<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02224
---------
MML Series Investment Fund
--------------------------
(Exact name of registrant as specified in charter)
1295 State Street, Springfield, MA 01111
---------------------------------- -----
(Address of principal executive offices) (Zip code)
Frederick C. Castellani
1295 State Street, Springfield, MA 01111
----------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 413-788-8411
------------
Date of fiscal year end: 12/31/2003
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Date of reporting period: 12/31/2003
----------
<Page>
ITEM 1 REPORTS TO STOCKHOLDERS.
(Annual Report for the period 1/1/03 through 12/31/03 is filed herewith)
<Page>
MML SERIES INVESTMENT FUND
ANNUAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2003
[GRAPHIC]
MML INFLATION-PROTECTED BOND FUND
MML LARGE CAP VALUE FUND
MML EQUITY INDEX FUND
MML ENHANCED INDEX CORE EQUITY FUND
MML GROWTH EQUITY FUND
MML OTC 100 FUND
MML SMALL CAP EQUITY FUND
MML SMALL COMPANY OPPORTUNITIES FUND
MML SMALL CAP GROWTH EQUITY FUND
MML EMERGING GROWTH FUND
INVEST
INSURE
RETIRE
[MASSMUTUAL FINANCIAL GROUP(SM) LOGO]
YOU CAN'T PREDICT. YOU CAN PREPARE.(R)
<Page>
TABLE OF CONTENTS
<Table>
TO OUR SHAREHOLDERS i
MML INFLATION-PROTECTED BOND FUND
Portfolio Manager Report 1
Portfolio of Investments 3
Financial Statements 4
MML LARGE CAP VALUE FUND
Portfolio Manager Report 8
Portfolio of Investments 10
Financial Statements 12
MML EQUITY INDEX FUND
Portfolio Manager Report 16
Portfolio of Investments 18
Financial Statements 24
MML ENHANCED INDEX CORE EQUITY FUND
Portfolio Manager Report 29
Portfolio of Investments 31
Financial Statements 36
MML GROWTH EQUITY FUND
Portfolio Manager Report 40
Portfolio of Investments 42
Financial Statements 46
MML OTC 100 FUND
Portfolio Manager Report 50
Portfolio of Investments 52
Financial Statements 54
MML SMALL CAP EQUITY FUND
Portfolio Manager Report 58
Portfolio of Investments 60
Financial Statements 62
MML SMALL COMPANY OPPORTUNITIES FUND
Portfolio Manager Report 66
Portfolio of Investments 68
Financial Statements 70
MML SMALL CAP GROWTH EQUITY FUND
Portfolio Manager Report 74
Portfolio of Investments 76
Financial Statements 79
MML EMERGING GROWTH FUND
Portfolio Manager Report 83
Portfolio of Investments 85
Financial Statements 88
NOTES TO FINANCIAL STATEMENTS 92
INDEPENDENT AUDITORS' REPORT 102
DIRECTORS AND OFFICERS (UNAUDITED) 103
FEDERAL TAX INFORMATION (UNAUDITED) 106
</Table>
<Page>
MML SERIES INVESTMENT FUND - LETTER TO SHAREHOLDERS
December 31, 2003
TO OUR SHAREHOLDERS
[PHOTO OF FREDRICK C. CASTELLANI]
FREDRICK C. CASTELLANI
"THE RENEWED STRENGTH IN ECONOMIC GROWTH AND THE RALLY IN THE EQUITY MARKETS
DURING 2003 HIGHLIGHT WHY WE BELIEVE IT IS IMPORTANT FOR PARTICIPANTS TO STAY
THE COURSE - AS WELL AS MAINTAIN A PROPERLY DIVERSIFIED PORTFOLIO. WE BELIEVE
THIS IS THE BEST STRATEGY WHEN TRYING TO ACHIEVE LONG-TERM RETIREMENT GOALS."
2003: A YEAR OF MANY HAPPY RETURNS
Good times returned in 2003 for many equity investors. The stock market indexes
and most equity funds generated returns in excess of 25%, with more aggressive
strategies doubling that advance. The bond market lagged with single-digit
returns in the plain vanilla, high quality corporate and government agency
categories, but compelling gains of over 25% also were found in the high yield
and foreign bond markets.
Only a year ago, investors were faced with three straight years of stock market
losses - with grave concerns about a possible fourth "down" year. Their
pessimism was not without merit: the economy was sluggish, unemployment was
rising and war was on the horizon. Fortunately, the fundamentals improved as the
year progressed, leading to increased optimism and strong performance.
Stronger-than-expected economic growth and improving corporate profitability
fueled the equity markets. U.S. Gross Domestic Product, a broad measure of
economic activity, grew by an 8.2% annualized rate in the third quarter, the
strongest advance in nearly 20 years. Providing the foundation were strong
corporate earnings reports, evidence of recovery in business investment,
continued strength in consumer spending, the Federal Reserve (Fed) policy of
maintaining low interest rates, tax reductions, increased government spending
and positive strides in the war on terror.
AGGRESSIVE STOCKS PREVAILED
As in a typical market rally, during the third and fourth quarters, the more
aggressive categories led the way, with small-cap outperforming large-cap,
international leading domestic, growth leading value, and high yield leading
Treasuries. The technology-heavy NASDAQ led the major stock indexes, with the
Russell 2000 small-cap index close behind, followed by the MSCI EAFE
international equity benchmark. Bringing up the rear were the Dow Jones
Industrial Average and the S&P 500(R) Index - but both still turned in
impressive double-digit returns for the six-month period.
BOND RETURNS LAGGED
Over the six months ending December 31, 2003, bonds trailed stocks by a wide
margin. In the third quarter, the bond market's woes were punctuated by a brutal
July, when the Lehman Brothers Aggregate Bond Index had its worst monthly
decline in over 20 years. This left many investors who had flocked to the
"safety" of the bond market - leaving stocks behind - rudely surprised. (This
turn of events also underscores why we continuously caution investors not to use
the recent past performance of any asset category as the primary reason for
investing.) The fourth quarter was not much better for bond investors, as the
Lehman Brothers Aggregate Bond Index advanced a paltry 0.32%.
THE 2004 OUTLOOK - TEMPERED OPTIMISM
The broad-based stock market rally in 2003 was supported by several factors that
continue to provide favorable indicators for 2004, including:
- - A U.S. economy that seems to be in the early stages of expansion
- - Interest rates which are at a 45-year low
- - Low inflation, which should allow the Fed to maintain current interest rate
policy
- - Reduced taxes
- - Improving corporate profitability and earnings growth
i
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Conversely, it is unlikely that the market will be as strong
or as broad based in 2004 as it was last year, due to several factors:
- - High unemployment
- - Interest rates that are more likely to rise than decline
- - High debt ratios for consumers and government
- - Easier comparisons for corporate profit growth (the low or negative profit
numbers companies posted in 2001/2002) are now behind us.
In closing, as the euphoria of 2003's investment performance abates, pressure
will be on the economy and stock prices to sustain the rally. Emphasis will
likely be on inflation and interest rates, earnings growth and employment. While
last year's gains in the market are encouraging and give stock investors a
reason to smile, we continue to urge all investors to maintain focus on
long-term investment objectives. This should include maintaining a diversified
portfolio in an effort to better weather the stock market's inevitable ups and
downs.
/s/ Frederick C. Castellani
Frederick C. Castellani
PRESIDENT
ii
<Page>
MML INFLATION-PROTECTED BOND FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve as high a total
OBJECTIVE OF THE MML rate of return on an annual basis as is considered
INFLATION-PROTECTED consistent with prudent investment risk and the
BOND FUND? preservation of capital. The Fund normally invests:
- at least 80% of its assets in Treasury
Inflation-Protected Securities ("TIPS") of varying
maturities guaranteed as to timely payment of
principal and interest by the full faith and
credit of the U.S. government; and
- up to 20% of its assets in non-inflation-indexed
U.S. securities or non-U.S. securities.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 7.01%, versus an 8.40% return for the
Lehman U.S. Treasury Inflation Note Index.
HOW DO TIPS PROTECT Like many other fixed-income securities, TIPS pay
AGAINST INFLATION? income twice a year, based on a fixed coupon rate.
However, both the principal and the interest payment
are adjusted for the level of inflation. The inflation
rate--as measured by the Consumer Price Index--results
in an adjustment to the principal amount of an
inflation-protected security. The coupon rate is then
applied to the adjusted principal amount to determine
the interest payment. For example, assuming an
inflation rate of 3% and a security with a par value of
$1,000 and a coupon rate of 1.75%, the adjusted
principal amount after one year would be $1,030 ($1,000
increased by 3%). The interest payment would be
calculated by multiplying $1,030 by 1.75% instead of
using the original $1,000 par value to calculate the
amount of interest.
WHAT WAS THE The third quarter was characterized by positive
INVESTMENT BACKGROUND economic surprises, with many companies announcing
DURING THE PERIOD? better-than-expected results. Gross Domestic Product
(GDP) was revised upward for the second quarter to an
annual rate of 3.3%. This positive economic and
business momentum continued during the fourth quarter,
as investors became increasingly confident.
Another positive development was the increase in hiring
within the temporary sector of the job market-often
viewed as a precursor to an improvement in the
permanent job sector. Conversely, non-farm payrolls,
which posted seven straight months of declines through
August, showed only a modest increase in September,
making this a "jobless recovery." The positive economic
and business momentum seen in the third quarter
continued during the closing quarter of 2003.
Investors' increased confidence was unabated through
year-end.
The monetary stimulus that the Federal Reserve (Fed)
started back in 2002 remained in place, with interest
rates left unchanged. It is widely believed that the
Fed has room to keep rates at current levels well into
2004. This is despite the stunning GDP figure of 8.2%
for the third quarter. For the year, the GDP remained
at a more reasonable figure, in the 4% to 5% range.
While this does increase the inflationary pressures, we
believe that these pressures are manageable.
HOW DID THIS TIPS had a strong 2003, returning over 8% for the year.
INVESTMENT ENVIRONMENT While this return was not as strong as 2002's, the
AFFECT TIPS? performance is still being driven by demand. Supply
continues to be low, with Treasury issuance only twice
a year. (The next rounds are scheduled for January and
July 2004.) We have seen some issuance outside the of
the government sector, with some agency offerings as
well as a few corporate issuances; however, the Fund
remains highly concentrated.
WHAT IS YOUR OUTLOOK? Looking forward, we expect a continuation of the
improving outlook. We expect the Federal Reserve to
remain on the sidelines as far as interest rates are
concerned, at least through the first half of 2004. If
we experience an environment where both interest rates
are rising and inflation is increasing, the Fund should
benefit.
1
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[CHART]
DURATION DIVERSIFICATION (12/31/03)
MML INFLATION-PROTECTED
BOND FUND
AVERAGE DURATION = 4.48 YEARS
<Table>
LESS THAN 1 YEAR 11.9%
1-3 YEARS 26.3%
3-5 YEARS 26.3%
5-10 YEARS 35.5%
</Table>
[CHART]
QUALITY STRUCTURE (12/31/03)
MML TREASURY-INFLATION PROTECTED
BOND FUND
<Table>
U.S. Governments Cash Equivalents Aaa/AAA 88.8%
Aa/AA 2.8%
A 8.4%
</Table>
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Inflation-Protected Bond Fund and the U.S.
Treasury Inflation Note Index
MML SERIES INVESTMENT FUND
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
TOTAL RETURN 1/1/03 - 12/31/03 8/30/02 - 12/31/03
MML Inflation-
Protected Bond Fund 7.01% 7.67%
- --------------------------------------------------------------
Lehman U.S. Treasury
Inflation Note Index 8.40% 8.67%
</Table>
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
ML INFLATION-PROTECTED BOND FUND LEHMAN U.S. TREASURY INFLATION NOTE INDEX
8/30/2002 $ 10,000 $ 10,000
Dec-2002 $ 10,317 $ 10,306
Dec-2003 $ 11,040 $ 11,176
</Table>
THE INVESTMENT RETURN AND PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE
WITH MARKET CONDITIONS SO THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A
PROFESSIONALLY MANAGED MUTUAL FUND, WHILE THE LEHMAN U.S. TREASURY INFLATION
NOTE INDEX IS UNMANAGED AND DOES NOT INCUR EXPENSES, AND CANNOT BE PURCHASED
DIRECTLY BY INVESTORS. THE FUND'S RETURN REFLECTS CHANGES IN THE NET ASSET VALUE
PER SHARE WITHOUT THE DEDUCTION OF ANY PRODUCT CHARGES. THE INCLUSION OF THESE
CHARGES WOULD HAVE REDUCED THE PERFORMANCE SHOWN HERE. PAST PERFORMANCE IS NO
INDICATION OF FUTURE RESULTS.
2
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MML INFLATION-PROTECTED BOND FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
BONDS & NOTES -- 97.9%
CORPORATE DEBT -- 15.4%
Household Finance Corp.
4.350% 12/10/2013 $ 1,500,000 $ 1,477,125
International Bank for
Reconstruction &
Development
3.000% 12/10/2013 1,500,000 1,500,000
Morgan Stanley Series C
4.390% 11/01/2013 1,000,000 988,040
SLM Corp.
4.500% 11/21/2013 1,500,000 1,473,750
-------------
TOTAL CORPORATE DEBT
(COST $5,491,947) 5,438,915
-------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 22.7%
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) -- 9.1%
PASS-THROUGH SECURITIES
FHLMC
3.625% 09/15/2008 1,250,000 1,256,489
FHLMC
4.500% 07/15/2013 2,000,000 1,973,399
-------------
TOTAL PASS-THROUGH SECURITIES 3,229,888
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) -- 8.3%
Other
FNMA
(Benchmark Note)
2.500% 06/15/2008 1,000,000 965,367
FNMA
(Benchmark Note)
4.375% 03/15/2013 2,000,000 1,965,801
-------------
TOTAL OTHER 2,931,168
-------------
OTHER AGENCIES -- 5.3%
Tennessee
Valley Authority
3.375% 01/15/2007 1,751,565 1,878,466
-------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(COST $8,022,793) 8,039,522
-------------
U.S. TREASURY OBLIGATIONS -- 59.8%
U.S. TREASURY BONDS -- 34.6%
U.S. Treasury
Inflation Index
3.000% 07/15/2012 $ 2,685,586 $ 2,923,931
U.S. Treasury
Inflation Index
3.375% 04/15/2032 661,854 817,080
U.S. Treasury
Inflation Index
3.625% 04/15/2028 2,247,665 2,781,837
U.S. Treasury
Inflation Index
3.875% 01/15/2009 2,070,045 2,338,504
U.S. Treasury
Inflation Index
3.875% 04/15/2029 2,622,159 3,393,237
-------------
TOTAL U.S. TREASURY BONDS 12,254,589
-------------
U.S. TREASURY NOTES -- 25.2%
U.S. Treasury
Inflation Index
1.875% 07/15/2013 1,450,526 1,439,194
U.S. Treasury
Inflation Index
3.375% 01/15/2007 373,667 404,728
U.S. Treasury
Inflation Index
3.375% 01/15/2012 797,061 890,716
U.S. Treasury
Inflation Index
3.500% 01/15/2011 1,514,747 1,697,700
U.S. Treasury
Inflation Index
3.625% 01/15/2008 2,422,013 2,679,352
U.S. Treasury
Inflation Index
4.250% 01/15/2010 1,588,951 1,840,452
-------------
TOTAL U.S. TREASURY NOTES 8,952,142
-------------
TOTAL U.S. TREASURY
OBLIGATIONS
(COST $20,284,041) 21,206,731
-------------
TOTAL BONDS & NOTES
(COST $33,798,781) 34,685,168
-------------
SHORT-TERM INVESTMENTS -- 0.7%
REPURCHASE AGREEMENT
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/2003, 0.72%,
due 01/02/2004(a) $ 258,110 $ 258,110
-------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 258,110
-------------
TOTAL INVESTMENTS -- 98.6%
(COST $34,056,891)* 34,943,278
OTHER ASSETS/
(LIABILITIES) -- 1.4% 492,505
-------------
NET ASSETS -- 100.0% $ 35,435,783
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
* Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $258,120. Collateralized by U.S. Government Agency
obligation with a rate of 4.625%, maturity date of 04/25/2016, and an
aggregate market value, including accrued interest, of $271,015.
The accompanying notes are an integral part of the financial statements.
3
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MML INFLATION-PROTECTED BOND FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $33,798,781) (NOTE 2) $ 34,685,168
Short-term investments, at amortized cost (NOTE 2) 258,110
-----------------
Total Investments 34,943,278
Receivables from:
Fund shares sold 166,715
Interest 367,510
-----------------
Total assets 35,477,503
-----------------
LIABILITIES:
Payables for:
Fund shares repurchased 307
Directors' fees and expenses (NOTE 3) 1,000
Affiliates (NOTE 3):
Investment management fees 18,628
Investment advisor 400
Accrued expense and other liabilities 21,385
-----------------
Total liabilities 41,720
-----------------
NET ASSETS $ 35,435,783
=================
NET ASSETS CONSIST OF:
Paid-in capital $ 34,407,506
Undistributed net investment income 850
Accumulated net realized gain on investments 141,040
Net unrealized appreciation on investments 886,387
-----------------
$ 35,435,783
=================
SHARES OUTSTANDING: 3,306,430
=================
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 10.72
=================
</Table>
The accompanying notes are an integral part of the financial statements.
