$	1,000.00	$	1,022.74	$	2.50
Class B (a)	Actual		0.74	%	$	1,000.00	$	1,016.00	$	3.76
	Hypothetical*		0.74	%	$	1,000.00	$	1,021.48	$	3.77
Class E (a)	Actual		0.64	%	$	1,000.00	$	1,016.00	$	3.25
	Hypothetical*		0.64	%	$	1,000.00	$	1,021.98	$	3.26

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect theone-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

BHFTII-3

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—91.1% of Net Assets

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—41.5%
Fannie Mae 15 Yr. Pool 2.500%, TBA (a)		3,600,000	$	3,515,875
3.000%, TBA (a)		17,100,000		17,059,657
3.500%, TBA (a)		30,000,000		30,365,924
4.500%, 03/01/20		15,065		15,336
Fannie Mae 20 Yr. Pool 3.000%, 12/01/37		1,585,297		1,569,977
4.500%, 11/01/31		607,562		635,484
4.500%, 12/01/31		848,639		887,307
Fannie Mae 30 Yr. Pool 3.000%, 09/01/42		7,734,682		7,617,191
3.000%, 11/01/46		23,210,754		22,662,634
3.000%, 01/01/48		263,317	��	257,016
3.000%, 11/01/48		4,186,681		4,087,013
3.500%, 10/01/47		18,239,773		18,250,421
3.500%, 12/01/47		1,797,372		1,801,670
3.500%, 01/01/48		345,607		345,741
3.500%, 03/01/48		14,818,859		14,826,260
3.500%, TBA (a)		93,948,000		93,961,051
4.000%, 02/01/40		595,133		611,670
4.000%, 06/01/42		5,559,530		5,744,841
4.000%, 07/01/42		2,484,018		2,555,021
4.000%, 05/01/43		13,970,895		14,411,912
4.000%, 10/01/43		7,475,680		7,711,708
4.000%, 04/01/47		7,955,366		8,141,453
4.000%, 05/01/47		3,510,787		3,588,672
4.000%, 08/01/47		38,486,838		39,256,715
4.000%, 05/01/48		13,904,028		14,250,163
4.000%, TBA (a)		350,000		356,898
4.500%, 04/01/41		7,792,459		8,166,011
4.500%, 10/01/41		4,782,312		5,003,397
4.500%, 07/01/44		205,238		215,351
4.500%, 10/01/44		1,252,095		1,313,206
4.500%, 01/01/45		116,255		122,463
4.500%, 01/01/47		782,284		811,163
4.500%, 06/01/47		255,779		265,196
4.500%, 07/01/47		1,328,163		1,386,626
4.500%, 08/01/47		1,734,709		1,811,069
5.000%, 07/01/33		189,506		201,269
5.000%, 09/01/33		232,318		246,745
5.000%, 10/01/35		654,434		695,131
5.000%, 03/01/36		1,040,552		1,105,440
5.000%, 01/01/39		8,133		8,647
5.000%, 12/01/39		15,545		16,545
5.000%, 05/01/40		49,538		52,416
5.000%, 07/01/40		32,045		34,099
5.000%, 11/01/40		778,097		827,251
5.000%, 01/01/41		60,207		63,998
5.000%, 02/01/41		46,645		48,883
5.000%, 04/01/41		82,083		86,744
5.000%, 05/01/41		1,828,603		1,945,351
5.000%, 06/01/41		167,964		178,707
5.000%, 07/01/41		1,567,792		1,659,518
5.000%, 10/01/48		1,763,253		1,848,276
5.000%, 11/01/48		4,520,938		4,749,423
5.000%, TBA (a)		500,000		523,893
Agency Sponsored Mortgage - Backed—(Continued)
Fannie Mae 30 Yr. Pool 6.000%, 04/01/33		64,465		70,309
6.000%, 02/01/34		12,552		13,690
6.000%, 11/01/35		125,821		137,255
6.000%, 08/01/37		273,503		298,391
6.500%, 03/01/26		573		615
6.500%, 04/01/29		56,523		60,664
7.000%, 11/01/28		1,677		1,737
7.000%, 02/01/29		563		563
7.000%, 01/01/30		1,980		2,005
7.000%, 10/01/37		6,671		7,215
7.000%, 11/01/37		20,097		21,770
7.000%, 12/01/37		19,961		22,864
7.000%, 02/01/38		10,303		10,966
7.000%, 11/01/38		88,624		100,643
7.000%, 02/01/39		858,724		976,427
7.500%, 04/01/32		12,369		12,512
8.000%, 05/01/28		1,459		1,588
8.000%, 07/01/32		819		870
Fannie Mae Balloon Pool 3.770%, 01/01/29		1,011,000		1,039,891
Fannie Mae Connecticut Avenue Securities (CMO) 3.186%, 1M LIBOR + 0.680%, 10/25/30 (b)		5,023,684		5,010,878
3.956%, 1M LIBOR + 1.450%, 01/25/29 (b)		166,944		167,561
Fannie Mae Interest Strip (CMO) 3.500%, 11/25/41 (c)		2,188,642		422,781
4.000%, 04/25/42 (c)		2,946,751		576,572
4.500%, 11/25/39 (c)		1,538,958		340,521
Fannie Mae Pool 3.500%, 08/01/42		9,323,910		9,381,952
3.500%, 09/01/42		637,941		641,913
3.500%, 10/01/42		4,510,231		4,538,309
3.740%, 11/01/28		1,490,000		1,506,760
4.000%, 10/01/42		2,719,047		2,789,799
4.000%, 11/01/42		1,792,935		1,839,495
4.000%, 07/01/43		57,857		59,357
4.000%, 08/01/43		1,292,965		1,326,536
6.500%, 12/01/27		3,687		3,693
6.500%, 05/01/32		13,161		14,632
Fannie Mae REMIC Trust Whole Loan (CMO) 4.497%, 01/25/43 (b)		257,577		268,276
Fannie Mae REMICS (CMO) Zero Coupon, 03/25/42 (d)		409,893		364,161
3.644%,-1x 1M LIBOR + 6.150%, 03/25/42 (b) (c)		6,667,587		802,720
3.644%,-1x 1M LIBOR + 6.150%, 12/25/42 (b) (c)		758,777		129,408
4.024%,-1x 1M LIBOR + 6.530%, 01/25/41 (b) (c)		1,063,355		154,871
4.044%,-1x 1M LIBOR + 6.550%, 10/25/41 (b) (c)		4,110,887		611,459
4.144%,-1x 1M LIBOR + 6.650%, 02/25/41 (b) (c)		512,276		56,423
4.144%,-1x 1M LIBOR + 6.650%, 03/25/42 (b) (c)		1,612,244		194,133
5.500%, 07/25/41		7,186,059		7,856,057
5.500%, 04/25/42		1,700,551		1,850,226
6.000%, 05/25/42		1,032,094		1,110,907
6.500%, 06/25/39		140,818		150,253
6.500%, 07/25/42		1,906,332		2,161,762
9.750%, 08/25/19		187		188

See accompanying notes to financial statements.