4
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Interest $ 607,816
-----------------
EXPENSES:
Investment management fees (NOTE 3) 112,458
Audit and legal fees 18,322
Trustee reporting 12,546
Directors' fees (NOTE 3) 1,246
Custody fees 708
Shareholder reporting fees 216
-----------------
Total expenses 145,496
Expenses waived (NOTE 3) (12,422)
-----------------
Net expenses 133,074
-----------------
NET INVESTMENT INCOME 474,742
-----------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions 163,191
Net change in unrealized appreciation (depreciation) on investments 647,327
-----------------
NET REALIZED AND UNREALIZED GAIN 810,518
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,285,260
=================
</Table>
The accompanying notes are an integral part of the financial statements.
5
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002*
----------------- ------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 474,742 $ 86,882
Net realized gain on investment transactions 163,191 -
Net change in unrealized appreciation (depreciation) on investments 647,327 239,060
----------------- ------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,285,260 325,942
----------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income (474,521) (87,058)
From net realized gains (21,371) -
NET FUND SHARE TRANSACTIONS (NOTE 5) 23,856,740 10,550,791
----------------- ------------------
TOTAL INCREASE IN NET ASSETS 24,646,108 10,789,675
NET ASSETS:
Beginning of period 10,789,675 -
----------------- ------------------
End of period (including undistributed net investment income of $850 and
distributions in excess of net investment income of $151, respectively) $ 35,435,783 $ 10,789,675
================= ==================
</Table>
* FOR THE PERIOD FROM AUGUST 30, 2002 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2002.
The accompanying notes are an integral part of the financial statements.
6
<Page>
MML INFLATION-PROTECTED BOND FUND - FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED PERIOD ENDED
12/31/03 12/31/02+
---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.23 $ 10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.23 0.09
Net realized and unrealized gain on investments 0.50 0.23
---------- ------------
Total income from investment operations 0.73 0.32
---------- ------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.23) (0.09)
From net realized gains (0.01) -
---------- ------------
Total distributions (0.24) (0.09)
---------- ------------
NET ASSET VALUE, END OF PERIOD $ 10.72 $ 10.23
========== ============
TOTAL RETURN(a) 7.01% 3.17%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 35,436 $ 10,790
Ratio of expenses to average daily net assets:
Before expense waiver 0.78% 1.57%*
After expense waiver# 0.71% 0.71%*
Net investment income to average daily net assets 2.53% 2.54%*
Portfolio turnover rate 25% 0%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
+ FOR THE PERIOD FROM AUGUST 30, 2002 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2002.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE CERTAIN
FEES AND EXPENSES OF THE FUND FOR THE PERIOD AUGUST 30, 2002 THROUGH
DECEMBER 31, 2002 AND FOR THE YEAR ENDED DECEMBER 31, 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
7
<Page>
MML LARGE CAP VALUE FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML growth of capital and income by investing primarily in
LARGE CAP VALUE FUND? a diversified portfolio of equity securities of larger,
well-established companies (generally those with market
capitalizations over $5.0 billion), using a
value-oriented investment strategy.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 29.60%, outperforming the 28.67% return
of the S&P 500 Index, a market capitalization-weighted,
unmanaged index of 500 common stocks.
WHAT WAS THE In the three months ended September 30, 2003, U.S.
INVESTMENT BACKGROUND equities rose slightly, preserving gains from the first
DURING THE PERIOD? half of the year through the summer. The stock market,
as represented by the S&P 500 Index, returned 2.7% in
the third quarter. In the fourth quarter, the stock
market advanced more heartily, returning 12.2%. Over
the same period, the S&P Barra Value and Russell 1000
Value Indexes gained 14.5% and 14.2%, respectively.
WHAT FACTORS During the third quarter, positions in the financial
CONTRIBUTED TO THE and industrial sectors contributed to the Fund's
FUND'S PERFORMANCE - performance, while those in health care, energy and
AND HOW DID YOU consumer staples detracted. These results were
RESPOND? primarily the effect of stock selection, rather than
the result of a specific sector strategy. During the
three-month period ending December 31, top-performing
positions included Altria Group, Tyco International,
American International Group, HSBC Holdings and
Progressive Corp. Takefuji and Safeway were among the
positions that detracted from performance during the
period.
During the fourth quarter, notable changes to the
portfolio included the purchase of HCA and Fifth Third
Bancorp and the sale of Dover and Safeway. While we
continued to have confidence in Dover's management
team, we sold our position in the company because we
felt that its businesses no longer justified the
company's valuation. We sold the portfolio's position
in Safeway on the belief that competitive threats (in
particular from Wal-Mart) could lead to the
deterioration of Safeway's long-term earnings power.
WHAT IS YOUR OUTLOOK? We anticipate the current "trading range" environment
to persist into the foreseeable future. We believe that
market averages may be challenged for some time, but
that stock-picking leaves open the possibility of
achieving above-average returns.
8
<Page>
MML LARGE CAP VALUE FUND
LARGEST STOCK HOLDINGS (12/31/03)
American Express Co.
Altria Group, Inc.
American International Group, Inc.
Berkshire Hathaway, Inc. Cl. A
Citigroup, Inc.
Tyco International Limited
Wells Fargo & Co.
HSBC Holdings PLC
Sealed Air Corp.
Bank One Corp.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Large Cap Value Fund and the S&P 500 Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/1/00 - 12/31/03
MML Large Cap
Value Fund 29.60% -1.26%
- ------------------------------------------------------------
S&P 500 Index 28.67% -5.60%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML LARGE CAP VALUE FUND S&P 500 INDEX
------------------------ -------------
5/1/2000 $ 10,000 $ 10,000
12/2000 $ 9,895 $ 9,162
12/2001 $ 8,791 $ 8,074
12/2002 $ 7,364 $ 6,290
12/2003 $ 9,544 $ 8,094
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE S&P 500 INDEX IS UNMANAGED AND DOES NOT INCUR EXPENSES,
AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN REFLECTS
CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY PRODUCT
CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED IF THEY
REFLECTED THESE CHARGES.
9
<Page>
MML LARGE CAP VALUE FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
EQUITIES -- 90.8%
ADVERTISING -- 0.4%
WPP Group PLC Sponsored
ADR (United Kingdom) 4,200 $ 206,430
-------------
BANKING, SAVINGS & LOANS -- 20.1%
Bank One Corp. 42,300 1,928,457
Citigroup, Inc. 44,900 2,179,446
Fifth Third Bancorp 12,100 715,110
Golden West Financial Corp. 17,300 1,785,187
HSBC Holdings PLC 128,651 2,022,018
Lloyds TSB Group PLC
Sponsored ADR
(United Kingdom) 15,800 514,290
Providian Financial Corp.* 8,000 93,120
State Street Corp. 3,100 161,448
Wells Fargo & Co. 35,600 2,096,484
-------------
11,495,560
-------------
BEVERAGES -- 2.1%
Diageo PLC Sponsored
ADR (United Kingdom)18,500 977,910
Heineken Holding NV Cl. A7,400 253,161
-------------
1,231,071
-------------
BROADCASTING, PUBLISHING & PRINTING -- 2.0%
Gannett Co., Inc. 4,800 427,968
Lagardere S.C.A. SA 12,100 698,363
-------------
1,126,331
-------------
BUILDING MATERIALS & CONSTRUCTION -- 1.5%
Martin Marietta
Materials, Inc. 9,100 427,427
Vulcan Materials Co. 9,000 428,130
-------------
855,557
-------------
COMMERCIAL SERVICES -- 3.3%
Block (H&R), Inc. 11,500 636,755
Dun & Bradstreet Corp.*11,450 580,630
Moody's Corp. 10,800 653,940
-------------
1,871,325
-------------
COMPUTERS & INFORMATION -- 1.8%
Lexmark
International, Inc.* 12,900 1,014,456
-------------
CONTAINERS -- 3.4%
Sealed Air Corp.* 36,400 1,970,696
-------------
DIVERSIFIED FINANCIAL -- 0.5%
Takefuji Corp. 6,400 299,188
-------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 0.5%
Agere Systems, Inc. Cl. A* 88,000 268,400
-------------
ENERGY -- 6.2%
ConocoPhillips 20,930 $ 1,372,380
Devon Energy Corp. 17,900 1,024,954
EOG Resources, Inc. 12,900 595,593
Occidental Petroleum Corp. 12,700 536,448
-------------
3,529,375
-------------
FINANCIAL SERVICES -- 14.5%
American Express Co. 86,000 4,147,780
Berkshire
Hathaway, Inc. Cl. A* 28 2,359,000
Centerpoint
Properties Corp. 14,100 1,056,090
Janus Capital Group, Inc. 8,400 137,844
Morgan Stanley 10,600 613,422
-------------
8,314,136
-------------
FOODS -- 1.4%
Hershey Foods Corp. 6,400 492,736
Kraft Foods, Inc. Cl. A 10,000 322,200
-------------
814,936
-------------
HEALTHCARE -- 1.0%
HCA, Inc. 13,000 558,480
-------------
INDUSTRIAL - DIVERSIFIED -- 3.7%
Tyco International Limited 79,243 2,099,940
-------------
INSURANCE -- 13.5%
American International
Group, Inc. 47,150 3,125,102
Aon Corp. 20,300 485,982
Chubb Corp. 3,000 204,300
Loews Corp. 18,700 924,715
Markel Corp.* 200 50,702
Principal Financial
Group, Inc. 6,700 221,569
Progressive Corp. 20,700 1,730,313
Sun Life Financial, Inc.4,100 102,582
Transatlantic Holdings, Inc. 11,200 904,960
-------------
7,750,225
-------------
LODGING -- 0.8%
Marriott International,
Inc. Cl. A 9,900 457,380
-------------
PHARMACEUTICALS -- 3.2%
Eli Lilly & Co. 11,800 829,894
Merck & Co., Inc. 4,300 198,660
Novartis AG 6,300 286,201
Pfizer, Inc. 15,040 531,363
-------------
1,846,118
-------------
PREPACKAGED SOFTWARE -- 0.9%
Microsoft Corp. 18,200 $ 501,228
-------------
RETAIL -- 3.4%
AutoZone, Inc.* 3,100 264,151
Costco Wholesale Corp.*46,200 1,717,716
-------------
1,981,867
-------------
TOBACCO -- 5.7%
Altria Group, Inc. 60,100 3,270,642
-------------
TRANSPORTATION -- 0.9%
United Parcel Service,
Inc. Cl. B 7,200 536,760
-------------
TOTAL EQUITIES
(COST $44,668,066) 52,000,101
=============
<Caption>
PRINCIPAL
AMOUNT
-------------
SHORT-TERM INVESTMENTS -- 13.3%
CASH EQUIVALENTS -- 4.9%**
Bank of Montreal
Eurodollar Time Deposit
1.060% 01/15/2004 $ 7,676 7,676
Bank of Montreal
Eurodollar Time Deposit
1.060% 02/17/2004 40,561 40,561
Bank of Nova Scotia
Eurodollar Time Deposit
1.080% 03/03/2004 121,682 121,682
Bank of Scotland
Eurodollar Time Deposit
1.060% 04/02/2004 30,420 30,420
Bank of the West
Eurodollar Time Deposit
1.075% 01/14/2004 30,420 30,420
Barclays
Eurodollar Time Deposit
1.090% 03/05/2004 101,401 101,401
BNP Paribas
Eurodollar Time Deposit
0.970% 01/07/2004 40,561 40,561
Canadian Imperial
Bank of Commerce
Bank Note
0.990% 05/18/2004 202,803 202,803
Citigroup
Eurodollar Time Deposit
1.080% 01/05/2004 20,280 20,280
</Table>
The accompanying notes are an integral part of the financial statements.
10
<Page>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
Citigroup
Eurodollar Time Deposit
1.090% 03/04/2004 $ 81,121 $ 81,121
Citigroup
Eurodollar Time Deposit
1.100% 01/22/2004 20,280 20,280
Credit Agricole Indosuez
Eurodollar Time Deposit
1.080% 01/06/2004 208,887 208,887
Dreyfus Cash
Management Plus, Inc.
Money Market Fund 111,541 111,541
Fannie Mae
Discount Note
1.062% 01/02/2004 60,841 60,841
Fleet National
Bank Bank Note
1.000% 01/21/2004 101,401 101,401
Freddie Mac
Discount Note
1.062% 01/27/2004 80,954 80,954
General Electric
Capital Corp.
1.092% 01/05/2004 101,217 101,217
Goldman Sachs
Financial Square
Prime Obligations
Money Market Fund 40,561 40,561
Harris Trust &
Savings Bank
Eurodollar Time Deposit
1.050% 01/29/2004 22,308 22,308
Merrill Lynch Premier
Institutional
Money Market Fund 139,530 139,530
Merrimac
Money Market Fund 336,652 336,652
Morgan Stanley
Dean Witter & Co.
1.080% 01/29/2004 105,457 105,457
National Bank of
Commerce Bank Note
1.120% 05/19/2004 50,701 50,701
Royal Bank of Canada
Eurodollar Time Deposit
1.050% 02/27/2004 50,701 50,701
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/09/2004 40,561 40,561
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/15/2004 101,401 101,401
Royal Bank of Scotland
Eurodollar Time Deposit
1.090% 03/03/2004 50,701 50,701
Southtrust Bank
Eurodollar Time Deposit
1.090% 02/17/2004 60,841 60,841
Svenska Handlesbanken
Eurodollar Time Deposit
1.080% 02/04/2004 50,701 50,701
Svenska Handlesbanken
Eurodollar Time Deposit
1.085% 01/15/2004 50,701 50,701
Svenska Handlesbanken
Eurodollar Time Deposit
1.090% 02/24/2004 101,401 101,401
Toronto Dominion Bank
Eurodollar Time Deposit
1.100% 01/08/2004 20,280 20,280
Wells Fargo
Eurodollar Time Deposit
1.070% 01/20/2004 243,362 243,362
-------------
2,827,905
-------------
REPURCHASE AGREEMENT -- 8.4%
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/2003, 0.72%,
due 01/02/2004(a) 4,799,548 4,799,548
-------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 7,627,453
-------------
TOTAL INVESTMENTS -- 104.1%
(COST $52,295,519)*** 59,627,554
OTHER ASSETS/
(LIABILITIES) -- (4.1%) (2,352,833)
-------------
NET ASSETS -- 100.0% $ 57,274,721
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
ADR - American Depository Receipt.
* Non-income producing security.
** Represents investments of security lending collateral. (NOTE 2).
*** Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $4,799,740. Collateralized by U.S. Government Agency
obligation with a rate of 3.875%, maturity date of 05/25/2007, and an
aggregate market value, including accrued interest, of $5,039,526.
The accompanying notes are an integral part of the financial statements.
11
<Page>
MML LARGE CAP VALUE FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $44,668,066) (NOTE 2) $ 52,000,101
Short-term investments, at amortized cost (NOTE 2) 7,627,453
-----------------
Total Investments (including securities on loan with market values of $2,731,502) 59,627,554
Cash 506,906
Receivables from:
Investment adviser (NOTE 3) 1,950
Fund shares sold 25,441
Interest and dividends 98,819
Foreign taxes withheld 54
-----------------
Total assets 60,260,724
-----------------
LIABILITIES:
Payables for:
Investments purchased 89,882
Fund shares repurchased 1,776
Securities on loan (NOTE 2) 2,827,905
Directors' fees and expenses (NOTE 3) 4,017
Affiliates (NOTE 3):
Investment management fees 39,554
Accrued expense and other liabilities 22,869
-----------------
Total liabilities 2,986,003
-----------------
NET ASSETS $ 57,274,721
=================
NET ASSETS CONSIST OF:
Paid-in capital $ 55,271,053
Undistributed net investment income 18,208
Accumulated net realized loss on investments and foreign currency translations (5,346,575)
Net unrealized appreciation on investments 7,332,035
-----------------
$ 57,274,721
=================
SHARES OUTSTANDING: 6,125,903
=================
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 9.35
=================
</Table>
The accompanying notes are an integral part of the financial statements.