BHFTII-4

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
FannieMae-ACES (CMO) 2.037%, 09/25/26		2,331,534	$	2,262,282
Freddie Mac 15 Yr. Gold Pool 2.500%, 10/01/31		2,999,998		2,927,515
2.500%, 04/01/33		12,085,760		11,793,755
2.500%, 06/01/33		4,582,696		4,471,973
2.500%, 09/01/33		331,536		323,526
Freddie Mac 20 Yr. Gold Pool 3.000%, 02/01/38		1,890,807		1,861,049
3.000%, 04/01/38		1,611,093		1,587,024
Freddie Mac 30 Yr. Gold Pool 3.000%, 04/01/47		1,359,148		1,325,807
3.000%, TBA (a)		5,700,000		5,555,635
3.500%, 08/01/48		219,036		219,034
3.500%, 09/01/48		670,845		670,841
3.500%, 10/01/48		16,807,670		16,807,405
4.000%, 07/01/43		3,974,262		4,091,585
4.000%, 08/01/43		3,451,409		3,553,300
4.000%, 07/01/47		7,425,450		7,580,590
4.000%, 12/01/47		821,830		839,217
4.000%, 04/01/48		476,749		486,192
4.000%, 05/01/48		2,500,769		2,550,238
4.000%, 09/01/48		10,705,115		10,915,797
4.000%, TBA (a)		22,700,000		23,141,047
4.500%, 06/01/38		1,363,846		1,418,476
4.500%, 02/01/47		721,052		747,266
4.500%, 03/01/47		61,077		63,293
4.500%, 04/01/47		1,173,409		1,216,068
4.500%, 05/01/47		556,555		576,468
4.500%, 06/01/47		2,152,255		2,230,810
4.500%, 07/01/47		49,258		51,025
4.500%, 06/01/48		17,157,954		17,773,198
5.000%, 08/01/33		17,852		18,945
5.000%, 01/01/36		29,751		31,567
5.000%, 01/01/40		26,389		27,939
5.000%, 04/01/41		26,328		27,876
5.000%, 06/01/41		3,919,820		4,162,425
5.000%, 04/01/44		30,776		32,493
5.000%, 07/01/48		100,000		104,700
5.000%, 08/01/48		5,279,890		5,528,664
5.000%, 09/01/48		582,421		611,257
5.000%, 10/01/48		1,079,628		1,131,160
5.000%, 11/01/48		797,161		836,686
5.000%, TBA (a)		4,200,000		4,396,596
6.000%, 10/01/36		702,193		766,726
6.500%, 09/01/39		249,094		282,506
8.000%, 09/01/30		3,192		3,641
Freddie Mac 30 Yr.Non-Gold Pool 8.000%, 07/01/20		1		1
Freddie Mac Gold Pool 3.500%, 10/01/42		975,302		980,965
3.500%, 02/01/44		441,653		444,214
4.000%, 04/01/43		1,421,347		1,458,290
4.000%, 08/01/43		862,330		884,950
Freddie Mac Multifamily Structured Pass-Through Certificates (CMO) 3.291%, 03/25/27		4,670,000		4,698,299
Agency Sponsored Mortgage - Backed—(Continued)
Freddie Mac REMICS (CMO) 4.500%, 04/15/32		276,345		290,687
6.000%, 05/15/36		461,630		513,992
8.500%, 06/15/21		3,289		3,363
Freddie Mac Structured Agency Credit Risk Debt Notes (CMO) 3.706%, 1M LIBOR + 1.200%, 07/25/29 (b)		4,975,905		4,998,407
4.706%, 1M LIBOR + 2.200%, 09/25/24 (b)		5,444,962		5,558,935
Ginnie Mae I 30 Yr. Pool 3.500%, 06/15/48	5,926,509		5,990,737
5.500%, 06/15/36		400,223		433,277
6.000%, 03/15/33		707,262		777,572
6.500%, 06/15/31		2,739		2,949
6.500%, 08/15/34		179,377		193,846
7.500%, 09/15/29		1,526		1,664
8.500%, 06/15/25		16,496		18,137
Ginnie Mae II 30 Yr. Pool
3.000%, 09/20/47		7,809,382		7,686,868
3.000%, 11/20/47		18,908,999		18,610,530
3.000%, 12/20/47		30,262,661		29,783,474
3.500%, 06/20/44		2,483,354		2,510,662
3.500%, TBA (a)		7,200,000		7,249,102
4.000%, 09/20/45		1,262,077		1,299,741
4.000%, 11/20/45		8,603,425		8,856,162
4.500%, 01/20/40		596,894		626,338
4.500%, 05/20/40		786,570		825,378
4.500%, 09/20/40		16,502		17,315
4.500%, 01/20/41		130,124		136,550
4.500%, 07/20/41		870,774		913,539
4.500%, 06/20/48		7,824,929		8,105,170
4.500%, 09/20/48		494,847		512,495
4.500%, TBA (a)		35,300,000		36,527,548
5.000%, 07/20/40		598,426		638,166
5.000%, 08/20/48		3,264,731		3,402,389
5.000%, 11/20/48		1,657,004		1,726,603
5.000%, 01/20/49		400,000		416,859
5.000%, TBA (a)		36,000,000		37,450,855
6.000%, 11/20/34		1,303		1,414
6.000%, 06/20/35		2,057		2,233
6.000%, 07/20/36		116,199		126,179
6.000%, 09/20/36		5,694		6,174
6.000%, 07/20/38		296,857		324,513
6.000%, 09/20/38		766,948		827,777
6.000%, 06/20/39		3,796		4,081
6.000%, 05/20/40		68,631		74,463
6.000%, 06/20/40		197,004		213,548
6.000%, 08/20/40		106,671		113,680
6.000%, 09/20/40		237,568		252,946
6.000%, 10/20/40		160,205		173,895
6.000%, 11/20/40		219,377		237,922
6.000%, 01/20/41		159,099		172,447
6.000%, 03/20/41		808,440		861,134
6.000%, 07/20/41		163,318		177,215
6.000%, 12/20/41		116,615		126,227
6.500%, 10/20/37		255,871		294,341

See accompanying notes to financial statements.

BHFTII-5

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

U.S. Treasury & Government Agencies—(Continued)

Security Description	Principal Amount*		Value
Agency Sponsored Mortgage - Backed—(Continued)
Government National Mortgage Association (CMO) 0.253%, 02/16/48 (b) (c)		5,068,241	$	116,555
0.277%, 02/16/53 (b) (c)		12,867,551		254,990
0.326%, 09/16/46 (b) (c)		25,837,357		259,345
0.422%, 05/16/54 (b) (c)		16,683,992		362,388
0.436%, 03/16/49 (b) (c)		8,095,882		111,037
0.521%, 10/16/54 (b) (c)		31,563,297		884,309
0.691%, 03/16/60 (b) (c)		7,232,492		433,448
0.741%, 05/16/54 (b) (c)		16,212,081		654,328
0.768%, 12/16/59 (b) (c)		72,769,874		5,092,057
0.841%, 09/16/55 (b) (c)		18,451,328		985,157
0.954%, 12/16/56 (b) (c)		43,620,967		3,314,295
1.067%, 09/16/44 (b) (c)		14,707,650		713,481
1.160%, 02/16/46 (b) (c)		20,934,346		997,524
2.694%, 1M LIBOR + 0.380%, 12/20/60 (b)		15,477,008		15,468,807
2.714%, 1M LIBOR + 0.400%, 12/20/60 (b)		4,594,098		4,593,856
2.744%, 1M LIBOR + 0.430%, 10/20/64 (b)		6,328,177		6,334,815
2.794%, 1M LIBOR + 0.480%, 03/20/61 (b)		4,129,390		4,136,979
2.814%, 1M LIBOR + 0.500%, 12/20/60 (b)		36,684,696		36,781,716
3.250%, 12M LIBOR + 0.250%, 10/20/68 (b)		2,982,649		2,998,055
3.645%,-1x 1M LIBOR + 6.100%, 08/16/42 (b) (c)		970,525		152,118
4.030%,-1x 1M LIBOR + 6.500%, 03/20/39 (b) (c)		147,769		4,469
4.180%,-1x 1M LIBOR + 6.650%, 01/20/40 (b) (c)		603,921		52,215
				823,227,765
Federal Agencies—36.7%
Federal Agricultural Mortgage Corp. 2.600%, 03/29/21		20,000,000		20,021,620
Federal Farm Credit Bank 1.250%, 01/17/19		25,000,000		24,987,900
1.750%, 10/26/20		15,000,000		14,773,950
1.900%, 11/27/20		20,000,000		19,740,920
1.950%, 01/10/20		10,000,000		9,942,300
2.240%, 01/06/25		12,305,000		11,686,858
2.240%, 07/06/27		10,000,000		9,346,190
2.300%, 06/11/19		10,000,000		9,987,040
2.550%, 06/11/20		10,000,000		9,999,540
2.750%, 04/25/22		20,000,000		20,081,520
Federal Home Loan Bank 1.375%, 09/28/20		10,000,000		9,795,980
1.875%, 11/29/21		49,000,000		48,113,100
2.125%, 06/09/23		17,700,000		17,305,715
2.375%, 12/13/19 (e)		20,000,000		19,943,800
2.375%, 03/30/20		8,000,000		7,981,512
2.625%, 05/28/20		20,000,000		20,025,860
3.250%, 11/16/28		20,000,000		20,327,080
5.250%, 12/11/20		12,000,000		12,600,000
Federal Home Loan Mortgage Corp. Zero Coupon, 11/29/19		10,200,000		9,935,604
1.125%, 04/15/19		30,000,000		29,882,520
1.500%, 01/17/20		10,000,000		9,886,720
2.750%, 06/19/23		20,000,000		20,124,940
Federal National Mortgage Association Zero Coupon, 10/09/19		50,000,000		48,927,040
2.125%, 04/24/26		10,000,000		9,530,020
2.625%, 09/06/24		22,000,000		21,921,658
Federal Agencies—(Continued)
Financing Corp. Fico Zero Coupon, 04/05/19		1,245,000		1,236,172
Zero Coupon, 06/06/19		26,414,000		26,103,011
Zero Coupon, 09/26/19		14,535,000		14,239,160
National Archives Facility Trust 8.500%, 09/01/19		878,880		899,179
New Valley Generation II 5.572%, 05/01/20		3,097,560		3,163,383
Overseas Private Investment Corp. Zero Coupon, 11/13/19		3,306,787		3,607,193
Zero Coupon, 07/01/21		6,750,000		6,809,420
Zero Coupon, 07/17/21		7,763,000		7,837,640
2.310%, 11/15/30		7,511,618		7,165,435
3.330%, 05/15/33		6,512,177		6,523,415
3.490%, 12/20/29		10,705,157		10,970,863
3.540%, 06/15/30		13,529,556		13,900,253
Residual Funding Corp. Principal Strip Zero Coupon, 10/15/19		10,642,000		10,414,877
Zero Coupon, 07/15/20		14,864,000		14,274,701
Zero Coupon, 10/15/20		38,159,000		36,408,310
Zero Coupon, 01/15/21		20,000,000		18,955,656
Zero Coupon, 01/15/30		25,000,000		17,641,040
Zero Coupon, 04/15/30		20,000,000		13,991,155
Tennessee Valley Authority 2.250%, 03/15/20		20,000,000		19,929,500
3.875%, 02/15/21		35,000,000		35,919,135
				726,858,885
U.S. Treasury—12.9%
U.S. Treasury Bond 3.750%, 11/15/43		8,000,000		9,050,843
U.S. Treasury Inflation Indexed Bonds
0.625%, 02/15/43 (f)		3,739,524		3,277,953
1.375%, 02/15/44 (f)		27,016,749		27,897,963
U.S. Treasury Inflation Indexed Notes 0.625%, 04/15/23 (f)		22,478,102		22,105,821
U.S. Treasury Notes
1.375%, 05/31/21		28,600,000		27,860,371
1.875%, 01/31/22		54,000,000		53,036,421
2.000%, 06/30/24		20,000,000		19,448,639
2.000%, 02/15/25		96,000,000		92,875,509
				255,553,520
Total U.S. Treasury & Government Agencies (Cost $1,810,690,218)				1,805,640,170
Corporate Bonds & Notes—8.6%
Chemicals—0.1%
Equate Petrochemical B.V. 4.250%, 11/03/26 (144A)		1,540,000		1,489,319
Diversified Financial Services—3.4%
COP I LLC 3.650%, 12/05/21		4,232,556		4,287,611