12
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends (net of withholding tax of $8,975) $ 714,288
Interest (including securities lending income of $3,399) 10,471
-----------------
Total investment income 724,759
-----------------
EXPENSES:
Investment management fees (NOTE 3) 341,417
Audit and legal fees 19,930
Trustee reporting 13,445
Custody fees 12,103
Directors' fees (NOTE 3) 2,759
Shareholder reporting fees 1,950
-----------------
Total expenses 391,604
Expenses waived (NOTE 3) (3,243)
Fees paid indirectly (NOTE 3) (2,499)
-----------------
Net expenses 385,862
-----------------
NET INVESTMENT INCOME 338,897
-----------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on:
Investment transactions (788,416)
Foreign currency transactions (7,588)
-----------------
Net realized loss (796,004)
-----------------
Net change in unrealized appreciation (depreciation) on investments 12,346,148
-----------------
NET REALIZED AND UNREALIZED GAIN 11,550,144
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,889,041
=================
</Table>
The accompanying notes are an integral part of the financial statements.
13
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 338,897 $ 240,633
Net realized loss on investment transactions and foreign
currency transactions (796,004) (3,126,455)
Net change in unrealized appreciation (depreciation) on investments 12,346,148 (4,230,305)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 11,889,041 (7,116,127)
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income (359,133) (241,225)
Tax return of capital - (2,964)
NET FUND SHARE TRANSACTIONS (NOTE 5) 11,826,285 5,107,623
----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 23,356,193 (2,252,693)
NET ASSETS:
Beginning of year 33,918,528 36,171,221
----------------- -----------------
End of year (including undistributed net investment income of
$18,208 and distributions in excess of net investment income of
$2,277, respectively) $ 57,274,721 $ 33,918,528
================= =================
</Table>
The accompanying notes are an integral part of the financial statements.
14
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12/31/03 12/31/02 12/31/01 12/31/00+
---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.26 $ 8.73 $ 9.86 $ 10.00
---------- ---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.06 0.05 0.03 0.05***
Net realized and unrealized gain (loss) on investments 2.09 (1.47) (1.13) (0.15)
---------- ---------- ---------- ----------
Total income (loss) from investment operations 2.15 (1.42) (1.10) (0.10)
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.06) (0.05) (0.03) (0.04)
Tax return of capital - (0.00)~ - -
---------- ---------- ---------- ----------
Total distributions (0.06) (0.05) (0.03) (0.04)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 9.35 $ 7.26 $ 8.73 $ 9.86
========== ========== ========== ==========
TOTAL RETURN(a) 29.60% (16.23)% (11.16)% (1.05)%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 57,275 $ 33,919 $ 36,171 $ 18,052
Ratio of expenses to average daily net assets:
Before expense waiver 0.92% 0.92% 0.87% 1.07%*
After expense waiver# 0.90%(b) 0.90%(b) 0.87% 0.91%*
Net investment income to average daily net assets 0.79% 0.61% 0.48% 0.78%*
Portfolio turnover rate 7% 32% 19% 14%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
~ TAX RETURN OF CAPITAL IS LESS THAN $0.01 PER SHARE.
+ FOR THE PERIOD FROM MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2000.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE CERTAIN
FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2000 THROUGH DECEMBER
31, 2000 AND FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
(b) THE FUND HAS ENTERED INTO AGREEMENTS WITH CERTAIN BROKERS TO REBATE A
PORTION OF BROKERAGE COMMISSIONS. THE REBATED COMMISSIONS ARE USED TO
REDUCE OPERATING EXPENSES OF THE FUND.
The accompanying notes are an integral part of the financial statements.
15
<Page>
MML EQUITY INDEX FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML EQUITY growth of capital through performance that closely
INDEX FUND? tracks that of the S&P 500 Index by investing in a
portfolio of equity securities that mirrors the
sector and stock weightings of the Index.
HOW DID THE FUND PERFORM For the 12 months ending December 31, 2003, the
DURING THE 2003? Fund's Class I shares returned 28.08%, nearly in
line with the 28.67% return of the S&P 500 Index,
a market capitalization-weighted, unmanaged index
of 500 common stocks.
WHAT WAS THE INVESTMENT The S&P 500 Index had a strong fourth quarter
BACKDROP DURING THE PERIOD? finish, advancing 12.2%. Value stocks outpaced
growth stocks both during the fourth quarter and
for the year. For the 12 months ending December
31, value outperformed growth by nearly 600 basis
points. As had been the case throughout the year,
returns increased as capitalization decreased.
Throughout 2003, the economic landscape showed
signs of improvement, as evidenced in the
continual upward revisions to the all-important
Gross Domestic Product (GDP) figures. Most
recently, GDP growth has been estimated at an
annualized rate of 8.2%. During the second half of
the year, investment by corporate America began
picking up in earnest. While business spending was
well in the single-digit category during the first
half of the year, the third and fourth quarters'
spending levels increased sharply to mid-teen
levels, with significant increases experienced in
technology spending. The year concluded with
robust corporate earnings, as evidenced by the
near-record estimate of the S&P 500's 2004
operating earnings at $62 per share. The equity
markets continued to enjoy the Federal Reserve's
stimulative stance on monetary policy throughout
the year.
WHAT FACTORS CONTRIBUTED TO With the exception of health care,
THE FUND'S PERFORMANCE? telecommunication services and utilities, in the
third quarter all sectors generated positive
performance; technology and materials led the
pack. Health care was the weakest-performing of
the sectors. Turning to the fourth quarter, all
sectors generated results of at least 8%, with the
materials sector enjoying the largest increase.
The two sectors contributing the most to the
market's fourth quarter return were financials and
information technology, with each advancing nearly
13%. Together, these two sectors account for just
under 40% of the Index's weighting. Financials and
technology also drove performance for the year,
with financials advancing by 31% and technology,
47%. The only sector to generate single-digit
returns for the year was telecommunication
services, with its 7.1% return.
WHAT IS YOUR OUTLOOK? Improvement in business performance this cycle,
especially corporate profitability, should support
further, if more modest, gains in 2004. A stronger
cyclical recovery and a potential higher secular
growth rate are not fully discounted in equity
markets. The state of the business cycle, the end
of the bear market, and the economy's remarkable
resilience and productivity argue that 2004 will
be a favorable year for equity investors.
Unquestionably, risk exists - particularly,
exogenous threats like terrorism - but markets
adjust to these risks and take them into account.
In such instances, they do not ordinarily cause
volatility; only when unforeseen events happen
does the market respond, in either a positive or
negative direction.
16
<Page>
MML EQUITY INDEX FUND
LARGEST STOCK HOLDINGS (12/31/03)
General Electric Co.
Microsoft Corp.
Exxon Mobil Corp.
Pfizer, Inc.
Citigroup, Inc.
Wal-Mart Stores, Inc.
Intel Corp.
American International Group, Inc.
Cisco Systems, Inc.
International Business Machines Corp.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Equity Index Fund Class I and the S&P 500
Index.
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
FIVE YEAR SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL AVERAGE ANNUAL
1/1/03 - 12/31/03 1/1/99 - 12/31/03 5/1/97 - 12/31/03
MML Equity Index
Fund Class I 28.08% -1.07% 6.07%
- -----------------------------------------------------------------------------
S&P 500 Index 28.67% -0.57% 6.60%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
MML Equity Index Fund
<Table>
5/1/97 $ 10,000 $ 10,000
12/97 $ 12,193 $ 12,255
12/98 $ 15,634 $ 15,757
12/99 $ 18,811 $ 19,073
12/00 $ 17,016 $ 17,338
12/01 $ 14,921 $ 15,279
12/02 $ 11,569 $ 11,903
12/03 $ 14,818 $ 15,316
</Table>
Hypothetical Investments in MML Equity Index Fund
Class II, Class III and the S&P 500 Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/1/00 - 12/31/03
MML Equity Index
Fund Class II 28.31% -5.89%
MML Equity Index
Fund Class III 28.38% -5.84%
- -----------------------------------------------------------------------------
S&P 500 Index 28.67% -5.60%
</Table>
[CHART]
<Table>
5/1/2000 $ 10,000 $ 10,000 $ 10,000
12/00 $ 9,137 $ 9,150 $ 9,162
12/01 $ 8,024 $ 8,024 $ 8,074
12/02 $ 6,236 $ 6,244 $ 6,290
12/03 $ 8,001 $ 8,016 $ 8,094
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE S&P 500 INDEX IS UNMANAGED AND DOES NOT INCUR EXPENSES,
AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN REFLECTS
CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY PRODUCT
CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED IF THEY
REFLECTED THESE CHARGES.
17
<Page>
MML EQUITY INDEX FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
EQUITIES -- 98.9%
ADVERTISING -- 0.2%
Interpublic Group of
Companies, Inc.* 14,807 $ 230,989
Monster Worldwide, Inc.* 4,676 102,685
Omnicom Group, Inc. 7,306 638,033
-------------
971,707
-------------
AEROSPACE & DEFENSE -- 1.8%
Boeing Co. 32,769 1,380,886
General Dynamics Corp. 7,607 687,597
Goodrich Corp. 4,539 134,763
Honeywell
International, Inc. 33,090 1,106,199
Lockheed Martin Corp. 17,640 906,696
Northrop Grumman Corp. 7,084 677,230
Raytheon Co. 15,788 474,272
Rockwell Collins, Inc. 6,568 197,237
United Technologies Corp. 18,111 1,716,379
-------------
7,281,259
-------------
AIR TRANSPORTATION -- 0.1%
Delta Air Lines, Inc. 4,599 54,314
Southwest Airlines Co. 31,040 500,986
-------------
555,300
-------------
APPAREL, TEXTILES & SHOES -- 0.6%
The Gap, Inc. 34,945 811,073
Jones Apparel Group, Inc. 4,896 172,486
Limited Brands 19,330 348,520
Liz Claiborne, Inc. 4,074 144,464
Nike, Inc. Cl. B 10,224 699,935
Nordstrom, Inc. 5,035 172,700
Reebok
International Limited 2,356 92,638
VF Corp. 4,051 175,165
-------------
2,616,981
-------------
AUTOMOTIVE & PARTS -- 1.1%
AutoNation, Inc.* 10,800 198,396
Cooper Tire & Rubber Co. 2,346 50,157
Dana Corp. 5,703 104,650
Delphi Corp. 20,283 207,089
Ford Motor Co. 71,667 1,146,672
General Motors Corp. 21,630 1,155,042
Genuine Parts Co. 6,329 210,123
The Goodyear Tire &
Rubber Co.* 6,265 49,243
Harley-Davidson, Inc. 11,720 557,052
Navistar International Corp.* 2,674 128,058
Paccar, Inc. 4,589 390,616
Visteon Corp. 4,812 50,093
-------------
4,247,191
-------------
BANKING, SAVINGS & LOANS -- 11.8%
AmSouth Bancorp. 12,959 $ 317,495
Bank of America Corp. 57,856 4,653,358
Bank of
New York Co., Inc. 29,445 975,218
Bank One Corp. 44,532 2,030,214
BB&T Corp. 21,083 814,647
Capital One
Financial Corp. 8,700 533,223
Charter One
Financial, Inc. 8,176 282,481
Citigroup, Inc. 200,344 9,724,698
Comerica, Inc. 6,769 379,470
Fannie Mae 38,276 2,872,997
Fifth Third Bancorp 22,463 1,327,563
First Tennessee
National Corp. 5,400 238,140
FleetBoston
Financial Corp. 41,402 1,807,197
Freddie Mac 27,386 1,597,152
Golden West
Financial Corp. 5,955 614,496
J.P. Morgan Chase & Co. 78,473 2,882,313
KeyCorp 16,310 478,209
Marshall and Ilsley Corp. 8,800 336,600
Mellon Financial Corp. 16,894 542,466
National City Corp. 24,398 828,068
North Fork
Bancorporation, Inc. 5,900 238,773
Northern Trust Corp. 8,488 394,013
Providian Financial Corp.* 11,202 130,391
Regions Financial Corp. 8,552 318,134
SLM Corp. 17,742 668,519
SouthTrust Corp. 14,110 461,820
State Street Corp. 13,022 678,186
SunTrust Banks, Inc. 11,090 792,935
Synovus Financial Corp. 11,763 340,186
U.S. Bancorp 76,132 2,267,211
Union Planters Corp. 7,212 227,106
Wachovia Corp. 52,374 2,440,105
Washington Mutual, Inc. 35,076 1,407,249
Wells Fargo & Co. 65,929 3,882,559
Zions Bancorp 3,893 238,758
-------------
47,721,950
-------------
BEVERAGES -- 2.6%
Anheuser-Busch
Companies, Inc. 32,348 1,704,093
Brown-Forman Corp. Cl. B 2,290 214,000
The Coca-Cola Co. 95,876 4,865,707
Coca-Cola Enterprises, Inc. 18,074 395,278
Coors (Adolph) Co. Cl. B 1,389 $ 77,923
The Pepsi Bottling
Group, Inc. 10,338 249,973
PepsiCo, Inc. 67,908 3,165,871
-------------
10,672,845
-------------
BROADCASTING, PUBLISHING & PRINTING -- 3.4%
American Greetings
Corp. Cl. A* 2,423 52,991
Clear Channel
Communications, Inc. 23,749 1,112,166
Comcast Corp. Cl. A* 88,318 2,903,013
Dow Jones & Co., Inc. 3,026 150,846
Gannett Co., Inc. 10,735 957,133
Knight Ridder, Inc. 3,055 236,365
The McGraw-Hill
Companies, Inc. 7,630 533,490
Meredith Corp. 1,844 90,006
New York Times Co. Cl. A 5,565 265,951
Time Warner, Inc.* 176,908 3,182,575
Tribune Co. 11,909 614,504
Univision Communications,
Inc. Cl. A* 12,500 496,125
Viacom, Inc. Cl. B 67,768 3,007,544
-------------
13,602,709
-------------
BUILDING MATERIALS & CONSTRUCTION -- 0.2%
Louisiana-Pacific Corp.* 4,256 76,097
Masco Corp. 19,167 525,367
Vulcan Materials Co. 3,710 176,485
-------------
777,949
-------------
CHEMICALS -- 1.5%
Air Products &
Chemicals, Inc. 8,758 462,685
Ashland, Inc. 2,603 114,688
Dow Chemical Co. 35,868 1,491,033
Du Pont (E.I.) de
Nemours & Co. 38,904 1,785,305
Eastman Chemical Co. 3,500 138,355
Engelhard Corp. 4,893 146,545
Great Lakes
Chemical Corp. 1,955 53,156
Hercules, Inc.* 4,406 53,753
International Flavors &
Fragrances, Inc. 3,446 120,334
Monsanto Co. 10,685 307,514
PPG Industries, Inc. 6,689 428,230
Praxair, Inc. 12,564 479,945
Rohm & Haas Co. 8,140 347,659
-------------
5,929,202
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
18
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
COMMERCIAL SERVICES -- 1.8%
Allied Waste
Industries, Inc.* 12,460 $ 172,945
Apollo Group, Inc. Cl. A* 6,800 462,400
Block (H&R), Inc. 7,074 391,687
Cendant Corp.* 39,442 878,373
Cintas Corp. 6,890 345,396
Concord EFS, Inc.* 19,384 287,659
Convergys Corp.* 6,816 119,007
Donnelley (R.R.) &
Sons Co. 4,122 124,278
eBay, Inc.* 25,300 1,634,127
Ecolab, Inc. 9,516 260,453
Equifax, Inc. 5,559 136,195
Fluor Corp. 2,927 116,026
Moody's Corp. 5,646 341,865
Paychex, Inc. 15,097 561,608
PerkinElmer, Inc. 5,008 85,487
Quest Diagnostics, Inc.* 4,064 297,119
Robert Half
International, Inc.* 6,680 155,911
Ryder System, Inc. 2,482 84,760
Waste Management, Inc. 22,853 676,449
-------------
7,131,745
-------------
COMMUNICATIONS -- 1.9%
ADC
Telecommunications, Inc.* 27,448 81,521
Andrew Corp.* 5,761 66,309
Avaya, Inc.* 15,976 206,729
Ciena Corp.* 19,241 127,760
Citizens
Communications Co.* 10,801 134,148
Lucent Technologies, Inc.* 159,879 454,056
Network Appliance, Inc.* 13,420 275,513
Nextel Communications,
Inc. Cl. A* 42,530 1,193,392
Qualcomm, Inc. 30,530 1,646,483
SBC Communications, Inc. 130,646 3,405,941
Scientific-Atlanta, Inc. 5,810 158,613
Tellabs, Inc.* 15,712 132,452
-------------
7,882,917
-------------
COMMUNICATIONS EQUIPMENT -- 0.3%
Motorola, Inc. 91,310 1,284,732
-------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 0.4%
Autodesk, Inc. 4,890 120,196
Computer Sciences Corp.* 7,187 317,881
Parametric
Technology Corp.* 9,034 35,594
Sun Microsystems, Inc.* 124,108 557,245
Teradyne, Inc.* 7,560 192,402
Unisys Corp.* 12,315 182,878
-------------
1,406,196
-------------
COMPUTER PROGRAMMING SERVICES -- 0.0%
Mercury Interactive Corp.* 3,470 $ 168,781
-------------
COMPUTERS & INFORMATION -- 3.2%
Apple Computer, Inc.* 14,426 308,284
Cisco Systems, Inc.* 268,973 6,533,354
Comverse
Technology, Inc.* 7,222 127,035
Dell, Inc.* 99,247 3,370,428
EMC Corp.* 93,632 1,209,725
Gateway, Inc.* 12,490 57,454
International
Game Technology 13,216 471,811
Jabil Circuit, Inc.* 7,678 217,287
Lexmark
International, Inc.* 4,964 390,369
Solectron Corp.* 32,081 189,599
Symbol Technologies, Inc. 8,835 149,223
-------------
13,024,569
-------------
COMPUTERS & OFFICE EQUIPMENT -- 2.5%
Electronic Data
Systems Corp. 18,471 453,278
Hewlett-Packard Co. 119,815 2,752,151
International Business
Machines Corp. 67,314 6,238,662
Pitney Bowes, Inc. 9,002 365,661
Xerox Corp.* 31,114 429,373
-------------
10,239,125
-------------
CONTAINERS -- 0.2%
Ball Corp. 2,210 131,650
Bemis Co., Inc. 2,083 104,150
Pactiv Corp.* 5,959 142,420
Sealed Air Corp.* 3,191 172,761
Temple-Inland, Inc. 2,038 127,721
-------------
678,702
-------------
COSMETICS & PERSONAL CARE -- 2.4%
Alberto-Culver Co. Cl. B 2,138 134,865
Avon Products, Inc. 9,178 619,423
Colgate-Palmolive Co. 21,477 1,074,924
The Gillette Co. 39,983 1,468,576
Kimberly-Clark Corp. 20,103 1,187,886
The Procter & Gamble Co. 50,754 5,069,310
-------------
9,554,984
-------------
DATA PROCESSING & PREPARATION -- 0.7%
Automatic Data
Processing, Inc. 23,104 915,149
Deluxe Corp. 2,314 95,638
First Data Corp. 28,860 1,185,857
Fiserv, Inc.* 7,821 309,008
IMS Health, Inc. 9,324 231,795
NCR Corp.* 3,750 145,500
-------------
2,882,947
-------------
ELECTRIC UTILITIES -- 2.4%
AES Corp.* 21,449 $ 202,479
Allegheny Energy, Inc.* 5,120 65,331
Ameren Corp. 5,781 265,926
American Electric
Power Co. 15,057 459,389
Calpine Corp.* 14,571 70,087
CenterPoint Energy, Inc. 11,663 113,014
Cinergy Corp. 6,763 262,472
CMS Energy Corp.* 5,538 47,184
Consolidated Edison, Inc. 9,150 393,542
Constellation Energy
Group, Inc. 5,925 232,023
Dominion Resources, Inc. 12,178 777,322
DTE Energy Co. 6,037 237,858
Duke Energy Corp. 36,535 747,141
Edison International* 12,430 272,590
Entergy Corp. 8,860 506,172
Exelon Corp. 12,968 860,556
FirstEnergy Corp. 13,357 470,166
FPL Group, Inc. 7,086 463,566
NiSource, Inc. 11,046 242,349
PG&E Corp.* 16,321 453,234
Pinnacle West
Capital Corp. 3,200 128,064
PPL Corp. 6,889 301,394
Progress Energy, Inc. 9,672 437,755
Public Service Enterprise
Group, Inc. 8,698 380,972
Southern Co. 29,487 891,982
Teco Energy, Inc. 7,361 106,072
TXU Corp. 12,877 305,442
-------------
9,694,082
-------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 7.5%
Advanced Micro
Devices, Inc.* 14,060 209,494
Altera Corp.* 15,320 347,764
American Power
Conversion Corp. 7,630 186,554
Analog Devices, Inc. 14,070 642,296
Applied Micro
Circuits Corp.* 10,300 61,594
Broadcom Corp. Cl. A* 11,753 400,660
Emerson Electric Co. 16,657 1,078,541
General Electric Co. 391,193 12,119,159
Intel Corp. 254,502 8,194,964
JDS Uniphase Corp.* 55,188 201,436
Johnson Controls, Inc. 3,625 420,935
Kla-Tencor Corp.* 7,406 434,510
Linear Technology Corp. 12,130 510,309
LSI Logic Corp.* 15,328 135,959
Maxim Integrated
Products, Inc. 12,860 640,428
</Table>
The accompanying notes are an integral part of the financial statements.
19
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
Micron Technology, Inc.* 23,717 $ 319,468
Molex, Inc. 7,390 257,837
National
Semiconductor Corp.* 7,448 293,526
Novellus Systems, Inc.* 5,950 250,198
Nvidia Corp.* 5,800 134,850
PMC-Sierra, Inc.* 6,189 124,708
Power-One, Inc.* 3,520 38,122
Qlogic Corp.* 3,800 196,080
Rockwell Automation, Inc. 7,168 255,181
Sanmina-SCI Corp.* 20,652 260,422
Texas Instruments, Inc. 66,626 1,957,472
Thomas & Betts Corp. 2,551 58,392
Xilinx, Inc.* 13,111 507,920
-------------
30,238,779
-------------
ENERGY -- 6.0%
Amerada Hess Corp. 3,253 172,962
Anadarko Petroleum Corp. 9,822 501,020
Apache Corp. 6,150 498,765
BJ Services Co.* 6,100 218,990
Burlington Resources, Inc. 7,900 437,502
ChevronTexaco Corp. 41,672 3,600,044
ConocoPhillips 26,264 1,722,131
Devon Energy Corp. 8,885 508,755
Dynegy, Inc. Cl. A* 15,327 65,600
El Paso Corp. 24,446 200,213
EOG Resources, Inc. 4,700 216,999
Exxon Mobil Corp. 257,534 10,558,894
Halliburton Co. 16,765 435,890
Kerr-McGee Corp. 4,146 192,748
KeySpan Corp. 6,080 223,744
Kinder Morgan, Inc. 4,690 277,179
Marathon Oil Corp. 12,005 397,245
Nabors Industries Limited* 5,615 233,023
Nicor, Inc. 1,689 57,494
Noble Corp.* 5,140 183,909
Occidental
Petroleum Corp. 15,404 650,665
Peoples Energy Corp. 1,357 57,048
Rowan Companies, Inc.* 4,221 97,801
Schlumberger Limited 22,939 1,255,222
Sempra Energy 8,817 265,039
Sunoco, Inc. 3,093 158,207
Transocean, Inc.* 12,427 298,372
Unocal Corp. 9,957 366,716
The Williams
Companies, Inc. 19,518 191,667
Xcel Energy, Inc. 16,072 272,903
-------------
24,316,747
-------------
ENTERTAINMENT & LEISURE -- 0.5%
Brunswick Corp. 3,239 $ 103,097
Harrah's
Entertainment, Inc. 4,623 230,087
The Walt Disney Co. 80,622 1,880,911
-------------
2,214,095
-------------
FINANCIAL SERVICES -- 3.7%
American Express Co. 50,372 2,429,442
Apartment Investment &
Management Co. Cl. A 4,100 141,450
Bear Stearns
Companies, Inc. 4,018 321,239
Countrywide
Financial Corp. 6,985 529,812
Federated Investors,
Inc. Cl. B 4,200 123,312
Franklin Resources, Inc. 9,828 511,646
The Goldman Sachs
Group, Inc. 18,300 1,806,759
Huntington
Bancshares, Inc. 8,434 189,765
Janus Capital Group, Inc. 9,250 151,793
Lehman Brothers
Holdings, Inc. 10,672 824,092
MBNA Corp. 49,821 1,238,052
Merrill Lynch & Co., Inc. 35,968 2,109,523
Morgan Stanley 42,791 2,476,315
PNC Financial Services
Group, Inc. 10,949 599,239
Price (T. Rowe)
Group, Inc. 4,800 227,568
ProLogis Trust 6,800 218,212
The Schwab
(Charles) Corp. 52,161 617,586
Simon Property
Group, Inc. 7,300 338,282
-------------
14,854,087
-------------
FOODS -- 1.8%
Archer-
Daniels-Midland Co. 24,861 378,384
Campbell Soup Co. 15,802 423,494
ConAgra Foods, Inc. 20,972 553,451
General Mills, Inc. 14,408 652,682
Heinz (H. J.) Co. 13,522 492,606
Hershey Foods Corp. 4,972 382,794
Kellogg Co. 15,664 596,485
The Kroger Co.* 29,318 542,676
McCormick & Co., Inc. 5,200 156,520
Safeway, Inc.* 17,160 375,976
Sara Lee Corp. 30,365 659,224
Starbucks Corp.* 15,230 $ 503,504
SuperValu, Inc. 4,921 140,691
Sysco Corp. 25,730 957,928
Wrigley (Wm.) Jr. Co. 8,734 490,938
-------------
7,307,353
-------------
FOREST PRODUCTS & PAPER -- 0.5%
Boise Cascade Corp. 2,242 73,672
Georgia-Pacific Corp. 9,670 296,579
International Paper Co. 18,789 809,994
MeadWestvaco Corp. 7,701 229,105
Plum Creek Timber
Co., Inc. 7,100 216,195
Weyerhaeuser Co. 8,490 543,360
-------------
2,168,905
-------------
HEALTHCARE -- 0.9%
Express Scripts, Inc.* 3,000 199,290
HCA, Inc. 20,076 862,465
Health Management
Associates, Inc. Cl. A 9,800 235,200
Humana, Inc.* 6,203 141,739
Manor Care, Inc. 3,532 122,101
Tenet Healthcare Corp.* 18,059 289,847
UnitedHealth Group, Inc. 22,840 1,328,831
Wellpoint Health
Networks, Inc.* 5,640 547,024
-------------
3,726,497
-------------
HOME CONSTRUCTION,
FURNISHINGS & APPLIANCES -- 0.3%
Centex Corp. 2,573 276,983
KB Home 1,771 128,433
Leggett & Platt, Inc. 7,450 161,144
Maytag Corp. 3,186 88,730
Pulte Homes, Inc. 2,261 211,675
Whirlpool Corp. 2,669 193,903
-------------
1,060,868
-------------
HOUSEHOLD PRODUCTS -- 0.5%
Black & Decker Corp. 2,950 145,494
The Clorox Co. 8,070 391,879
Corning, Inc.* 52,791 550,610
Fortune Brands, Inc. 5,780 413,212
Newell Rubbermaid, Inc. 10,735 244,436
Sherwin-Williams Co. 5,629 195,551
Snap-On, Inc. 2,253 72,637
The Stanley Works 3,305 125,160
Tupperware Corp. 2,250 39,015
-------------
2,177,994
-------------
INDUSTRIAL - DISTRIBUTION -- 0.0%
Grainger (W.W.), Inc. 3,532 167,381
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
20
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
INDUSTRIAL - DIVERSIFIED -- 1.8%
3M Co. 30,272 $ 2,574,028
Cooper Industries
Limited Cl. A 3,614 209,359
Danaher Corp. 6,055 555,546
Eaton Corp. 2,897 312,818
Illinois Tool Works, Inc. 11,943 1,002,137
ITT Industries, Inc. 3,537 262,481
Textron, Inc. 5,032 287,126
Tyco International Limited 77,074 2,042,461
-------------
7,245,956
-------------
INFORMATION RETRIEVAL SERVICES -- 0.3%
Yahoo!, Inc.* 25,158 1,136,387
-------------
INSURANCE -- 5.0%
ACE Limited 10,000 414,200
Aetna, Inc. 6,049 408,791
AFLAC, Inc. 20,020 724,324
Allstate Corp. 27,704 1,191,826
Ambac Financial
Group, Inc. 4,275 296,642
American International
Group, Inc. 101,470 6,725,432
Anthem, Inc.* 5,363 402,225
Aon Corp. 12,046 288,381
Chubb Corp. 7,273 495,291
Cigna Corp. 5,440 312,800
Cincinnati Financial Corp. 5,889 246,631
The Hartford Financial
Services Group, Inc. 11,358 670,463
Jefferson-Pilot Corp. 5,520 279,588
John Hancock Financial
Services, Inc. 11,202 420,075
Lincoln National Corp. 6,841 276,171
Loews Corp. 6,658 329,238
Marsh & McLennan
Companies, Inc. 21,042 1,007,701
MBIA, Inc. 5,675 336,130
Metlife, Inc. 30,232 1,017,911
MGIC Investment Corp. 4,089 232,828
Principal Financial
Group, Inc. 12,600 416,682
Progressive Corp. 8,283 692,376
Prudential Financial, Inc. 21,700 906,409
Safeco Corp. 5,759 224,198
The St. Paul Companies, Inc. 9,409 373,067
Torchmark Corp. 4,326 197,006
Travelers Property
Casualty Corp. Cl. B 38,888 659,929
UnumProvident Corp. 11,570 182,459
XL Capital Limited Cl. A 5,527 428,619
-------------
20,157,393
-------------
LODGING -- 0.2%
Hilton Hotels Corp. 14,591 $ 249,944
Marriott International,
Inc. Cl. A 8,964 414,137
Starwood Hotels &
Resorts Worldwide, Inc. 7,740 278,408
-------------
942,489
-------------
MACHINERY & COMPONENTS -- 0.8%
Baker Hughes, Inc. 13,198 424,448
Caterpillar, Inc. 13,252 1,100,181
Cummins, Inc. 1,739 85,107
Deere & Co. 9,243 601,257
Dover Corp. 8,235 327,341
Ingersoll-Rand Co. Cl. A 6,783 460,430
Pall Corp. 4,792 128,569
Parker-Hannifin Corp. 4,814 286,433
-------------
3,413,766
-------------
MANUFACTURING -- 0.5%
American Standard
Companies, Inc.* 2,800 281,960
Applied Materials, Inc.* 64,006 1,436,935
Avery Dennison Corp. 4,028 225,649
Millipore Corp.* 1,815 78,136
-------------
2,022,680
-------------
MEDICAL SUPPLIES -- 2.3%
Agilent Technologies, Inc.* 18,183 531,671
Allergan, Inc. 5,007 384,588
Applied Biosystems
Group-Applera Corp. 7,738 160,254
Bard (C.R.), Inc. 2,060 167,375
Bausch & Lomb, Inc. 2,392 124,145
Baxter International, Inc. 23,092 704,768
Becton, Dickinson & Co. 9,848 405,147
Biomet, Inc. 10,455 380,667
Boston Scientific Corp.* 32,322 1,188,157
Guidant Corp. 11,988 721,678
Medtronic, Inc. 47,081 2,288,607
St. Jude Medical, Inc.* 6,722 412,395
Stryker Corp. 7,750 658,828
Tektronix, Inc. 3,420 108,072
Thermo Electron Corp.* 6,654 167,681
Waters Corp.* 5,300 175,748
Zimmer Holdings, Inc.* 9,422 663,309
-------------
9,243,090
-------------
METALS & MINING -- 0.8%
Alcoa, Inc. 32,788 1,245,944
Allegheny
Technologies, Inc. 3,144 41,564
Crane Co. 2,278 70,026
Freeport-McMoRan
Copper & Gold, Inc. Cl. B 6,333 266,809
Newmont Mining Corp. 16,509 $ 802,502
Nucor Corp. 3,006 168,336
Phelps Dodge Corp.* 3,485 265,174
United States Steel Corp. 3,954 138,469
Worthington
Industries, Inc. 3,207 57,822
-------------
3,056,646
-------------
PHARMACEUTICALS -- 9.8%
Abbott Laboratories 61,398 2,861,147
AmerisourceBergen Corp. 4,276 240,097
Amgen, Inc.* 50,606 3,127,451
Biogen Idec, Inc.* 12,937 475,823
Bristol-Myers Squibb Co. 76,342 2,183,381
Cardinal Health, Inc. 16,869 1,031,708
Chiron Corp.* 7,360 419,446
Eli Lilly & Co. 44,080 3,100,146
Forest Laboratories, Inc.* 13,980 863,964
Genzyme Corp.* 8,400 414,456
Johnson & Johnson 115,312 5,957,018
King
Pharmaceuticals, Inc.* 8,867 135,310
McKesson Corp. 11,387 366,206
Medco Health
Solutions, Inc.* 10,420 354,176
Medimmune, Inc.* 9,764 248,006
Merck & Co., Inc. 86,643 4,002,907
Pfizer, Inc. 297,327 10,504,563
Schering-Plough Corp. 58,288 1,013,628
Sigma-Aldrich Corp. 3,084 176,343
Watson
Pharmaceutical, Inc.* 4,170 191,820
Wyeth 52,356 2,222,512
-------------
39,890,108
-------------
PHOTOGRAPHY EQUIPMENT/SUPPLIES -- 0.1%
Eastman Kodak Co. 11,660 299,312
-------------
PREPACKAGED SOFTWARE -- 4.6%
Adobe Systems, Inc. 8,906 350,006
BMC Software, Inc.* 8,765 163,467
Citrix Systems, Inc.* 6,492 137,695
Computer Associates
International, Inc. 22,323 610,311
Compuware Corp.* 13,878 83,823
Electronic Arts, Inc.* 11,200 535,136
Intuit, Inc.* 8,010 423,809
Microsoft Corp. 422,128 11,625,405
Novell, Inc.* 14,376 151,236
Oracle Corp.* 205,261 2,709,445
Peoplesoft, Inc.* 14,714 335,479
Siebel Systems, Inc.* 19,718 273,489
SunGard Data
Systems, Inc.* 11,000 304,810
Symantec Corp.* 11,600 401,940
Veritas Software Corp.* 16,946 629,713
-------------
18,735,764
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
21
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
REAL ESTATE -- 0.2%
Equity Office
Properties Trust 16,060 $ 460,119
Equity Residential 10,000 295,100
-------------
755,219
-------------
RESTAURANTS -- 0.5%
Darden Restaurants, Inc. 6,492 136,592
McDonald's Corp. 49,177 1,221,065
Wendy's International, Inc. 4,375 171,675
Yum! Brands, Inc.* 11,298 388,651
-------------
1,917,983
-------------
RETAIL -- 5.9%
AutoZone, Inc.* 3,554 302,836
Bed Bath & Beyond, Inc.* 11,850 513,698
Best Buy Co., Inc. 12,430 649,343
Big Lots, Inc.* 4,274 60,734
Circuit City Stores, Inc. 7,800 79,014
Costco Wholesale Corp.* 18,342 681,956
CVS Corp. 15,303 552,744
Dillards, Inc. Cl. A 3,101 51,042
Dollar General Corp. 12,914 271,065
Family Dollar Stores, Inc. 6,651 238,638
Federated Department
Stores, Inc. 7,163 337,592
The Home Depot, Inc. 89,537 3,177,668
J.C. Penney Company, Inc. 10,809 284,061
Kohl's Corp.* 13,123 589,748
Lowe's Companies, Inc. 30,082 1,666,242
The May Department
Stores Co. 11,832 343,956
Office Depot, Inc.* 12,665 211,632
RadioShack Corp. 6,905 211,845
Sears, Roebuck and Co. 9,829 447,121
Staples, Inc.* 19,673 537,073
Target Corp. 36,068 1,385,011
Tiffany & Co. 5,592 252,758
TJX Companies, Inc. 20,376 449,291
Toys R Us, Inc.* 7,862 99,376
Walgreen Co. 40,004 1,455,346
Wal-Mart Stores, Inc. 168,612 8,944,867
-------------
23,794,657
-------------
RETAIL - GROCERY -- 0.1%
Albertson's, Inc. 14,147 320,430
Winn-Dixie Stores, Inc. 5,423 53,959
-------------
374,389
-------------
TELEPHONE UTILITIES -- 2.2%
Alltel Corp. 12,367 576,055
AT&T Corp. 30,484 618,825
AT&T Wireless
Services, Inc.* 107,431 858,374
BellSouth Corp. 71,820 2,032,506
CenturyTel, Inc. 5,531 $ 180,421
Qwest Communications
International, Inc.* 62,058 268,091
Sprint Corp. (FON Group) 34,605 568,214
Sprint Corp. (PCS Group)* 40,661 228,515
Verizon
Communications, Inc. 106,829 3,747,561
-------------
9,078,562
-------------
TOBACCO -- 1.2%
Altria Group, Inc. 78,929 4,295,316
Reynolds (R.J.)