See accompanying notes to financial statements.

BHFTII-6

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

Corporate Bonds & Notes—(Continued)

Security Description	Principal Amount*		Value
Diversified Financial Services—(Continued)
Postal Square L.P. 6.500%, 06/15/22		4,380,480	$	4,574,718
Private Export Funding Corp.
2.250%, 03/15/20		11,950,000		11,890,752
2.300%, 09/15/20		28,000,000		27,782,748
2.650%, 02/16/21 (144A)		20,000,000		20,015,280
				68,551,109
Electric—0.4%
Enel Chile S.A. 4.875%, 06/12/28		4,000,000		3,990,000
Perusahaan Listrik Negara PT 5.450%, 05/21/28 (144A)		4,000,000		4,046,076
				8,036,076
Iron/Steel—1.0%
Vale Overseas, Ltd. 6.250%, 08/10/26		17,875,000		19,305,000
Oil & Gas—0.4%
Ecopetrol S.A. 5.375%, 06/26/26		4,260,000		4,286,625
Petroleos Mexicanos 6.375%, 01/23/45		3,610,000		2,906,050
				7,192,675
Sovereign—3.3%
National Credit Union Administration Guaranteed Notes Trust
3.000%, 06/12/19		19,650,000		19,675,742
3.450%, 06/12/21		45,000,000		45,828,900
				65,504,642
Total Corporate Bonds & Notes (Cost $173,895,821)				170,078,821
Foreign Government—8.6%
Sovereign—8.6%
Colombia Government International Bonds
5.000%, 06/15/45 (e)		37,000,000		35,224,000
5.625%, 02/26/44		4,840,000		4,990,040
Indonesia Government International Bonds
3.750%, 04/25/22 (144A)		410,000		405,870
3.750%, 04/25/22		1,900,000		1,880,861
4.875%, 05/05/21		2,957,000		3,020,534
5.875%, 03/13/20		310,000		318,675
5.875%, 01/15/24 (144A) (e)		1,060,000		1,130,068
Israel Government AID Bonds
5.500%, 12/04/23		24,290,000		27,324,423
5.500%, 04/26/24		20,950,000		23,818,702
Panama Government International Bond 4.500%, 05/15/47		3,200,000		3,108,000
Peruvian Government International Bonds
5.625%, 11/18/50		350,000		410,900
6.550%, 03/14/37		4,210,000		5,315,125
Sovereign—(Continued)
Poland Government International Bond 4.000%, 01/22/24		7,870,000		8,051,041
Qatar Government International Bond 5.103%, 04/23/48 (144A)		7,300,000		7,666,825
Ukraine Government AID Bonds
1.471%, 09/29/21		20,000,000		19,331,420
1.844%, 05/16/19		25,000,000		24,932,350
Uruguay Government International Bond 5.100%, 06/18/50		3,200,000		3,140,800
Total Foreign Government (Cost $174,338,892)				170,069,634
Mortgage-Backed Securities—2.6%
Collateralized Mortgage Obligations—2.6%
Banc of America Funding Corp. 2.465%, 1M LIBOR + 0.150%, 02/27/37 (144A) (b)		6,857,858		6,603,723
Banc of America Funding Trust 2.509%, COFI + 1.430%, 06/20/35 (b)		194,642		138,945
Banc of America Mortgage Trust 4.239%, 07/25/35 (b)		42,108		38,910
BCAP LLC Trust 3.534%, 1M LIBOR + 0.150%, 11/27/36 (144A) (b)		10,602,289		9,993,223
Citigroup Mortgage Loan Trust 4.820%, 1Y H15 + 2.400%, 10/25/35 (b)		81,643		82,456
Countrywide Alternative Loan Trust
2.670%, 1M LIBOR + 0.200%, 07/20/46 (b)		1,892,795		1,430,617
3.086%, 1M LIBOR + 0.580%, 05/25/34 (b)		697,577		692,247
Countrywide Home Loan Reperforming Loan REMIC Trust 2.926%, 1M LIBOR + 0.420%, 07/25/36 (144A) (b)		473,025		452,874
GMAC Mortgage Corp. Loan Trust 4.638%, 11/19/35 (b)		234,857		226,463
GS Mortgage-Backed Securities Trust 3.750%, 10/25/57 (144A)		4,950,052		4,966,852
JPMorgan Mortgage Trust
3.500%, 10/25/48 (144A) (b)		3,982,618		3,904,212
4.145%, 06/25/34 (b)		109,431		109,587
MASTR Adjustable Rate Mortgages Trust
2.706%, 1M LIBOR + 0.200%, 05/25/47 (b)		4,136,277		3,430,872
3.465%, 02/25/34 (b)		145,093		137,429
MASTR Reperforming Loan Trust
2.856%, 1M LIBOR + 0.350%, 05/25/35 (144A) (b)		249,240		196,913
4.026%, 05/25/35 (144A) (b)		3,257,733		2,508,650
7.000%, 08/25/34 (144A)		310,394		309,410
Morgan Stanley Mortgage Loan Trust
2.646%, 1M LIBOR + 0.140%, 06/25/36 (b)		545,060		205,930
3.683%, 07/25/35 (b)		146,277		127,722
New Residential Mortgage Loan Trust
3.250%, 09/25/56 (144A) (b)		3,390,547		3,343,017
4.000%, 02/25/57 (144A) (b)		2,883,329		2,900,207
4.000%, 05/25/57 (144A) (b)		5,085,059		5,128,320
NovaStar Mortgage Funding Trust 2.696%, 1M LIBOR + 0.190%, 09/25/46 (b)		1,421,962		1,292,821
Provident Funding Mortgage Loan Trust
3.694%, 05/25/35 (b)		173,335		173,253
4.214%, 10/25/35 (b)		40,885		40,311

See accompanying notes to financial statements.