Tobacco Holdings, Inc. 3,300 191,895
UST, Inc. 6,422 229,201
-------------
4,716,412
-------------
TOYS, GAMES -- 0.1%
Hasbro, Inc. 6,691 142,384
Mattel, Inc. 17,189 331,232
-------------
473,616
-------------
TRANSPORTATION -- 1.7%
Burlington Northern
Santa Fe Corp. 15,186 491,267
Carnival Corp. 24,385 968,816
CSX Corp. 7,965 286,262
FedEx Corp. 11,503 776,453
Norfolk Southern Corp. 14,389 340,300
Union Pacific Corp. 9,817 682,085
United Parcel Service,
Inc. Cl. B 44,100 3,287,655
-------------
6,832,838
-------------
TRAVEL -- 0.0%
Sabre Holdings Corp. 5,431 117,255
-------------
TOTAL EQUITIES
(COST $409,021,965) 400,763,101
-------------
<Caption>
PRINCIPAL
AMOUNT
-------------
SHORT-TERM INVESTMENTS -- 7.1%
CASH EQUIVALENTS -- 6.1%**
Bank of Montreal
Eurodollar Time Deposit
1.060% 01/15/2004 $ 67,251 67,251
Bank of Montreal
Eurodollar Time Deposit
1.060% 02/17/2004 355,336 355,336
Bank of Nova Scotia
Eurodollar Time Deposit
1.080% 03/03/2004 1,066,010 1,066,010
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
Bank of Scotland
Eurodollar Time Deposit
1.060% 04/02/2004 $ 266,502 $ 266,502
Bank of the West
Eurodollar Time Deposit
1.075% 01/14/2004 266,502 266,502
Barclays
Eurodollar Time Deposit
1.090% 03/05/2004 888,341 888,341
BNP Paribas
Eurodollar Time Deposit
0.970% 01/07/2004 355,336 355,336
Canadian Imperial
Bank of Commerce
Bank Note
0.990% 05/18/2004 1,776,683 1,776,683
Citigroup
Eurodollar Time Deposit
1.080% 01/05/2004 177,668 177,668
Citigroup
Eurodollar Time Deposit
1.090% 03/04/2004 710,673 710,673
Citigroup
Eurodollar Time Deposit
1.100% 01/22/2004 177,668 177,668
Credit Agricole Indosuez
Eurodollar Time Deposit
1.080% 01/06/2004 1,829,983 1,829,983
Dreyfus Cash
Management Plus, Inc.
Money Market Fund 977,176 977,176
Fannie Mae Discount Note
1.062% 01/02/2004 533,005 533,005
Fleet National Bank
Bank Note
1.000% 01/21/2004 888,341 888,341
Freddie Mac
Discount Note
1.062% 01/27/2004 709,209 709,209
General Electric
Capital Corp.
1.092% 01/05/2004 886,728 886,728
Goldman Sachs
Financial Square
Prime Obligations
Money Market Fund 355,337 355,337
Harris Trust &
Savings Bank
Eurodollar Time Deposit
1.050% 01/29/2004 195,435 195,435
Merrill Lynch Premier
Institutional Money
Market Fund 1,222,378 1,222,378
</Table>
The accompanying notes are an integral part of the financial statements.
22
<Page>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
Merrimac Money
Market Fund $ 2,949,294 $ 2,949,294
Morgan Stanley
Dean Witter & Co.
1.080% 01/29/2004 923,876 923,876
National Bank of
Commerce Bank Note
1.120% 05/19/2004 444,171 444,171
Royal Bank of Canada
Eurodollar Time Deposit
1.050% 02/27/2004 444,171 444,171
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/09/2004 355,337 355,337
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/15/2004 888,341 888,341
Royal Bank of Scotland
Eurodollar Time Deposit
1.090% 03/03/2004 444,171 444,171
Southtrust Bank
Eurodollar Time Deposit
1.090% 02/17/2004 533,005 533,005
Svenska Handlesbanken
Eurodollar Time Deposit
1.080% 02/04/2004 444,171 444,171
Svenska Handlesbanken
Eurodollar Time Deposit
1.085% 01/15/2004 444,171 444,171
Svenska Handlesbanken
Eurodollar Time Deposit
1.090% 02/24/2004 888,341 888,341
Toronto Dominion Bank
Eurodollar Time Deposit
1.100% 01/08/2004 177,668 177,668
Wells Fargo
Eurodollar Time Deposit
1.070% 01/20/2004 2,132,019 2,132,019
-------------
24,774,298
-------------
REPURCHASE AGREEMENT -- 0.8%
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/2003, 0.72%,
due 01/02/2004(a) 3,316,949 3,316,949
-------------
U.S. TREASURY BILLS -- 0.2%
U.S. Treasury Bill***
0.892% 01/22/2004 $ 590,000 $ 589,694
-------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 28,680,941
-------------
TOTAL INVESTMENTS -- 106.0%
(COST $437,702,906)**** 429,444,042
OTHER ASSETS/
(LIABILITIES) -- (6.0%) (24,332,363)
-------------
NET ASSETS -- 100.0% $ 405,111,679
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
* Non-income producing security.
** Represents investments of security lending collateral. (NOTE 2).
*** This security is held as collateral for open futures contracts. (NOTE 2).
**** Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $3,317,082. Collateralized by U.S. Government Agency
obligation with a rate of 3.375%, maturity date of 10/25/2024, and
aggregate market value, including accrued interest, of $3,482,797.
The accompanying notes are an integral part of the financial statements.
23
<Page>
MML EQUITY INDEX FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $409,021,965) (NOTE 2) $ 400,763,101
Short-term investments, at amortized cost (NOTE 2) 28,680,941
-----------------
Total Investments (including securities on loan with market values of $23,859,580) 429,444,042
Cash 1,521
Receivables from:
Fund shares sold 86,877
Interest and dividends 578,137
Variation margin on open futures contracts (NOTE 2) 10,144
-----------------
Total assets 430,120,721
-----------------
LIABILITIES:
Payables for:
Fund shares repurchased 106,845
Securities on loan (NOTE 2) 24,774,298
Directors' fees and expenses (NOTE 3) 22,218
Affiliates (NOTE 3):
Investment management fees 35,497
Administration fees 38,500
Accrued expense and other liabilities 31,684
-----------------
Total liabilities 25,009,042
-----------------
NET ASSETS $ 405,111,679
=================
NET ASSETS CONSIST OF:
Paid-in capital $ 423,296,147
Distributions in excess of net investment income (12,524)
Accumulated net realized loss on investments and futures contracts (10,002,471)
Net unrealized depreciation on investments and futures contracts (8,169,473)
-----------------
$ 405,111,679
=================
NET ASSETS:
Class I $ 78,596,846
=================
Class II $ 188,869,092
=================
Class III $ 137,645,741
=================
SHARES OUTSTANDING:
Class I 5,731,716
=================
Class II 13,786,088
=================
Class III 10,066,417
=================
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE:
Class I $ 13.71
=================
Class II $ 13.70
=================
Class III $ 13.67
=================
</Table>
The accompanying notes are an integral part of the financial statements.
24
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends $ 6,066,422
Interest (including securities lending income of $18,585) 82,838
-----------------
Total investment income 6,149,260
-----------------
EXPENSES (NOTE 2):
Investment management fees (NOTE 3) 340,276
Custody fees 44,862
Audit and legal fees 28,399
Directors' fees (NOTE 3) 22,327
Shareholder reporting fees 17,455
Trustee reporting 13,447
-----------------
466,766
Administration fees (NOTE 3):
Class I 194,500
Class II 286,796
Class III 62,249
-----------------
Total expenses 1,010,311
Class II Administration fees waived (NOTE 3) (120,756)
Class III Administration fees waived (NOTE 3) (62,249)
-----------------
Net expenses 827,306
-----------------
NET INVESTMENT INCOME 5,321,954
-----------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment transactions (3,222,941)
Closed futures contracts 703,959
-----------------
Net realized loss (2,518,982)
-----------------
Net change in unrealized appreciation (depreciation) on:
Investments 83,837,371
Open futures contracts 168,388
-----------------
Net unrealized gain 84,005,759
-----------------
NET REALIZED AND UNREALIZED GAIN 81,486,777
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 86,808,731
=================
</Table>
The accompanying notes are an integral part of the financial statements.
25
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 5,321,954 $ 4,425,345
Net realized loss on investment transactions and futures contracts (2,518,982) (6,976,365)
Net change in unrealized appreciation (depreciation) on investments
and futures contracts 84,005,759 (81,724,466)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 86,808,731 (84,275,486)
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income:
Class I (913,733) (721,177)
Class II (2,486,104) (1,859,859)
Class III (1,931,671) (1,828,852)
----------------- -----------------
TOTAL DISTRIBUTIONS FROM NET INVESTMENT INCOME (5,331,508) (4,409,888)
----------------- -----------------
NET FUND SHARE TRANSACTIONS (NOTE 5):
Class I 4,695,413 (3,810,392)
Class II 26,828,374 84,771,905
Class III (7,355,331) (3,569,862)
----------------- -----------------
INCREASE IN NET ASSETS FROM NET FUND SHARE TRANSACTIONS 24,168,456 77,391,651
----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 105,645,679 (11,293,723)
NET ASSETS:
Beginning of year 299,466,000 310,759,723
----------------- -----------------
End of year (including distributions in excess of net investment
income of $12,524 and undistributed net investment income of
$12,132, respectively) $ 405,111,679 $ 299,466,000
================= =================
</Table>
The accompanying notes are an integral part of the financial statements.
26
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
CLASS I
-------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12/31/03 12/31/02 12/31/01 12/31/00 12/31/99
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.83 $ 14.14 $ 16.27 $ 18.13 $ 15.26
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.16*** 0.14*** 0.14*** 0.16*** 0.09
Net realized and unrealized gain (loss) on investments 2.88 (3.31) (2.14) (1.88) 3.01
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment operations 3.04 (3.17) (2.00) (1.72) 3.10
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.16) (0.14) (0.07) (0.14) (0.09)
From net realized gains - - (0.06) - (0.14)
---------- ---------- ---------- ---------- ----------
Total distributions (0.16) (0.14) (0.13) (0.14) (0.23)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 13.71 $ 10.83 $ 14.14 $ 16.27 $ 18.13
========== ========== ========== ========== ==========
TOTAL RETURN(a) 28.08% (22.46)% (12.32)% (9.53)% 20.32%
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 78,597 $ 58,454 $ 81,535 $ 82,798 $ 95,049
Ratio of expenses to average daily net assets:
Before expense waiver 0.44% 0.44% 0.45% 0.45% 0.50%
After expense waiver# N/A N/A N/A 0.45% N/A
Net investment income to average daily net assets 1.37% 1.16% 0.92% 0.89% 0.92%
Portfolio turnover rate 5% 6% 5% 3% 3%
</Table>
<Table>
<Caption>
CLASS II
--------
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01 12/31/00+
---------- ---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.82 $ 14.13 $ 16.26 $ 17.96
---------- ---------- ---------- ------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.19*** 0.17*** 0.16*** 0.13***
Net realized and unrealized gain (loss) on investments 2.87 (3.32) (2.14) (1.68)
---------- ---------- ---------- ------------
Total income (loss) from investment operations 3.06 (3.15) (1.98) (1.55)
---------- ---------- ---------- ------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.18) (0.16) (0.09) (0.15)
From net realized gains - - (0.06) -
---------- ---------- ---------- ------------
Total distributions (0.18) (0.16) (0.15) (0.15)
---------- ---------- ---------- ------------
NET ASSET VALUE, END OF PERIOD $ 13.70 $ 10.82 $ 14.13 $ 16.26
========== ========== ========== ============
TOTAL RETURN(a) 28.31% (22.29)% (12.18)% (8.63)%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 188,869 $ 125,942 $ 74,636 $ 56,998
Ratio of expenses to average daily net assets:
Before expense waiver 0.33% 0.33% 0.34% 0.34%*
After expense waiver## 0.25% 0.26% 0.29% 0.29%*
Net investment income to average daily net assets 1.56% 1.37% 1.08% 1.10%*
Portfolio turnover rate 5% 6% 5% 3%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
+ FOR THE PERIOD FROM MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2000.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE YEAR ENDED DECEMBER 31,
2000.
## COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2000 THROUGH
DECEMBER 31, 2000 AND THE YEARS ENDED DECEMBER 31, 2001, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
27
<Page>
<Table>
<Caption>
CLASS III
---------
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01 12/31/00+
---------- ---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.80 $ 14.10 $ 16.27 $ 17.96
---------- ---------- ---------- ------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.20*** 0.18*** 0.19*** 0.15***
Net realized and unrealized gain (loss) on investments 2.86 (3.31) (2.19) (1.67)
---------- ---------- ---------- ------------
Total income (loss) from investment operations 3.06 (3.13) (2.00) (1.52)
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.19) (0.17) (0.11) (0.17)
From net realized gains - - (0.06) -
---------- ---------- ---------- ------------
Total distributions (0.19) (0.17) (0.17) (0.17)
---------- ---------- ---------- ------------
NET ASSET VALUE, END OF PERIOD $ 13.67 $ 10.80 $ 14.10 $ 16.27
========== ========== ========== ============
TOTAL RETURN(a) 28.38% (22.18)% (12.30)% (8.50)%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 137,646 $ 115,070 $ 154,588 $ 34,111
Ratio of expenses to average daily net assets:
Before expense waiver 0.19% 0.19% 0.20% 0.20%*
After expense waiver## 0.14% 0.14% 0.15% 0.15%*
Net investment income to average daily net assets 1.67% 1.46% 1.32% 1.25%*
Portfolio turnover rate 5% 6% 5% 3%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
+ FOR THE PERIOD FROM MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2000.
## COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2000 THROUGH
DECEMBER 31, 2000 AND THE YEARS ENDED DECEMBER 31, 2001, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
28
<Page>
MML ENHANCED INDEX CORE EQUITY FUND -- PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve total returns
OBJECTIVE OF THE MML that slightly exceed those of the S&P 500 Index over
ENHANCED INDEX CORE the long term, while maintaining a risk profile similar
EQUITY FUND? to that of the Index. The Fund invests primarily in a
diversified portfolio consisting of approximately 90%
of the securities in the S&P 500 Index.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 27.19%, underperforming the 28.67%
return for the S&P 500 Index, a market
capitalization-weighted, unmanaged index of 500 common
stocks.
WHAT WAS THE The equity market rally that began in March 2003
INVESTMENT BACKGROUND continued in the third quarter, fueled by positive
DURING THE PERIOD? corporate earnings reports and largely favorable
economic indicators. As has been the case for much of
2003, the third quarter saw investors continuing to
embrace market risk, small-cap stocks and growth
investing. This resulted in an environment in which
small caps continued to outperform large caps by a wide
margin and economically sensitive sectors outpaced
sectors associated with low risk in almost all equity
market indexes. This trend continued into the fourth
quarter. For the full year, small-cap stocks led the
U.S. equity market, outperforming large caps by
approximately 20%. During 2003, investments in
higher-risk stocks with exposure to the economic cycle
generated the highest returns in all investment styles,
most notably in the small-cap space.
WHAT FACTORS Those stocks that suffered the most during the bear
CONTRIBUTED TO THE market, such as technology issues, rebounded strongly
FUND'S PERFORMANCE? in 2003. Additionally, economically sensitive sectors
including producer durables and materials & processing,
which were once denounced as "old economy," also had a
very strong run during the year. Conversely, sectors
generally categorized as defensive, such as utilities,
consumer staples and health care, lagged. The key to
outperformance throughout 2003 was to tilt portfolios
toward risk factors such as increased exposure to
economic growth factors, high risk and low price. As
the Fund's investment process does not incorporate
macroeconomic bets such as these, it failed to generate
value during the period.
During the third quarter, the market trend of high-risk
stocks (characterized by generally volatile earnings,
poor balance sheets, low stock prices and high debt
levels) outperforming quality companies prevailed. This
hampered the Fund's performance during the period. It
is, however, worth noting that the month of September
offered encouraging news, as high-risk stocks
underperformed their low-risk counterparts by
approximately 200 basis points. Detracting from results
during the fourth quarter and for the year in all of
our investment models was the difficulty, given market
conditions, of identifying those stocks most likely to
underperform.
WHAT IS YOUR OUTLOOK? The equity market currently has tremendous momentum and
until it is impacted by another force, such as rising
bond yields, it will likely remain on its current path.
However, it should be noted that this is currently the
consensus forecast, and therefore it is likely already
priced into the market. In 2004, interest rates could
be the big story. If they do not go up much, 2004 could
be a big up year for equities. If they rise sharply,
the opposite could be true.
29
<Page>
MML ENHANCED INDEX CORE EQUITY FUND
LARGEST STOCK HOLDINGS (12/31/03)
Standard and Poor's Depository Receipts
General Electric Co.
Microsoft Corp.
Citigroup, Inc.
Intel Corp.
Pfizer, Inc.
Exxon Mobil Corp.
Wal-Mart Stores, Inc.
Cisco Systems, Inc.
Bank of America Corp.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Enhanced Index Core Equity Fund and the S&P 500
Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION*
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/2/01 - 12/31/03
MML Enhanced Index Core
Equity Fund 27.19% -2.91%
S&P 500 Index 28.67% -3.21%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION*
<Table>
<Caption>
MML ENHANCED INDEX CORE EQUITY FUND S&P 500 INDEX
5/2/2001 $ 10,000 $ 10,000
12/01 $ 9,292 $ 9,144
12/02 $ 7,267 $ 7,124
12/03 $ 9,242 $ 9,166
</Table>
* PLEASE NOTE, WHILE THE FUND COMMENCED OPERATIONS ON MAY 1, 2001, IT DID NOT
COMMENCE INVESTMENT OPERATIONS UNTIL MAY 2, 2001.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE S&P 500 INDEX IS UNMANAGED AND DOES NOT INCUR EXPENSES,
AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN REFLECTS
CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY PRODUCT
CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED IF THEY
REFLECTED THESE CHARGES.
30
<Page>
MML ENHANCED INDEX CORE EQUITY FUND -- PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
EQUITIES -- 98.6%
ADVERTISING -- 0.2%
Monster Worldwide, Inc.* 100 $ 2,196
Omnicom Group, Inc. 300 26,199
-------------
28,395
-------------
AEROSPACE & DEFENSE -- 1.8%
Boeing Co. 1,700 71,638
General Dynamics Corp. 300 27,117
Goodrich Corp. 1,700 50,473
Honeywell
International, Inc. 1,100 36,773
Lockheed Martin Corp. 200 10,280
Northrop Grumman Corp. 200 19,120
Raytheon Co. 100 3,004
Rockwell Collins, Inc. 300 9,009
United Technologies Corp. 600 56,862
-------------
284,276
-------------
AIR TRANSPORTATION -- 0.1%
Delta Air Lines, Inc. 100 1,181
Southwest Airlines Co. 1,200 19,368
-------------
20,549
-------------
APPAREL, TEXTILES & SHOES -- 0.6%
The Gap, Inc. 1,300 30,173
Jones Apparel Group, Inc. 200 7,046
Limited Brands 900 16,227
Liz Claiborne, Inc. 200 7,092
Nike, Inc. Cl. B 400 27,384
Nordstrom, Inc. 100 3,430
Reebok
International Limited 100 3,932
VF Corp. 200 8,648
-------------
103,932
-------------
AUTOMOTIVE & PARTS -- 1.2%
AutoNation, Inc.* 2,100 38,577
Cooper Tire & Rubber Co. 100 2,138
Delphi Corp. 1,900 19,399
Ford Motor Co. 3,800 60,800
General Motors Corp. 900 48,060
Paccar, Inc. 250 21,280
-------------
190,254
-------------
BANKING, SAVINGS & LOANS -- 11.8%
AmSouth Bancorp 500 12,250
Bank of America Corp. 2,900 233,247
Bank One Corp. 1,500 68,385
BB&T Corp. 200 7,728
Capital One
Financial Corp. 500 $ 30,645
Charter One
Financial, Inc. 325 11,229
Citigroup, Inc. 8,800 427,152
Comerica, Inc. 200 11,212
Fannie Mae 2,200 165,132
Fifth Third Bancorp 100 5,910
First Tennessee
National Corp. 200 8,820
FleetBoston Financial Corp. 1,400 61,110
Freddie Mac 1,700 99,144
Golden West
Financial Corp. 300 30,957
J.P. Morgan Chase & Co. 4,400 161,612
KeyCorp 100 2,932
Marshall and Ilsley Corp. 400 15,300
Mellon Financial Corp. 500 16,055
National City Corp. 900 30,546
Northern Trust Corp. 300 13,926
Providian
Financial Corp.* 500 5,820
Regions Financial Corp. 300 11,160
SLM Corp. 600 22,608
SouthTrust Corp. 500 16,365
State Street Corp. 400 20,832
SunTrust Banks, Inc. 100 7,150
Synovus Financial Corp. 100 2,892
U.S. Bancorp 2,600 77,428
Union Planters Corp. 100 3,149
Wachovia Corp. 3,100 144,429
Washington Mutual, Inc. 1,400 56,168
Wells Fargo & Co. 1,700 100,113
Zions Bancorp 200 12,266
-------------
1,893,672
-------------
BEVERAGES -- 2.2%
Anheuser-Busch
Companies, Inc. 1,000 52,680
The Coca-Cola Co. 3,600 182,700
Coca-Cola Enterprises, Inc. 600 13,122
Coors (Adolph) Co. Cl. B 100 5,610
The Pepsi Bottling
Group, Inc. 300 7,254
PepsiCo, Inc. 2,030 94,639
-------------
356,005
-------------
BROADCASTING, PUBLISHING & PRINTING -- 2.3%
American Greetings
Corp. Cl. A* 200 4,374
Comcast Corp. Cl. A* 1,455 47,826
Dow Jones & Co., Inc. 1,000 $ 49,850
Gannett Co., Inc. 200 17,832
Knight Ridder, Inc. 100 7,737
The McGraw-Hill
Companies, Inc. 300 20,976
Meredith Corp. 100 4,881
New York Times Co. Cl. A 200 9,558
Time Warner, Inc.* 7,500 134,925
Tribune Co. 100 5,160
Univision Communications,
Inc. Cl. A* 500 19,845
Viacom, Inc. Cl. B 1,200 53,256
-------------
376,220
-------------
BUILDING MATERIALS & CONSTRUCTION -- 0.5%
Louisiana-Pacific Corp.* 1,300 23,244
Masco Corp. 600 16,446
Vulcan Materials Co. 700 33,299
-------------
72,989
-------------
CHEMICALS -- 1.1%
Air Products &
Chemicals, Inc. 100 5,283
Dow Chemical Co. 1,400 58,198
Du Pont (E.I.)
de Nemours & Co. 700 32,123
Engelhard Corp. 100 2,995
Hercules, Inc.* 200 2,440
International Flavors &
Fragrances, Inc. 100 3,492
Monsanto Co. 1,500 43,170
PPG Industries, Inc. 200 12,804
Praxair, Inc. 200 7,640
Rohm & Haas Co. 300 12,813
-------------
180,958
-------------
COMMERCIAL SERVICES -- 2.1%
Allied Waste Industries, Inc.* 400 5,552
Apollo Group, Inc. Cl. A* 300 20,400
Block (H&R), Inc. 800 44,296
Cendant Corp.* 2,900 64,583
Concord EFS, Inc.* 1,500 22,260
Convergys Corp.* 2,200 38,412
Donnelley (R.R.) &
Sons Co. 200 6,030
Ecolab, Inc. 200 5,474
Equifax, Inc. 300 7,350
Fluor Corp. 700 27,748
Moody's Corp. 500 30,275
Paychex, Inc. 700 26,040
PerkinElmer, Inc. 1,400 23,898
</Table>
The accompanying notes are an integral part of the financial statements.
31
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
--------- -------
Quest Diagnostics, Inc.* 100 $ 7,311
Ryder System, Inc. 100 3,415
-------------
333,044
-------------
COMMUNICATIONS -- 2.0%
ADC
Telecommunications, Inc.* 3,900 11,583
Andrew Corp.* 1,000 11,510
Avaya, Inc.* 900 11,646
Ciena Corp.* 600 3,984
Citizens
Communications Co.* 400 4,968
Lucent Technologies, Inc.* 5,500 15,620
Network Appliance, Inc.* 900 18,477
Nextel Communications,
Inc. Cl. A* 1,500 42,090
Qualcomm, Inc. 1,100 59,323
SBC Communications, Inc. 4,800 125,136
Scientific-Atlanta, Inc. 700 19,110
Tellabs, Inc.* 500 4,215
-------------
327,662
-------------
COMMUNICATIONS EQUIPMENT -- 0.3%
Motorola, Inc. 4,000 56,280
-------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 0.2%
Autodesk, Inc. 200 4,916
Computer Sciences Corp.* 200 8,846
Teradyne, Inc.* 200 5,090
Unisys Corp.* 400 5,940
-------------
24,792
-------------
COMPUTER PROGRAMMING SERVICES -- 0.0%
Mercury Interactive Corp.* 100 4,864
-------------
COMPUTERS & INFORMATION -- 3.6%
Apple Computer, Inc.* 500 10,685
Cisco Systems, Inc.* 10,383 252,203
Comverse Technology, Inc.* 300 5,277
Dell, Inc.* 4,600 156,216
EMC Corp.* 3,800 49,096
Gateway, Inc.* 2,500 11,500
International
Game Technology 800 28,560
Jabil Circuit, Inc.* 300 8,490
Lexmark International, Inc.* 400 31,456
Solectron Corp.* 2,300 13,593
Symbol Technologies, Inc. 300 5,067
-------------
572,143
-------------
COMPUTERS & OFFICE EQUIPMENT -- 2.3%
Electronic Data
Systems Corp. 700 17,178
Hewlett-Packard Co. 4,454 102,308
International Business
Machines Corp. 2,500 $ 231,700
Pitney Bowes, Inc. 300 12,186
-------------
363,372
-------------
CONTAINERS -- 0.3%
Ball Corp. 100 5,957
Pactiv Corp.* 200 4,780
Sealed Air Corp.* 400 21,656
Temple-Inland, Inc. 300 18,801
-------------
51,194
-------------
COSMETICS & PERSONAL CARE -- 2.2%
Alberto-Culver Co. Cl. B 100 6,308
Avon Products, Inc. 400 26,996
Colgate-Palmolive Co. 400 20,020
The Gillette Co. 1,600 58,768
Kimberly-Clark Corp. 700 41,363
The Procter & Gamble Co. 2,000 199,760
-------------
353,215
-------------
DATA PROCESSING & PREPARATION -- 0.7%
Automatic Data
Processing, Inc. 800 31,688
Deluxe Corp. 500 20,665
First Data Corp. 700 28,763
Fiserv, Inc.* 250 9,877
IMS Health, Inc. 300 7,458
NCR Corp.* 400 15,520
-------------
113,971
-------------
ELECTRIC UTILITIES -- 2.2%
Ameren Corp. 200 9,200
American Electric Power Co. 500 15,255
CenterPoint Energy, Inc. 800 7,752
Cinergy Corp. 200 7,762
Consolidated Edison, Inc. 200 8,602
Constellation Energy
Group, Inc. 200 7,832
Dominion Resources, Inc. 300 19,149
DTE Energy Co. 200 7,880
Duke Energy Corp. 700 14,315
Edison International* 2,400 52,632
Entergy Corp. 400 22,852
Exelon Corp. 700 46,452
FirstEnergy Corp. 200 7,040
FPL Group, Inc. 200 13,084
NiSource, Inc. 300 6,582
PG&E Corp.* 500 13,885
PPL Corp. 300 13,125
Progress Energy, Inc. 100 4,526
Public Service Enterprise
Group, Inc. 300 13,140
Southern Co. 1,500 45,375
Teco Energy, Inc. 200 $ 2,882
TXU Corp. 500 11,860
-------------
351,182
-------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 7.5%
Advanced Micro
Devices, Inc.* 800 11,920
Altera Corp.* 800 18,160
American Power
Conversion Corp. 300 7,335
Analog Devices, Inc. 500 22,825
Applied Micro
Circuits Corp.* 500 2,990
Broadcom Corp. Cl. A* 400 13,636
Emerson Electric Co. 800 51,800
General Electric Co. 14,900 461,602
Intel Corp. 11,300 363,860
JDS Uniphase Corp.* 1,300 4,745
Johnson Controls, Inc. 200 23,224
Kla-Tencor Corp.* 200 11,734
Linear Technology Corp. 400 16,828
LSI Logic Corp.* 600 5,322
Maxim Integrated
Products, Inc. 400 19,920
Micron Technology, Inc.* 800 10,776
Molex, Inc. 200 6,978
National
Semiconductor Corp.* 400 15,764
PMC-Sierra, Inc.* 200 4,030
Qlogic Corp.* 300 15,480
Rockwell Automation, Inc. 300 10,680
Sanmina-SCI Corp.* 900 11,349
Texas Instruments, Inc. 2,500 73,450
Xilinx, Inc.* 500 19,370
-------------
1,203,778
-------------
ENERGY -- 6.2%
Amerada Hess Corp. 200 10,634
Anadarko Petroleum Corp. 400 20,404
Apache Corp. 147 11,922
Burlington Resources, Inc. 300 16,614
ChevronTexaco Corp. 2,162 186,775
ConocoPhillips 1,847 121,108
Devon Energy Corp. 700 40,082
EOG Resources, Inc. 100 4,617
Exxon Mobil Corp. 8,600 352,600
Halliburton Co. 700 18,200
Kerr-McGee Corp. 200 9,298
KeySpan Corp. 200 7,360
Kinder Morgan, Inc. 200 11,820
Marathon Oil Corp. 500 16,545
Nabors Industries Limited* 200 8,300
Nicor, Inc. 100 3,404
Noble Corp.* 100 3,578
</Table>
The accompanying notes are an integral part of the financial statements.