BHFTII-7

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

Mortgage-Backed Securities—(Continued)

Security Description	Principal Amount*		Value
Collateralized Mortgage Obligations—(Continued)
SACO I Trust 9.030%, 06/25/21 (144A) (b)		444,882	$	433,716
Structured Asset Mortgage Investments II Trust 2.686%, 1M LIBOR + 0.180%, 07/25/46 (b)		168,807		155,037
Structured Asset Securities Corp.
2.856%, 1M LIBOR + 0.350%, 04/25/35 (144A) (b)		2,024,093		1,891,482
4.113%, 06/25/35 (144A) (b)		112,858		104,399
Total Mortgage-Backed Securities (Cost $51,818,908)				51,019,598
Asset-Backed Securities—1.2%
Asset-Backed - Automobile—0.2%
Hertz Vehicle Financing II LP 3.290%, 02/25/24 (144A)		4,880,000		4,837,267
Asset-Backed - Home Equity—0.1%
EMC Mortgage Loan Trust 2.956%, 1M LIBOR + 0.450%, 12/25/42 (144A) (b)		2,635		2,628
Home Equity Mortgage Loan Asset-Backed Trust 2.766%, 1M LIBOR + 0.260%, 06/25/36 (b)		3,726,904		471,716
Morgan Stanley Mortgage Loan Trust
2.596%, 1M LIBOR + 0.090%, 12/25/36 (b)		195,081		117,304
2.806%, 1M LIBOR + 0.300%, 03/25/36 (b)		407,581		407,139
Structured Asset Securities Corp. Mortgage Loan Trust 2.726%, 1M LIBOR + 0.220%, 02/25/36 (144A) (b)		4,667,037		230,326
				1,229,113
Asset-Backed - Other—0.5%
Countrywide Revolving Home Equity Loan Trust 2.595%, 1M LIBOR + 0.140%, 07/15/36 (b)		507,659		479,898
Towd Point Mortgage Trust
2.250%, 04/25/56 (144A) (b)		6,131,684		5,990,757
2.750%, 06/25/57 (144A) (b)		4,198,880		4,084,341
				10,554,996
Asset-Backed - Student Loan—0.4%
National Credit Union Administration Guaranteed Notes Trust 2.737%, 1M LIBOR + 0.350%, 12/07/20 (b)		3,161,941		3,164,226
Nelnet Student Loan Trust 4.327%, 3M LIBOR + 1.650%, 11/25/24 (b)		4,045,179		4,073,530
SLM Student Loan Trust 2.530%, 3M LIBOR + 0.040%, 01/25/19 (b)		922,265		921,998
				8,159,754
Total Asset-Backed Securities (Cost $33,626,029)				24,781,130
Short-Term Investments—0.6%
Security Description	Principal Amount*		Value
Repurchase Agreements—0.6%
Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/18 at 1.200%, due on 01/02/19 with a maturity value of $1,284,717; collateralized by U.S. Treasury Note at 2.875%, maturing 10/31/23, with a market value of $1,314,131.		1,284,632		1,284,632
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 1/02/19 with a maturity value of $11,401,868; collateralized by U.S. Treasury Note at 2.625%, maturing 12/31/23, with a market value of $11,652,866.		11,400,000		11,400,000
Total Short-Term Investments (Cost $12,684,632)				12,684,632
Securities Lending Reinvestments (g)—0.8%
Repurchase Agreements—0.8%
Citigroup Global Markets, Ltd.
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $400,055; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 1.875%, maturity dates ranging from 12/15/20 - 01/15/27, and an aggregate market value of $408,000.		400,000		400,000
Repurchase Agreement dated 12/31/18 at 2.490%, due on 01/02/19 with a maturity value of $1,500,208; collateralized by U.S. Treasury Obligations with rates ranging from 1.625% - 2.875%, maturity dates ranging from 06/30/20 - 11/15/46, and an aggregate market value of $1,530,000.		1,500,000		1,500,000
Deutsche Bank AG, London Repurchase Agreement dated 12/31/18 at 2.750%, due on 01/02/19 with a maturity value of $300,046; collateralized by U.S. Treasury and Foreign Obligations with rates ranging from 1.000% - 2.590%, maturity dates ranging from 03/31/19 - 12/29/26, and an aggregate market value of $306,000.		300,000		300,000
Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/18 at 3.200%, due on 01/02/19 with a maturity value of $3,299,769; collateralized by U.S. Treasury Obligations at 0.000%, maturity dates ranging from 08/15/30 - 08/15/39, and an aggregate market value of $3,365,166.		3,299,183		3,299,183
NBC Global Finance, Ltd.
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,000,142; collateralized by various Common Stock with an aggregate market value of $1,113,212.		1,000,000		1,000,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,100,156; collateralized by various Common Stock with an aggregate market value of $1,224,533.		1,100,000		1,100,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/02/19 with a maturity value of $1,100,156; collateralized by various Common Stock with an aggregate market value of $1,224,533.		1,100,000		1,100,000

See accompanying notes to financial statements.

BHFTII-8

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

Securities Lending Reinvestments (g)—(Continued)

Security Description	Principal Amount*		Value
Repurchase Agreements—(Continued)
Nomura Securities International, Inc. Repurchase Agreement dated 12/31/18 at 2.950%, due on 01/02/19 with a maturity value of $3,000,492; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 6.500%, maturity dates ranging from 02/15/19 - 08/15/48, and an aggregate market value of $3,060,000.		3,000,000	$	3,000,000
Societe Generale
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $700,098; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $766,833.		700,000		700,000
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $1,242,277; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,360,693.		1,242,102		1,242,102
Repurchase Agreement dated 12/31/18 at 2.530%, due on 01/02/19 with a maturity value of $1,300,183; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $1,424,119.		1,300,000		1,300,000
Repurchase Agreement dated 12/31/18 at 2.560%, due on 01/07/19 with a maturity value of $55,027; collateralized by U.S. Treasury Obligations with rates ranging from 0.750% - 8.000%, maturity dates ranging from 09/30/19 - 08/15/46, and various Common Stock with an aggregate market value of $60,251.		55,000		55,000
				14,996,285
Total Securities Lending Reinvestments (Cost $14,996,285)				14,996,285
Total Investments—113.5% (Cost $2,272,050,785)				2,249,270,270
Other assets and liabilities (net)—(13.5)%				(268,396,960	)
Net Assets—100.0%			$	1,980,873,310

*	Principal amount stated in U.S. dollars unless otherwise noted.
(a)	TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(b)	Variable or floating rate security. The stated rate represents the rate at December 31, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.
(c)	Interest only security.
(d)	Principal only security.
(e)	All or a portion of the security was held on loan. As of December 31, 2018, the market value of securities loaned was $14,638,907 and the collateral received consisted of cash in the amount of $14,996,285. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.
(f)	Principal amount of security is adjusted for inflation.
(g)	Represents investment of cash collateral received from securities on loan as of December 31, 2018.
(144A)—	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2018, the market value of 144A securities was $92,635,755, which is 4.7% of net assets.

Futures Contracts     

Futures Contracts—Short	Expiration Date		Number of Contracts			Notional Value				Value/ Unrealized Depreciation
U.S. Treasury Long Bond Futures		03/20/19		(538	)		USD	(78,548,000	)	$	(3,544,998	)
U.S. Treasury Note 10 Year Futures		03/20/19		(26	)		USD	(3,172,406	)		(68,983	)
Net Unrealized Depreciation										$	(3,613,981	)

See accompanying notes to financial statements.

BHFTII-9

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Schedule of Investments as of December 31, 2018

Glossary of Abbreviations    

Currencies

(USD)— United States Dollar

Index Abbreviations

(H15)—	U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index
(COFI)—	11th District Cost of Funds Index
(LIBOR)—	London Interbank Offered Rate

Other Abbreviations

(ACES)—	Alternative Credit Enhancement Securities
(CMO)—	Collateralized Mortgage Obligation
(REMIC)—	Real Estate Mortgage Investment Conduit

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2018:

Description	Level 1			Level 2			Level 3		Total
Total U.S. Treasury & Government Agencies*	$	—		$	1,805,640,170		$	—	$	1,805,640,170
Total Corporate Bonds & Notes*		—			170,078,821			—		170,078,821
Total Foreign Government*		—			170,069,634			—		170,069,634
Total Mortgage-Backed Securities*		—			51,019,598			—		51,019,598
Total Asset-Backed Securities*		—			24,781,130			—		24,781,130
Total Short-Term Investments*		—			12,684,632			—		12,684,632
Total Securities Lending Reinvestments*		—			14,996,285			—		14,996,285
Total Investments	$	—		$	2,249,270,270		$	—	$	2,249,270,270
Collateral for Securities Loaned (Liability)	$	—		$	(14,996,285	)	$	—	$	(14,996,285	)
Futures Contracts
Futures Contracts (Unrealized Depreciation)	$	(3,613,981	)	$	—		$	—	$	(3,613,981	)

* See Schedule of Investments for additional detailed categorizations.

See accompanying notes to financial statements.

BHFTII-10

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Statement of Assets and Liabilities

December 31, 2018

Assets
Investments at value (a) (b)	$	2,249,270,270
Cash		24
Cash collateral for futures contracts		1,404,130
Receivable for:
TBA securities sold		20,895,758
Fund shares sold		25,249
Principal paydowns		52,660
Interest		7,783,099
Prepaid expenses		5,596
Other assets		6,325
Total Assets		2,279,443,111
Liabilities
Collateral for securities loaned		14,996,285
Payables for:
Investments purchased		1,429,745
TBA securities purchased		278,432,858
Fund shares redeemed		2,225,803
Variation margin on futures contracts		262,362
Accrued Expenses:
Management fees		781,629
Distribution and service fees		83,068
Deferred trustees’ fees		111,793
Other expenses		246,258
Total Liabilities		298,569,801
Net Assets	$	1,980,873,310
Net Assets Consist of:
Paid in surplus	$	2,084,089,314
Distributable earnings (Accumulated losses)		(103,216,004	)
Net Assets	$	1,980,873,310
Net Assets
Class A	$	1,581,889,947
Class B		378,103,077
Class E		20,880,286
Capital Shares Outstanding*
Class A		137,706,897
Class B		33,082,780
Class E		1,823,943
Net Asset Value, Offering Price and Redemption Price Per Share
Class A	$	11.49
Class B		11.43
Class E		11.45

*	The Portfolio is authorized to issue an unlimited number of shares.
(a)	Identified cost of investments was $2,272,050,785.
(b)	Includes securities loaned at value of $14,638,907.

Statement of Operations

Year Ended December 31, 2018

Investment Income
Interest	$	56,195,621
Securities lending income		13,115
Total investment income		56,208,736
Expenses
Management fees		9,949,483
Administration fees		76,507
Custodian and accounting fees		153,976
Distribution and service fees—Class B		991,724
Distribution and service fees—Class E		33,179
Audit and tax services		71,838
Legal		45,317
Trustees’ fees and expenses		33,734
Shareholder reporting		106,275
Insurance		13,765
Miscellaneous		23,706
Total expenses		11,499,504
Less management fee waiver		(270,070	)
Net expenses		11,229,434
Net Investment Income		44,979,302
Net Realized and Unrealized Loss
Net realized gain (loss) on:
Investments		(17,568,654	)
Futures contracts		7,732,383
Net realized loss		(9,836,271	)
Net change in unrealized depreciation on:
Investments		(15,111,530	)
Futures contracts		(3,737,685	)
Net change in unrealized depreciation		(18,849,215	)
Net realized and unrealized loss		(28,685,486	)
Net Increase in Net Assets From Operations	$	16,293,816

See accompanying notes to financial statements.

BHFTII-11

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Statements of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets:
From Operations
Net investment income	$	44,979,302		$	36,619,286
Net realized loss		(9,836,271	)		(1,320,608	)
Net change in unrealized appreciation (depreciation)		(18,849,215	)		4,773,349
Increase in net assets from operations		16,293,816			40,072,027
From Distributions to Shareholders (a)
Class A		(39,246,145	)		(46,214,806	)
Class B		(8,163,581	)		(10,310,280	)
Class E		(475,567	)		(608,683	)
Total distributions		(47,885,293	)		(57,133,769	)
Increase (decrease) in net assets from capital share transactions		(170,359,733	)		7,266,461
Total decrease in net assets		(201,951,210	)		(9,795,281	)
Net Assets
Beginning of period		2,182,824,520			2,192,619,801
End of period	$	1,980,873,310		$	2,182,824,520	(b)

Other Information:

Capital Shares

Transactions in capital shares were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Value			Shares			Value
Class A
Sales		3,985,785		$	45,776,677			4,720,322		$	55,294,938
Reinvestments		3,491,650			39,246,145			3,980,604			46,214,806
Redemptions		(19,382,485	)		(220,545,585	)		(6,859,130	)		(80,502,507	)
Net increase (decrease)		(11,905,050	)	$	(135,522,763	)		1,841,796		$	21,007,237
Class B
Sales		3,078,724		$	34,969,508			2,724,063		$	31,769,477
Reinvestments		728,891			8,163,581			891,893			10,310,280
Redemptions		(6,716,432	)		(76,232,741	)		(4,609,499	)		(53,754,525	)
Net decrease		(2,908,817	)	$	(33,099,652	)		(993,543	)	$	(11,674,768	)
Class E
Sales		208,146		$	2,379,679			108,846		$	1,270,561
Reinvestments		42,423			475,567			52,609			608,683
Redemptions		(403,406	)		(4,592,564	)		(337,676	)		(3,945,252	)
Net decrease		(152,837	)	$	(1,737,318	)		(176,221	)	$	(2,066,008	)
Increase (decrease) derived from capital shares transactions				$	(170,359,733	)				$	7,266,461

(a)	Distributions from net investment income and realized gains are no longer required to be separately disclosed. The presentation for the year ended December 31, 2018 has been adjusted for this change (See Note 9). At December 31, 2017 the distributions were from net investment income.
(b)	As part of the update in (a), it is also no longer required to disclose the Undistributed net investment income (Accumulated losses) which was $47,552,814 as of December 31, 2017.

See accompanying notes to financial statements.

BHFTII-12

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Financial Highlights

Selected per share data
	Class A
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	11.65		$	11.74		$	11.90		$	12.11		$	12.01
Income (Loss) from Investment Operations
Net investment income (a)		0.25			0.20			0.21			0.17			0.16
Net realized and unrealized gain (loss)		(0.14	)		0.03			(0.05	)		(0.10	)		0.17
Total income (loss) from investment operations		0.11			0.23			0.16			0.07			0.33
Less Distributions
Distributions from net investment income		(0.27	)		(0.32	)		(0.32	)		(0.28	)		(0.23	)
Total distributions		(0.27	)		(0.32	)		(0.32	)		(0.28	)		(0.23	)
Net Asset Value, End of Period	$	11.49		$	11.65		$	11.74		$	11.90		$	12.11
Total Return (%) (b)		0.97			1.93			1.28			0.57			2.81
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.50			0.50			0.50			0.49			0.49
Net ratio of expenses to average net assets (%) (c)		0.49			0.48			0.48			0.48			0.48
Ratio of net investment income to average net assets (%)		2.19			1.72			1.77			1.44			1.35
Portfolio turnover rate (%)		255	(d)		208	(d)		199	(d)		215	(d)		194	(d)
Net assets, end of period (in millions)	$	1,581.9		$	1,742.8		$	1,735.3		$	1,830.7		$	2,263.8
	Class B
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	11.59		$	11.68		$	11.84		$	12.04		$	11.95
Income (Loss) from Investment Operations
Net investment income (a)		0.22			0.17			0.18			0.14			0.13
Net realized and unrealized gain (loss)		(0.14	)		0.03			(0.05	)		(0.09	)		0.16
Total income (loss) from investment operations		0.08			0.20			0.13			0.05			0.29
Less Distributions
Distributions from net investment income		(0.24	)		(0.29	)		(0.29	)		(0.25	)		(0.20	)
Total distributions		(0.24	)		(0.29	)		(0.29	)		(0.25	)		(0.20	)
Net Asset Value, End of Period	$	11.43		$	11.59		$	11.68		$	11.84		$	12.04
Total Return (%) (b)		0.70			1.68			1.02			0.31			2.55
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.75			0.75			0.75			0.74			0.74
Net ratio of expenses to average net assets (%) (c)		0.74			0.73			0.73			0.73			0.73
Ratio of net investment income to average net assets (%)		1.94			1.47			1.52			1.20			1.10
Portfolio turnover rate (%)		255	(d)		208	(d)		199	(d)		215	(d)		194	(d)
Net assets, end of period (in millions)	$	378.1		$	417.1		$	432.1		$	463.5		$	493.2

Please see following page for Financial Highlights footnote legend.