32
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
--------- -------
Occidental Petroleum Corp. 400 $ 16,896
Peoples Energy Corp. 100 4,204
Schlumberger Limited 1,200 65,664
Sempra Energy 400 12,024
Sunoco, Inc. 400 20,460
Unocal Corp. 300 11,049
The Williams
Companies, Inc. 1,700 16,694
Xcel Energy, Inc. 500 8,490
-------------
998,742
-------------
ENTERTAINMENT & LEISURE -- 0.5%
Brunswick Corp. 200 6,366
Harrah's
Entertainment, Inc. 100 4,977
The Walt Disney Co. 3,200 74,656
-------------
85,999
-------------
FINANCIAL SERVICES -- 7.6%
American Express Co. 1,000 48,230
Apartment Investment &
Management Co. Cl. A 100 3,450
Bear Stearns
Companies, Inc. 400 31,980
Countrywide Financial Corp. 533 40,428
Franklin Resources, Inc. 300 15,618
The Goldman Sachs
Group, Inc. 700 69,111
Huntington
Bancshares, Inc. 300 6,750
Lehman Brothers
Holdings, Inc. 500 38,610
MBNA Corp. 2,550 63,368
Merrill Lynch & Co., Inc. 1,400 82,110
Morgan Stanley 1,800 104,166
PNC Financial Services
Group, Inc. 400 21,892
Price (T. Rowe)
Group, Inc. 100 4,741
ProLogis Trust 200 6,418
The Schwab
(Charles) Corp. 1,800 21,312
Simon Property
Group, Inc. 300 13,902
Standard and Poor's
Depository Receipts 5,900 656,611
-------------
1,228,697
-------------
FOODS -- 1.5%
Archer-Daniels-Midland Co. 1,330 20,243
Campbell Soup Co. 400 10,720
ConAgra Foods, Inc. 300 7,917
General Mills, Inc. 400 18,120
Heinz (H. J.) Co. 500 18,215
Hershey Foods Corp. 200 15,398
Kellogg Co. 700 $ 26,656
The Kroger Co.* 1,100 20,361
McCormick & Co., Inc. 100 3,010
Sara Lee Corp. 900 19,539
Starbucks Corp.* 100 3,306
SuperValu, Inc. 200 5,718
Sysco Corp. 1,600 59,568
Wrigley (Wm.) Jr. Co. 300 16,863
-------------
245,634
-------------
FOREST PRODUCTS & PAPER -- 0.5%
Boise Cascade Corp. 100 3,286
Georgia-Pacific Corp. 700 21,469
International Paper Co. 400 17,244
MeadWestvaco Corp. 300 8,925
Plum Creek Timber
Co., Inc. 100 3,045
Weyerhaeuser Co. 300 19,200
-------------
73,169
-------------
HEALTHCARE -- 0.6%
Express Scripts, Inc.* 100 6,643
Humana, Inc.* 300 6,855
Manor Care, Inc. 100 3,457
UnitedHealth Group, Inc. 800 46,544
Wellpoint Health
Networks, Inc.* 300 29,097
-------------
92,596
-------------
HOME CONSTRUCTION, FURNISHINGS &
APPLIANCES -- 0.4%
Centex Corp. 100 10,765
KB Home 100 7,252
Maytag Corp. 100 2,785
Pulte Homes, Inc. 400 37,448
Whirlpool Corp. 100 7,265
-------------
65,515
-------------
HOUSEHOLD PRODUCTS -- 0.7%
Black & Decker Corp. 600 29,592
The Clorox Co. 300 14,568
Corning, Inc.* 2,700 28,161
Fortune Brands, Inc. 200 14,298
Newell Rubbermaid, Inc. 100 2,277
Sherwin-Williams Co. 500 17,370
Snap-On, Inc. 100 3,224
The Stanley Works 100 3,787
-------------
113,277
-------------
INDUSTRIAL - DIVERSIFIED -- 1.9%
3M Co. 1,100 93,533
Cooper Industries
Limited Cl. A 200 11,586
Danaher Corp. 200 18,350
Eaton Corp. 200 $ 21,596
Illinois Tool Works, Inc. 400 33,564
ITT Industries, Inc. 100 7,421
Textron, Inc. 800 45,648
Tyco International Limited 2,728 72,292
-------------
303,990
-------------
INFORMATION RETRIEVAL SERVICES -- 0.3%
Yahoo!, Inc.* 900 40,653
-------------
INSURANCE -- 4.5%
ACE Limited 400 16,568
Aetna, Inc. 400 27,032
AFLAC, Inc. 700 25,326
Allstate Corp. 1,100 47,322
Ambac Financial
Group, Inc. 200 13,878
American International
Group, Inc. 2,789 184,855
Anthem, Inc.* 200 15,000
Aon Corp. 400 9,576
Chubb Corp. 300 20,430
Cigna Corp. 500 28,750
Cincinnati Financial Corp. 200 8,376
The Hartford Financial
Services Group, Inc. 200 11,806
Jefferson-Pilot Corp. 200 10,130
John Hancock Financial
Services, Inc. 500 18,750
Lincoln National Corp. 1,000 40,370
Loews Corp. 100 4,945
Marsh & McLennan
Companies, Inc. 200 9,578
MBIA, Inc. 300 17,769
Metlife, Inc. 1,500 50,505
Principal Financial
Group, Inc. 700 23,149
Progressive Corp. 300 25,077
Prudential Financial, Inc. 1,100 45,947
Safeco Corp. 200 7,786
The St. Paul
Companies, Inc. 300 11,895
Torchmark Corp. 200 9,108
Travelers Property
Casualty Corp. Cl. B 1,500 25,455
UnumProvident Corp. 500 7,885
XL Capital Limited Cl. A 100 7,755
-------------
725,023
-------------
LODGING -- 0.3%
Hilton Hotels Corp. 600 10,278
Marriott International,
Inc. Cl. A 300 13,860
</Table>
The accompanying notes are an integral part of the financial statements.
33
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
--------- -------
Starwood Hotels & Resorts
Worldwide, Inc. 600 $ 21,582
-------------
45,720
-------------
MACHINERY & COMPONENTS -- 0.5%
Baker Hughes, Inc. 100 3,216
Caterpillar, Inc. 100 8,302
Cummins, Inc. 100 4,894
Deere & Co. 300 19,515
Dover Corp. 300 11,925
Ingersoll-Rand Co. Cl. A 300 20,364
Pall Corp. 200 5,366
Parker-Hannifin Corp. 100 5,950
-------------
79,532
-------------
MANUFACTURING -- 0.3%
Applied Materials, Inc.* 2,200 49,390
-------------
MEDICAL SUPPLIES -- 2.0%
Agilent Technologies, Inc.* 700 20,468
Allergan, Inc. 100 7,681
Applied Biosystems
Group-Applera Corp. 200 4,142
Bard (C.R.), Inc. 200 16,250
Bausch & Lomb, Inc. 500 25,950
Baxter International, Inc. 800 24,416
Becton, Dickinson & Co. 500 20,570
Biomet, Inc. 100 3,641
Boston Scientific Corp.* 800 29,408
Guidant Corp. 900 54,180
Medtronic, Inc. 1,300 63,193
St. Jude Medical, Inc.* 200 12,270
Stryker Corp. 300 25,503
Tektronix, Inc. 200 6,320
Thermo Electron Corp.* 200 5,040
Waters Corp.* 100 3,316
Zimmer Holdings, Inc.* 100 7,040
-------------
329,388
-------------
METALS & MINING -- 0.4%
Alcoa, Inc. 900 34,200
Crane Co. 100 3,074
Freeport-McMoRan
Copper & Gold, Inc. Cl. B 200 8,426
Newmont Mining Corp. 500 24,305
-------------
70,005
-------------
PHARMACEUTICALS -- 8.4%
Abbott Laboratories 2,300 107,180
AmerisourceBergen Corp. 100 5,615
Amgen, Inc.* 1,820 112,476
Bristol-Myers Squibb Co. 2,900 82,940
Cardinal Health, Inc. 100 6,116
Eli Lilly & Co. 1,200 84,396
Genzyme Corp.* 300 $ 14,802
Johnson & Johnson 4,496 232,263
King
Pharmaceuticals, Inc.* 2,466 37,631
McKesson Corp. 1,000 32,160
Medco Health
Solutions, Inc.* 373 12,678
Medimmune, Inc.* 300 7,620
Merck & Co., Inc. 3,300 152,460
Pfizer, Inc. 10,000 353,300
Schering-Plough Corp. 200 3,478
Sigma-Aldrich Corp. 100 5,718
Watson
Pharmaceutical, Inc.* 200 9,200
Wyeth 2,100 89,145
-------------
1,349,178
-------------
PHOTOGRAPHY EQUIPMENT/SUPPLIES -- 0.1%
Eastman Kodak Co. 400 10,268
-------------
PREPACKAGED SOFTWARE -- 4.6%
Adobe Systems, Inc. 600 23,580
BMC Software, Inc.* 500 9,325
Citrix Systems, Inc.* 800 16,968
Computer Associates
International, Inc. 900 24,606
Compuware Corp.* 500 3,020
Electronic Arts, Inc.* 200 9,556
Intuit, Inc.* 200 10,582
Microsoft Corp. 16,100 443,394
Novell, Inc.* 500 5,260
Oracle Corp.* 7,300 96,360
Peoplesoft, Inc.* 600 13,680
Siebel Systems, Inc.* 600 8,322
SunGard Data Systems, Inc.* 400 11,084
Symantec Corp.* 800 27,720
Veritas Software Corp.* 900 33,444
-------------
736,901
-------------
REAL ESTATE -- 0.2%
Equity Office
Properties Trust 600 17,190
Equity Residential 300 8,853
-------------
26,043
-------------
RESTAURANTS -- 0.6%
Darden Restaurants, Inc. 250 5,260
McDonald's Corp. 2,800 69,524
Wendy's International, Inc. 100 3,924
Yum! Brands, Inc.* 400 13,760
-------------
92,468
-------------
RETAIL -- 6.0%
AutoZone, Inc.* 400 34,084
Bed Bath & Beyond, Inc.* 400 $ 17,340
Best Buy Co., Inc. 700 36,568
Big Lots, Inc.* 200 2,842
Costco Wholesale Corp.* 900 33,462
CVS Corp. 800 28,896
Dollar General Corp. 700 14,693
Family Dollar Stores, Inc. 200 7,176
Federated Department
Stores, Inc. 700 32,991
The Home Depot, Inc. 4,400 156,156
J.C. Penney Company, Inc. 100 2,628
Lowe's Companies, Inc. 1,600 88,624
The May Department
Stores Co. 400 11,628
RadioShack Corp. 1,500 46,020
Sears, Roebuck and Co. 400 18,196
Staples, Inc.* 800 21,840
Tiffany & Co. 200 9,040
TJX Companies, Inc. 700 15,435
Toys R Us, Inc.* 300 3,792
Walgreen Co. 1,400 50,932
Wal-Mart Stores, Inc. 6,200 328,910
-------------
961,253
-------------
RETAIL - GROCERY -- 0.1%
Albertson's, Inc. 500 11,325
Winn-Dixie Stores, Inc. 200 1,990
-------------
13,315
-------------
TELEPHONE UTILITIES -- 2.2%
Alltel Corp. 400 18,632
AT&T Corp. 1,800 36,540
BellSouth Corp. 4,000 113,200
CenturyTel, Inc. 200 6,524
Sprint Corp. (FON Group) 2,100 34,482
Sprint Corp. (PCS Group)* 1,400 7,868
Verizon
Communications, Inc. 4,100 143,828
-------------
361,074
-------------
TOBACCO -- 1.1%
Altria Group, Inc. 3,100 168,702
Reynolds (R.J.) Tobacco
Holdings, Inc. 100 5,815
UST, Inc. 200 7,138
-------------
181,655
-------------
TOYS, GAMES -- 0.2%
Hasbro, Inc. 1,600 34,048
-------------
TRANSPORTATION -- 1.7%
Burlington Northern
Santa Fe Corp. 500 16,175
Carnival Corp. 1,100 43,703
CSX Corp. 100 3,594
</Table>
The accompanying notes are an integral part of the financial statements.
34
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
--------- -------
FedEx Corp. 500 $ 33,750
Norfolk Southern Corp. 100 2,365
Union Pacific Corp. 300 20,844
United Parcel Service,
Inc. Cl. B 2,100 156,555
-------------
276,986
-------------
TOTAL EQUITIES
(COST $14,180,569) 15,853,266
-------------
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT
---------
SHORT-TERM INVESTMENTS -- 1.4%
REPURCHASE AGREEMENT
Investors Bank & Trust Company
Repurchase Agreement,
dated 12/31/03, 0.72%,
due 01/02/2004(a) $226,636 226,636
-------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 226,636
-------------
TOTAL INVESTMENTS -- 100.0%
(COST $14,407,205)** 16,079,902
OTHER ASSETS/
(LIABILITIES) -- 0.0% 2,615
-------------
NET ASSETS -- 100.0% $ 16,082,517
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
* Non-income producing security.
** Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $226,645. Collateralized by U.S. Government Agency
obligation with a rate of 3.875%, maturity date of 07/25/2026 and an
aggregate market value, including accrued interest, of $237,967.
The accompanying notes are an integral part of the financial statements.
35
The remainder of this page is intentionally left blank.
<Page>
MML ENHANCED INDEX CORE EQUITY FUND -- FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $14,180,569) (NOTE 2) $ 15,853,266
Short-term investments, at amortized cost (NOTE 2) 226,636
-----------------
Total Investments 16,079,902
Receivables from:
Investment adviser (NOTE 3) 2,418
Fund shares sold 98
Interest and dividends 24,880
-----------------
Total assets 16,107,298
-----------------
LIABILITIES:
Payables for:
Fund shares repurchased 102
Directors' fees and expenses (NOTE 3) 707
Affiliates (NOTE 3):
Investment management fees 7,651
Accrued expense and other liabilities 16,321
-----------------
Total liabilities 24,781
-----------------
NET ASSETS $ 16,082,517
=================
NET ASSETS CONSIST OF:
Paid-in capital $ 16,570,059
Distributions in excess of net investment income (475)
Accumulated net realized loss on investments and futures contracts (2,159,764)
Net unrealized appreciation on investments 1,672,697
-----------------
$ 16,082,517
=================
SHARES OUTSTANDING: 1,789,474
=================
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 8.99
=================
</Table>
The accompanying notes are an integral part of the financial statements.
36
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends $ 217,961
Interest 512
-----------------
Total investment income 218,473
-----------------
EXPENSES:
Investment management fees (NOTE 3) 66,674
Audit and legal fees 19,106
Custody fees 6,616
Trustee reporting 2,851
Directors' fees (NOTE 3) 780
Shareholder reporting fees 548
-----------------
Total expenses 96,575
Expenses waived (NOTE 3) (16,567)
-----------------
Net expenses 80,008
-----------------
NET INVESTMENT INCOME 138,465
-----------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment transactions (266,503)
Closed futures contracts 1,720
-----------------
Net realized loss (264,783)
-----------------
Net change in unrealized appreciation (depreciation) on investments 3,213,416
-----------------
NET REALIZED AND UNREALIZED GAIN 2,948,633
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,087,098
=================
</Table>
The accompanying notes are an integral part of the financial statements.
37
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 138,465 $ 97,180
Net realized loss on investment transactions and futures contracts (264,783) (1,350,834)
Net change in unrealized appreciation (depreciation) on investments 3,213,416 (1,263,929)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,087,098 (2,517,583)
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income (138,749) (96,830)
NET FUND SHARE TRANSACTIONS (NOTE 5) 3,467,743 1,720,629
----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 6,416,092 (893,784)
NET ASSETS:
Beginning of year 9,666,425 10,560,209
----------------- -----------------
End of year (including distributions in excess of net investment income of
$475 and undistributed net investment income of $269, respectively) $ 16,082,517 $ 9,666,425
================= =================
</Table>
The accompanying notes are an integral part of the financial statements.
38
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01+
---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.13 $ 9.21 $ 10.00
---------- ---------- ------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.08 0.07 0.06***
Net realized and unrealized gain (loss) on investments 1.86 (2.08) (0.80)
---------- ---------- ------------
Total income (loss) from investment operations 1.94 (2.01) (0.74)
---------- ---------- ------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.08) (0.07) (0.05)
---------- ---------- ------------
NET ASSET VALUE, END OF PERIOD $ 8.99 $ 7.13 $ 9.21
========== ========== ============
TOTAL RETURN(a) 27.19% (21.80)% (7.08)%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 16,083 $ 9,666 $ 10,560
Ratio of expenses to average daily net assets:
Before expense waiver 0.80% 0.95% 0.76%*
After expense waiver# 0.66% 0.66% 0.66%*
Net investment income to average daily net assets 1.14% 0.96% 0.93%*
Portfolio turnover rate 78% 82% 59%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
+ FOR THE PERIOD FROM MAY 1, 2001 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2001.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2001 THROUGH
DECEMBER 31, 2001 AND THE YEARS ENDED DECEMBER 31, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
39
<Page>
MML GROWTH EQUITY FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML growth of capital and future income by investing
GROWTH EQUITY FUND? primarily in a diversified portfolio of equity
securities, which may consist of up to 35% foreign
securities (including those of companies in emerging
markets), using a growth-oriented investment strategy.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 23.02%, underperforming the 28.67%
return of the S&P 500 Index, a market
capitalization-weighted, unmanaged index of 500 common
stocks.