See accompanying notes to financial statements.

BHFTII-13

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Financial Highlights

	Class E
	Year Ended December 31,
	2018			2017			2016			2015			2014
Net Asset Value, Beginning of Period	$	11.61		$	11.70		$	11.85		$	12.06		$	11.97
Income (Loss) from Investment Operations
Net investment income (a)		0.23			0.18			0.19			0.16			0.14
Net realized and unrealized gain (loss)		(0.14	)		0.03			(0.04	)		(0.11	)		0.16
Total income (loss) from investment operations		0.09			0.21			0.15			0.05			0.30
Less Distributions
Distributions from net investment income		(0.25	)		(0.30	)		(0.30	)		(0.26	)		(0.21	)
Total distributions		(0.25	)		(0.30	)		(0.30	)		(0.26	)		(0.21	)
Net Asset Value, End of Period	$	11.45		$	11.61		$	11.70		$	11.85		$	12.06
Total Return (%) (b)		0.80			1.77			1.20			0.40			2.56
Ratios/Supplemental Data
Gross ratio of expenses to average net assets (%)		0.65			0.65			0.65			0.64			0.64
Net ratio of expenses to average net assets (%) (c)		0.64			0.63			0.63			0.63			0.63
Ratio of net investment income to average net assets (%)		2.04			1.57			1.62			1.30			1.20
Portfolio turnover rate (%)		255	(d)		208	(d)		199	(d)		215	(d)		194	(d)
Net assets, end of period (in millions)	$	20.9		$	22.9		$	25.2		$	28.1		$	33.0

(a)	Per share amounts based on average shares outstanding during the period.
(b)	Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c)	Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d)	Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 79%, 57%, 86%, 87% and 68% for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively.

See accompanying notes to financial statements.

BHFTII-14

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018

1. Organization

Brighthouse Funds Trust II (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC (“Brighthouse Investment Advisers” or the “Adviser”), currently offers twenty-nine series, each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Western Asset Management U.S. Government Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by life insurance companies affiliated with the Adviser and Metropolitan Life Insurance Company (the “Insurance Companies”).

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2018 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - The Portfolio values its portfolio investments for purposes of calculating its net asset value (“NAV”) using procedures approved by the Board of Trustees of the Trust (the “Board” or “Trustees”). Those procedures allow for a variety of methodologies to be used to value the Portfolio’s investments. The specific methodologies used for a particular investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process. The Portfolio follows the accounting and reporting guidance of FASB Accounting Standards Codification Topic820- Fair Value Measurement.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; andnon-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser (each a “pricing service”), pursuant to authorization of and subject to general oversight by the Board. Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued on the basis of an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued on the basis of evaluated or composite bid quotations obtained from pricing services selected by the Adviser pursuant to the authorization of and subject to general oversight by the Board. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities tradedover-the-counter (“OTC”) are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or

BHFTII-15

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets in order to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registeredopen-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Futures contracts that are traded on commodity exchanges are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by, and under the general supervision of, the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of Brighthouse Investment Advisers. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to the valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“Custodian”), the responsibility for calculating the NAVs of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing services, including the pricing services providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on theex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Foreign Currency Translation- The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Dividends and Distributions to Shareholders- The Portfolio records dividends and distributions on theex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) andpaid-in surplus. These adjustments have no impact on net assets or the results of operations.

BHFTII-16

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Income Taxes- It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2018, the Portfolio had no uncertain tax positions that would require financial statement recognition, or derecognition or disclosure.

Mortgage Dollar Rolls- The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sellsto-be-announced (“TBA”) mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

Mortgage-Related and Other Asset-Backed Securities - The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities (“SMBS”), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

TBA Purchase and Forward Sale Commitments- The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

When-Issued and Delayed-Delivery Securities- The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s Custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

Repurchase Agreements- The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under atri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a

BHFTII-17

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

repurchase agreement ofone-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA gives thenon-defaulting party the right toset-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2018, the Portfolio had direct investments in repurchase agreements with a gross value of $12,684,632. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $14,996,285. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2018.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into aNon-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the “Lending Agent”). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or U.S. government securities as collateral against the loaned securities. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2018 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2018 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2018.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of theNon-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

	Remaining Contractual Maturity of the Agreements As of December 31, 2018
	Overnight and Continuous			Up to 30 Days		31 - 90 Days		Greater than 90 days		Total
Securities Lending Transactions
Foreign Government	$	(9,377,810	)	$	—	$	—	$	—	$	(9,377,810	)
U.S. Treasury & Government Agencies		(5,618,475	)		—		—		—		(5,618,475	)
Total	$	(14,996,285	)	$	—	$	—	$	—	$	(14,996,285	)
Total Borrowings	$	(14,996,285	)	$	—	$	—	$	—	$	(14,996,285	)
Gross amount of recognized liabilities for securities lending transactions										$	(14,996,285	)

BHFTII-18

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

3. Investments in Derivative Instruments

Futures Contracts -The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts areexchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2018 by category of risk exposure:

	Liability Derivatives
Risk Exposure	Statement of Assets & Liabilities Location	Fair Value
Interest Rate	Unrealized depreciation on futures contracts (a)	$	3,613,981

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2018:

Statement of Operations Location—Net Realized Gain (Loss)	Interest Rate
Futures contracts	$	7,732,383
Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)	Interest Rate
Futures contracts	$	(3,737,685	)

For the year ended December 31, 2018, the average notional par or face amount outstanding for each derivative type was as follows:

Derivative Description	Average Notional Par or Face Amount‡
Futures contracts long	$	336,500,000
Futures contracts short		(259,675,000	)

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

4. Certain Risks

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

Market Risk:The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate, and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements

BHFTII-19

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards fornon-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements atpre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), which provide the rights toset-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2018 were as follows:

Purchases			Sales
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$5,794,315,095	$	171,982,601	$	5,926,092,374	$	203,593,167

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2018 were as follows:

Purchases	Sales
$4,345,922,659	$	4,354,802,282

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement -Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

Management Fees earned by Brighthouse Investment Advisers for the year ended December 31, 2018	% per annum			Average Daily Net Assets
$9,949,483		0.550	%	Of the first $500 million
		0.450	%	On amounts in excess of $500 million

BHFTII-20

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Western Asset Management Company (the “Subadviser”) is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, Brighthouse Investment Advisers has agreed, for the period April 30, 2018 to April 30, 2019, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

% per annum	Average Daily Net Assets
0.050%	On amounts over $200 million and under $500 million
0.010%	On amounts over $1 billion and under $2 billion
0.020%	On amounts in excess of $2 billion

An identical agreement was in place for the period May 1, 2017 to April 30, 2018. Amounts waived for the year ended December 31, 2018 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement -Brighthouse Financial, Inc. serves as the transfer agent for the Trust. Brighthouse Financial, Inc. receives no fees for its services to the Trust.

Distribution and Service Fees - The Trust has a distribution agreement with Brighthouse Securities, LLC (the “Distributor”) pursuant to which the Distributor serves as the general distributor of shares of each class (each a “Class”) of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the “Plan”) relating to Class B and Class E shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the “Service Fee”) at an annual rate not to exceed 0.25% of each such Portfolio’s average daily net assets attributable to the Class B and Class E shares of the Trust. Each Portfolio may not offer shares of each Class. The Plan also authorizes the Trust, on behalf of each of its Portfolios, may pay the Distributor a distribution Fee (the “Distribution Fee” and together with the Service Fee, the “Fees”) at an annual rate of up to 0.25% of each Portfolio’s average daily net assets attributable to the Class B and Class E shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares and 0.15% of average daily net assets in the case of Class E shares. The Plan is known as a “compensation plan” because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2018 are shown as Distribution and service fees in the Statement of Operations.

Deferred Trustee Compensation -Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The cost basis of investments for federal income tax purposes at December 31, 2018 was as follows:

Cost basis of investments	$	2,280,238,474
Gross unrealized appreciation		11,844,830
Gross unrealized depreciation		(42,806,710	)
Net unrealized appreciation (depreciation)	$	(30,961,880	)

BHFTII-21

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Notes to Financial Statements—December 31, 2018—(Continued)

The tax character of distributions paid for the years ended December 31, 2018 and 2017 were as follows:

Ordinary Income			Long-Term Capital Gain				Total
2018	2017		2018		2017		2018		2017
$47,885,293	$	57,133,769	$	—	$	—	$	47,885,293	$	57,133,769

As of December 31, 2018, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

Undistributed Ordinary Income	Undistributed Long-Term Capital Gain		Net Unrealized Depreciation			Accumulated Capital Losses			Total
$52,510,375	$	—	$	(30,961,880	)	$	(124,652,705	)	$	(103,104,210	)

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 22, 2010 may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2018, the Portfolio had short-term accumulated capital losses in the amount of $14,124,177 and long-term accumulated capital losses in the amount of $110,528,528.

9. Recent Accounting Pronouncements and SEC Update

In March 2017, FASB issued Accounting Standards UpdateNo. 2017-08 “Premium Amortization of Purchased Callable Debt Securities”, which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently assessing the impact of ASU 2017-08, but does not believe the adoption will have a material impact on the Portfolios’ financial statements.

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted and, as such, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the Portfolio’s adoption was limited to changes in the Portfolio’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosures requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Portfolio adopted the Final Rule with the most notable impacts being that the Portfolio is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amounts of undistributed net investment income on the Statements of Changes in Net Assets.

BHFTII-22

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Report of Independent Registered Public Accounting Firm

To the Shareholders of Western Asset Management U.S. Government Portfolio and the Board of Trustees of Brighthouse Funds Trust II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Western Asset Management U.S. Government Portfolio (the “Portfolio”), one of the portfolios constituting the Brighthouse Funds Trust II, as of December 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Western Asset Management U.S. Government Portfolio of the Brighthouse Funds Trust II as of December 31, 2018, the results of its operations the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2019

We have served as the auditor of one or more of the Brighthouse investment companies since 1983.

BHFTII-23

Brighthouse Funds Trust II

Trustees and Officers

MANAGEMENT OF THE TRUSTS

The Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BHF I” and “BHF II”, respectively, and collectively the “Trusts”) supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, among other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’sday-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the BHF I Trust’s and BHF II Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Interested Trustee
John Rosenthal* (1960)	Trustee	Indefinite; From May 2016 (Trust I and Trust II) to present	Chief Investment Officer, Brighthouse Financial, Inc. (2017 to present); until 2017, Senior Managing Director and Head of Global Portfolio Management, MetLife, Inc.	72	None
Independent Trustees
Dawn M. Vroegop (1966)	Trustee and Chairman of the Board	Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chairman	Private Investor.	72	Trustee, Driehaus Mutual Funds.**
Stephen M. Alderman (1959)	Trustee	Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present	Shareholder in the law firm of Garfield and Merel, Ltd.	72	None
Robert J. Boulware (1956)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Managing Director, Pilgrim Funds, LLC (private equity fund).	72	Trustee, Vertical Capital Income Fund(closed-end fund);** Director, Gainsco, Inc. (auto insurance);** Trustee, SharesPost 100 Fund(closed-end fund).**
Susan C. Gause (1952)	Trustee	Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present	Private Investor.	72	Trustee, HSBC Funds.**

BHFTII-24

Brighthouse Funds Trust II

Trustees and Officers—(Continued)

Name and Year of Birth	Current Position(s) Held with Registrant	Term of Office and Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)	Number of Portfolios in Brighthouse Funds Complex(2) Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years(1)
Nancy Hawthorne (1951)	Trustee	Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present	Partner, Hawthorne Financial Advisors, LLC (registered investment advisor); until 2014, Chief Executive Officer, Clerestory LLC (corporate advisor).	72	Director and Chairman of the Board of Directors, THL Credit, Inc.;** Director and Chairman of the Board, Avid Technology, Inc.;** Director, CRA International, Inc.**
Barbara A. Nugent (1956)	Trustee	Indefinite; From January 2014 (Trust I and Trust II) to present	President, True North Board Governance, LLC (consulting); until December 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP.	72	Independent Lead Trustee, BMT Investment Funds**
Christopher J. Towle (1957)	Trustee	Indefinite; From April 2018 (Trust I and Trust II) to present	Retired; until 2014, Partner, Portfolio Manager, Director of High Yield and Convertible Strategies, Lord Abbett & Co.	72	Trustee, Driehaus Mutual Funds**

Officers

Name and Year of Birth	Position(s) Held with Registrant	Length of Time Served	Principal Occupation(s) During the Past 5 Years(1)
Executive Officers
Kristi Slavin (1973)	President and Chief Executive Officer, of Trust I and Trust II	From May 2016 (Trust I and Trust II) to present	President, Brighthouse Investment Advisers, LLC (2016-present); formerly, Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.; Vice President, Trust I and Trust II(2015-2016).
Alan R. Otis (1971)	Chief Financial Officer and Treasurer, of Trust I and Trust II	From November 2017 (Trust I and Trust II) to present	Senior Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017).
Andrew L. Gangolf (1954)	Secretary, of Trust I and Trust II	From May 2011 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Senior Vice President, MetLife Advisers, LLC (2011-2017); until 2011, Senior Vice President & Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (1963)	Chief Compliance Officer (“CCO”), of Trust I and Trust II	From February 2014 (Trust I and Trust II) to present	Senior Vice President and CCO, Brighthouse Investment Advisers, LLC (2017-present); Head of Investments Compliance, Vice President, Brighthouse Financial, Inc. (2017-present); formerly, Vice President, MetLife, Inc. (2013-2017); Senior Vice President and CCO, MetLife Advisers, LLC (2013-2017.)
Victor Soto (1978)	Vice President of Trust I and Trust II	From May 2018 (Trust I and Trust II) to present	Executive Vice President, Brighthouse Investment Advisers, LLC (2016-present); Assistant Vice President, MetLife Inc. (2015-2017); Portfolio Manager, 1st Global (2013-2015).

* Mr. Rosenthal is an “interested person” of the Trusts because of his position with Brighthouse Financial, Inc., the current parent company of Brighthouse Investment Advisers, LLC.

** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, Brighthouse Financial, Inc., MetLife, Inc. or the Manager are omitted if not materially different.

(2) The Fund Complex includes 43 BHF I Portfolios and 29 BHF II Portfolios.

BHFTII-25

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

At anin-person meeting held on November6-8, 2018 (the “November Meeting”), the Boards of Trustees (the “Board”) of Brighthouse Funds Trust I and Brighthouse Funds Trust II (“BFT I” and “BFT II,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with Brighthouse Investment Advisers, LLC (the “Adviser”) and the applicablesub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investmentsub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In making those approvals, the Board reviewed a variety of materials that were provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year informed the Board’s decision to renew the Agreements. In particular, the information for each Portfolio included, but was not limited to, investment performance reports, and reports on expenses, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on October 17, 2018 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “October Meeting”). At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees communicatedfollow-up matters for management to address at the November Meeting. The Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio that was prepared by Broadridge (“Broadridge”), an independent organization. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions from the Independent Trustees relating to the business, operations and performance of the Adviser and theSub-Advisers that the Adviser andSub-Advisers had prepared specifically for the renewal process, and reviewed aPortfolio-by-Portfolio analysis of the profitability to the Adviser of each Advisory Agreement, which was prepared by the Adviser for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and eachSub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent and quality of the services provided by the Adviser andSub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on aPortfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser and theSub-Advisers, as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the hiring and oversight of theSub-Advisers, trading practices and oversight of transition management (as applicable), compliance programs and personnel, and risk management, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule38a-l under the 1940 Act. The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular and periodic telephonic andin-person meetings with theSub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

BHFTII-26

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

With respect to the services provided by each of theSub-Advisers, the Board considered a variety of information that the Adviser and eachSub-Adviser prepared for the Board’s review. The Board considered eachSub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that eachSub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. In particular, the Board considered, among other things, theSub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed eachSub-Adviser’s history and investment experience, as well as information provided regarding the qualifications, background and responsibilities of theSub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, eachSub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by theSub-Advisers in connection with marketing activities and considered representations from the Adviser that those payments were not considered in the Adviser’s recommendation to renew any of theSub-Advisory Agreements.

Performance. The Board placed emphasis on the performance of each Portfolio in light of, among other things, its importance to investors. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with representatives of JDL during the October Meeting to review the JDL Report. The Board also compared the performance records of the Portfolios to those of comparable funds and other accounts that were managed by the relevantSub-Adviser, to the extent such information was available. The Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and those of the other funds in a Broadridge category (for example, the investment objectives(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on eachSub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management andsub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peersub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peersub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to aSub-Adviser by the Adviser with respect to the Portfolio to the fee payable to theSub-Adviser by other comparable funds and other accounts, to the extent such information was available.

The Board noted that thesub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fees, and that the Adviser negotiates the fees at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability to the Adviser of each Advisory Agreement, on aPortfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to theSub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with aSub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

BHFTII-27

Brighthouse Funds Trust II

Western Asset Management U.S. Government Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with Advisory Agreements containing breakpoints generally have breakpoints in the correspondingSub-Advisory Agreement. The Board considered the effective fees under the Advisory Agreement andSub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio’s growth in size, and reduction in size, on various fee schedules and the Board reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by eachSub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board requested, received, and considered information from the Adviser regarding possible conflicts of interest in the form of material benefits to the Adviser resulting from the Adviser’s affiliations and business relationships, as relevant. The Board considered the services that are provided to the Trusts by its service providers, and the manner in which any conflicts were mitigated.

*  *  *

Western Asset Management U.S. Government Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Western Asset Management Company regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for theone-year period ended June 30, 2018, and underperformed the median of its Performance Universe and the average of its Morningstar Category for the three-year and five-year periods ended June 30, 2018. The Board further considered that the Portfolio outperformed its benchmark, the Bloomberg Barclays U.S. Intermediate Government Bond Index, for theone-, three-, and five-year periods ended September 30, 2018. The Board also noted that the Portfolio outperformed its blended benchmark for theone-year and three-year periods ended September 30, 2018, and underperformed its blended benchmark for the five-year period ended September 30, 2018. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median and Expense Universe median, and above theSub-advised Expense Universe median. The Board considered that the Portfolio’s total expenses (exclusive of 12b 1 fees) were below the Expense Group median, Expense Universe median, andSub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were equal to the asset-weighted average of comparable funds selected by Broadridge at the Portfolio’s current size. The Board also noted that the Portfolio’s contractualsub-advisory fees were below the averages of theSub-advised Expense Group and theSub-advised Expense Universe at the Portfolio’s current size.

BHFTII-28

Item 2.  Code of Ethics.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions (the “Code of Ethics”). During the period covered by this report, no material amendments were made to the provisions of the Code of Ethics, nor did the registrant grant any waivers, including any implicit waivers, from any provision of the Code of Ethics.

Item 3.  Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 ofForm N-CSR) serving on its audit committee. Robert J. Boulware, Susan C. Gause, Nancy Hawthorne, and Dawn M. Vroegop have each been determined to be an “audit committee financial expert” and each is “independent” (as each term is defined in Item 3 ofForm N-CSR).

Item 4.  Principal Accountant Fees and Services.

Information provided in response to Item 4 includes amounts billed during the applicable time period for services rendered by Deloitte & Touche LLP (“Deloitte”), the registrant’s principal accountant.

(a)         Audit Fees

The aggregate fees billed for professional services rendered by Deloitte for the audit of the registrant’s annual financial statements and for services that are normally provided by Deloitte in connection with statutory and regulatory filings for the fiscal years ended December 31, 2017 and December 31, 2018 were $1,399,518 and $1,399,020, respectively.

(b)         Audit-Related Fees

During the fiscal years ended December 31, 2017 and December 31, 2018, Deloitte billed $0 and $5,510, respectively, for assurance and related services that relate directly to the operations and financial reporting of the registrant, the registrant’s investment adviser or any other entity controlling, controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant. Represent fees for services rendered to the registrant related to reorganizations involving certain portfolios of the registrant for fiscal year ended December 31, 2018.

(c)         Tax Fees

The aggregate fees billed for professional services rendered by Deloitte for tax compliance, tax advice and tax planning in the form of preparation of excise filings and income tax returns for the fiscal years ended December 31, 2017 and December 31, 2018 were $203,424 and $198,884, respectively. Represent fees for services rendered to the registrant for review of tax returns for the year end December 31, 2017 and for the fiscal year end December 31, 2018.

During the fiscal years ended December 31, 2017 and December 31, 2018, no fees for tax compliance, tax advice or tax planning services that relate directly to the operations and financial reporting of the registrant were billed by Deloitte to the registrant’s investment adviser or any other entity controlling,

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controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant.

(d)         All Other Fees

The registrant was not billed for any other products or services provided by Deloitte for the fiscal years ended December 31, 2017 and December 31, 2018 other than the services reported in paragraphs (a) through (c) above.

During the fiscal years ended December 31, 2017 and December 31, 2018, no fees for other products or services that relate directly to the operations and financial reporting of the registrant, other than the services reported in paragraphs (a) through (c) above, were billed by Deloitte to the registrant’s investment adviser or any other entity controlling, controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant.

(e)(1)    The registrant’s Audit Committee has establishedpre-approval procedures pursuant to paragraph (c)(7)(i)(B) of Rule2-01 of RegulationS-X, which include regularpre-approval procedures and interimpre-approval procedures. Under the regularpre-approval procedures, the Audit Committeepre-approves at its regularly scheduled meetings audit andnon-audit services that are required to bepre-approved under paragraph (c)(7) of Rule2-01 of RegulationS-X. Under the interimpre-approval procedures, any member of the Audit Committee who is an independent Trustee is authorized topre-approve proposed services that arise between regularly scheduled Audit Committee meetings and that need to commence prior to the next regularly scheduled Audit Committee meeting. Such Audit Committee member must report to the Audit Committee at its next regularly scheduled meeting on thepre-approval decision.

(2)         Not applicable.

(f)         Not applicable.

(g)         The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant fornon-audit services rendered to the registrant, its investment adviser, and adviser affiliates that provide ongoing services to the registrant for 2017 and 2018 were $38,803 and $48,438, respectively.

(h)         The Audit Committee of the registrant’s Board of Trustees considered the provision ofnon-audit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X and concluded that such services are compatible with maintaining the principal accountant’s independence.

Item 5.  Audit Committee of Listed Registrants.

Not applicable.

Item 6.  Investments.

(a)         Schedule of Investments is included as a part of the report to shareholders included under Item 1 of thisForm N-CSR.

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(b)         Not applicable.

Item 7.     Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.

Not applicable.

Item 8.  Portfolio Managers ofClosed-End Management Investment Companies.

Not applicable.

Item 9.    Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10.  Submission of Matters to a Vote of Security Holders.

The registrant does not have procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11.  Controls and Procedures.

(a)        The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Act) as of a date within 90 days of the filing date of this report on FormN-CSR, that the design and operation of such procedures provide reasonable assurance that information required to be disclosed by the registrant in this report on FormN-CSR is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)        There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.    Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a)         Not applicable.

(b)         Not applicable.

Item 13.  Exhibits

(a)(1)    Code of Ethics is attached hereto.

(a)(2)    The certifications required by Rule30a-2(a) under the 1940 Act are attached hereto.

(a)(3)    Not applicable.

(a)(4)    Not applicable.

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(b)         The certifications required by Rule30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BRIGHTHOUSE FUNDS TRUST II

By:	/s/ Kristi Slavin
	Kristi Slavin
	President and Chief Executive Officer
Date:	March 8, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Kristi Slavin
	Kristi Slavin
	President and Chief Executive Officer
Date:	March 8, 2019

By:	/s/ Alan R. Otis
	Alan R. Otis
	Chief Financial Officer and Treasurer
Date:	March 8, 2019

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