WHAT WAS THE For the third quarter, small-cap stocks outperformed
INVESTMENT BACKGROUND both mid caps and large caps. During the same period,
DURING THE PERIOD? growth issues outperformed their value counterparts
across all market capitalizations. The landscape was
somewhat similar in the fourth quarter, as small caps
once again led the markets. This time, however, value
stocks outperformed growth issues across all market
capitalizations.
WHAT FACTORS Good relative positioning in the health care and
CONTRIBUTED TO THE consumer staples sectors provided the largest
FUND'S PERFORMANCE? contributions to performance during the third quarter.
In health care, we were rewarded for maintaining our
cautious stance on stocks of major pharmaceutical
companies that underperformed. A significant
underweighting in the consumer staples sector also
helped performance, as the market favored stocks in
less defensive areas. Conversely, leisure holdings lost
traction during the three months ending September 30,
as soft near-term demand for radio advertising buffeted
our major holdings. Constraining relative performance
was our underweighted position in the technology
sector. Worries that weak corporate technology spending
and excess capacity would dampen profits abated during
the period, as inventories contracted and certain
product markets, such as laptop PCs, showed surprising
strength.
In the fourth quarter, the largest relative contributor
to performance was strong stock selection in the
industrial goods sector, although strength in the
leisure sector also was a positive factor. Although
advertising spending was lackluster throughout the
majority of 2003, bookings began to improve during the
month of December, sending many of our holdings among
advertising-sensitive media franchises higher. The
largest detractor during the fourth quarter came from
several underperforming stocks in the technology
sector. Other detractors included several
underperforming holdings in transportation, utilities
and communications, and retailing.
WHAT IS YOUR OUTLOOK? Our bottom-up stock selection process resulted in
continued emphasis on opportunities in technology,
leisure, and financial services during the quarter. In
technology, we are primarily positioned in industry
leaders that we believe can generate strong but
sustainable earnings growth and that should benefit
from a continued improvement in corporate spending on
technology items into 2004. In leisure, we continue to
own many of the media franchises that we believe should
benefit from increased advertising spending and an
improving economy, particularly next year with a U.S.
presidential election and the 2004 Olympics in Greece.
And finally, in financials, we are invested in the
brokers and asset managers that we believe stand to
benefit from a continued recovery in investment banking
revenues as merger and acquisition and IPO activity
improves.
40
<Page>
MML GROWTH EQUITY FUND
LARGEST STOCK HOLDINGS (12/31/03)
Microsoft Corp.
Cisco Systems, Inc.
Pfizer, Inc.
General Electric Co.
Johnson & Johnson
Tyco International Limited
American International Group, Inc.
Dell, Inc.
Intel Corp.
Citigroup, Inc.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Growth Equity Fund and the S&P 500 Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/3/99 - 12/31/03
MML Growth Equity Fund 23.02% -4.47%
S&P 500 Index 28.67% -2.43%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML GROWTH EQUITY FUND S&P 500 INDEX
5/3/99 $ 10,000 $ 10,000
12/99 $ 13,010 $ 11,100
12/00 $ 12,159 $ 10,090
12/01 $ 9,096 $ 8,892
12/02 $ 6,567 $ 6,928
12/03 $ 8,078 $ 8,913
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE S&P 500 INDEX IS UNMANAGED AND DOES NOT INCUR EXPENSES,
AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN REFLECTS
CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY PRODUCT
CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED IF THEY
REFLECTED THESE CHARGES.
41
<Page>
MML GROWTH EQUITY FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
EQUITIES -- 97.2%
ADVERTISING -- 0.7%
Getty Images, Inc.* 700 $ 35,091
Lamar Advertising Co.* 2,000 74,640
Monster Worldwide, Inc.* 1,400 30,744
-------------
140,475
-------------
AEROSPACE & DEFENSE -- 0.1%
Honeywell International, Inc. 100 3,343
Lockheed Martin Corp. 400 20,560
-------------
23,903
-------------
AIR TRANSPORTATION -- 0.9%
JetBlue Airways Corp.* 940 24,929
Southwest Airlines Co. 10,850 175,119
-------------
200,048
-------------
APPAREL, TEXTILES & SHOES -- 1.5%
Coach, Inc.* 1,970 74,367
Hot Topic, Inc.* 800 23,568
Nike, Inc. Cl. B 2,140 146,504
Reebok International Limited 1,800 70,776
-------------
315,215
-------------
AUTOMOTIVE & PARTS -- 0.5%
Bayerische Motoren Werke AG 800 37,084
Harley-Davidson, Inc. 1,600 76,048
-------------
113,132
-------------
BANKING, SAVINGS & LOANS -- 4.5%
Bank of New York Co., Inc. 5,000 165,600
Citigroup, Inc. 7,800 378,612
Fannie Mae 2,700 202,662
Mellon Financial Corp. 1,100 35,321
Northern Trust Corp. 1,430 66,381
SLM Corp. 2,940 110,779
-------------
959,355
-------------
BEVERAGES -- 1.2%
Anheuser-Busch Companies, Inc. 740 38,983
PepsiCo, Inc. 4,660 217,249
-------------
256,232
-------------
BROADCASTING, PUBLISHING & PRINTING -- 8.3%
Citadel Broadcasting Corp.* 200 4,474
Clear Channel Communications, Inc. 5,950 278,638
Comcast Corp. Cl. A* 7,738 254,348
Cox Communications, Inc. Cl. A* 800 $ 27,560
Entercom Communications Corp.* 500 26,480
InterActive Corp.* 7,240 245,653
Liberty Media Corp. Cl. A* 6,200 73,718
New York Times Co. Cl. A 1,200 57,348
News Corp. Limited Sponsored ADR (Australia) 2,170 78,337
Time Warner, Inc.* 15,350 276,147
Univision Communications, Inc. Cl. A* 1,500 59,535
Viacom, Inc. Cl. B 7,444 330,365
Westwood One, Inc.* 2,200 75,262
-------------
1,787,865
-------------
CHEMICALS -- 0.3%
Air Products & Chemicals, Inc. 1,000 52,830
Georgia Gulf Corp. 100 2,888
-------------
55,718
-------------
COMMERCIAL SERVICES -- 2.1%
Accenture Limited Cl. A* 2,640 69,485
Akamai Technologies, Inc.* 3,400 36,550
Apollo Group, Inc. Cl. A* 1,070 72,760
Career Education Corp.* 1,640 65,715
Cendant Corp.* 500 11,135
eBay, Inc.* 2,890 186,665
Manpower, Inc. 100 4,708
Waste Management, Inc. 100 2,960
-------------
449,978
-------------
COMMUNICATIONS -- 2.8%
Andrew Corp.* 800 9,208
EchoStar Communications Corp. Cl. A* 6,400 217,600
Juniper Networks, Inc.* 1,100 20,548
L-3 Communications Holdings, Inc.* 100 5,136
Nextel Communications, Inc. Cl. A* 3,140 88,108
Nokia Oyj Sponsored ADR (Finland) 3,890 66,130
Nortel Networks Corp.* 15,800 66,834
NTL, Inc.* 800 55,800
Qualcomm, Inc. 1,300 70,109
-------------
599,473
-------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 0.6%
Avid Technology, Inc.* 500 24,000
Cadence Design Systems, Inc.* 3,520 63,290
NetScreen Technologies, Inc.* 400 9,900
Synopsys, Inc.* 900 $ 30,384
-------------
127,574
-------------
COMPUTER PROGRAMMING SERVICES -- 0.6%
Mercury Interactive Corp.* 2,800 136,192
-------------
COMPUTER RELATED SERVICES -- 0.1%
Manhattan Associates, Inc.* 500 13,820
-------------
COMPUTERS & INFORMATION -- 5.9%
Apple Computer, Inc.* 1,540 32,910
Cisco Systems, Inc.* 30,020 729,186
Dell, Inc.* 11,410 387,484
EMC Corp.* 2,300 29,716
Foundry Networks, Inc.* 1,300 35,568
International Game Technology 1,300 46,410
Zebra Technologies Corp. Cl. A* 60 3,982
-------------
1,265,256
-------------
COMPUTERS & OFFICE EQUIPMENT -- 1.4%
Hewlett-Packard Co. 500 11,485
International Business Machines Corp. 3,220 298,430
-------------
309,915
-------------
CONTAINERS -- 0.0%
Smurfit-Stone Container Corp. 400 7,428
-------------
COSMETICS & PERSONAL CARE -- 2.0%
Avon Products, Inc. 2,570 173,449
Colgate-Palmolive Co. 2,580 129,129
The Procter & Gamble Co. 1,280 127,846
-------------
430,424
-------------
DATA PROCESSING & PREPARATION -- 1.0%
Affiliated Computer Services, Inc. Cl. A* 1,400 76,244
The BISYS Group, Inc.* 800 11,904
First Data Corp. 800 32,872
Fiserv, Inc.* 2,340 92,453
-------------
213,473
-------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 10.7%
Agere Systems, Inc. Cl. B* 2,300 6,670
Amphenol Corp. Cl. A* 400 25,572
Analog Devices, Inc. 5,800 264,770
Emerson Electric Co. 590 38,203
Flextronics International Limited* 3,100 46,004
General Electric Co. 15,390 476,782
</Table>
The accompanying notes are an integral part of the financial statements.
42
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
Intel Corp. 11,870 $ 382,214
Linear Technology Corp. 1,500 63,105
Marvell Technology Group Limited* 2,900 109,997
Maxim Integrated Products, Inc. 1,470 73,206
Microchip Technology, Inc. 3,720 124,099
Molex, Inc. 1,400 48,846
Novellus Systems, Inc.* 2,500 105,125
PMC-Sierra, Inc.* 1,900 38,285
Rockwell Automation, Inc. 900 32,040
STMicroelectronics NV NY Shares 200 5,402
Taiwan Semiconductor Manufacturing Co. Limited
Sponsored ADR (Taiwan)* 7,314 74,895
Texas Instruments, Inc. 7,800 229,164
Xilinx, Inc.* 4,200 162,708
-------------
2,307,087
-------------
ENERGY -- 0.3%
BJ Services Co.* 1,300 46,670
GlobalSantaFe Corp. 500 12,415
Noble Corp.* 400 14,312
-------------
73,397
-------------
ENTERTAINMENT & LEISURE -- 0.1%
The Walt Disney Co. 540 12,598
-------------
FINANCIAL SERVICES -- 4.4%
American Express Co. 6,670 321,694
The Goldman Sachs Group, Inc. 1,000 98,730
MBNA Corp. 8,000 198,800
Merrill Lynch & Co., Inc. 2,580 151,317
Morgan Stanley 2,450 141,782
The Schwab (Charles) Corp. 3,100 36,704
-------------
949,027
-------------
FOODS -- 0.1%
Sysco Corp. 470 17,498
-------------
HEALTHCARE -- 0.7%
Caremark Rx, Inc.* 3,950 100,054
HCA, Inc. 1,100 47,256
Tenet Healthcare Corp.* 400 6,420
-------------
153,730
-------------
HOUSEHOLD PRODUCTS -- 0.6%
The Clorox Co. 1,000 48,560
Corning, Inc.* 8,100 84,483
-------------
133,043
-------------
INDUSTRIAL - DISTRIBUTION -- 0.1%
Grainger (W.W.), Inc. 600 $ 28,434
-------------
INDUSTRIAL - DIVERSIFIED -- 4.6%
3M Co. 2,210 187,916
Cooper Industries Limited Cl. A 500 28,965
Danaher Corp. 1,380 126,615
Eaton Corp. 600 64,788
Illinois Tool Works, Inc. 1,340 112,439
Tyco International Limited 17,380 460,570
-------------
981,293
-------------
INFORMATION RETRIEVAL SERVICES -- 0.1%
Yahoo!, Inc.* 700 31,619
-------------
INSURANCE -- 2.9%
ACE Limited 1,200 49,704
American International Group, Inc. 6,500 430,820
The Hartford Financial Services Group, Inc. 1,300 76,739
Marsh & McLennan Companies, Inc. 500 23,945
UnumProvident Corp. 1,700 26,809
XL Capital Limited Cl. A 300 23,265
-------------
631,282
-------------
INTERNET CONTENT -- 0.2%
BEA Systems, Inc.* 2,820 34,686
-------------
LODGING -- 0.3%
Hilton Hotels Corp. 2,340 40,084
Starwood Hotels & Resorts Worldwide, Inc. 600 21,582
-------------
61,666
-------------
MACHINERY & COMPONENTS -- 0.3%
Parker-Hannifin Corp. 400 23,800
Smith International, Inc.* 1,240 51,485
-------------
75,285
-------------
MANUFACTURING -- 0.0%
Applied Materials, Inc.* 300 6,735
-------------
MEDICAL SUPPLIES -- 4.0%
Allergan, Inc. 600 46,086
Applied Biosystems Group-Applera Corp. 1,600 33,136
Bard (C.R.), Inc. 1,000 81,250
Baxter International, Inc. 3,100 94,612
Biomet, Inc. 2,430 88,476
CTI Molecular Imaging, Inc.* 400 6,764
Edwards Lifesciences Corp.* 100 3,008
Guidant Corp. 2,480 $ 149,296
Medtronic, Inc. 3,920 190,551
Thermo Electron Corp.* 2,600 65,520
Zimmer Holdings, Inc.* 1,280 90,112
-------------
848,811
-------------
METALS & MINING -- 0.2%
BHP Billiton Limited Sponsored ADR (Australia) 2,170 39,624
-------------
PHARMACEUTICALS -- 12.6%
Abbott Laboratories 4,600 214,360
Alcon, Inc. 970 58,724
AmerisourceBergen Corp. 470 26,391
Amgen, Inc.* 3,260 201,468
AstraZeneca PLC 70 3,358
Cardinal Health, Inc. 2,380 145,561
Eli Lilly & Co. 870 61,187
Forest Laboratories, Inc.* 1,100 67,980
Genentech, Inc.* 190 17,778
Genzyme Corp.* 3,900 192,426
Gilead Sciences, Inc.* 4,600 267,444
Invitrogen Corp.* 440 30,800
Johnson & Johnson 9,020 465,973
Novartis AG 200 9,080
Pfizer, Inc. 16,062 567,470
Roche Holding AG 500 50,435
Schering-Plough Corp. 5,310 92,341
Watson Pharmaceutical, Inc.* 600 27,600
Wyeth 4,700 199,515
-------------
2,699,891
-------------
PREPACKAGED SOFTWARE -- 7.6%
DST Systems, Inc.* 1,200 50,112
Intuit, Inc.* 1,250 66,138
Microsoft Corp. 32,280 888,991
Network Associates, Inc.* 2,700 40,608
Oracle Corp.* 14,600 192,720
SunGard Data Systems, Inc.* 400 11,084
Symantec Corp.* 4,960 171,864
Veritas Software Corp.* 5,506 204,603
-------------
1,626,120
-------------
RESTAURANTS -- 0.8%
McDonald's Corp. 2,870 71,262
Outback Steakhouse, Inc. 2,300 101,683
-------------
172,945
-------------
RETAIL --7.9%
Best Buy Co., Inc. 1,470 76,793
Carmax, Inc.* 1,170 36,188
CVS Corp. 2,120 76,574
The Home Depot, Inc. 3,200 113,568
</Table>
The accompanying notes are an integral part of the financial statements.
43
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
Kohl's Corp.* 5,800 $ 260,652
Lowe's Companies, Inc. 720 39,881
Pier 1 Imports, Inc. 800 17,488
Rite Aid Corp.* 4,700 28,388
Staples, Inc.* 4,500 122,850
Target Corp. 9,680 371,712
TJX Companies, Inc. 5,100 112,455
Walgreen Co. 3,600 130,968
Wal-Mart Stores, Inc. 4,890 259,415
Williams-Sonoma, Inc.* 1,100 38,247
-------------
1,685,179
-------------
TELEPHONE UTILITIES -- 2.1%
Adtran, Inc. 7,360 228,160
Amdocs Limited* 3,600 80,928
AT&T Wireless Services, Inc.* 9,600 76,704
Sprint Corp. (PCS Group)* 5,900 33,158
Vodafone Group PLC Sponsored ADR
(United Kingdom) 966 24,189
-------------
443,139
-------------
TOBACCO -- 0.3%
Altria Group, Inc. 1,100 59,862
-------------
TRANSPORTATION -- 1.8%
Carnival Corp. 4,100 162,893
FedEx Corp. 2,400 162,000
Orbitz, Inc. Cl. A* 100 2,403
United Parcel Service, Inc. Cl. B 850 63,368
-------------
390,664
-------------
TOTAL EQUITIES
(COST $19,727,053) 20,869,091
-------------
RIGHTS -- 0.0%
COMPUTERS & INFORMATION
Seagate Technology* ~ 11,100 -
-------------
TOTAL RIGHTS
(COST $0) -
-------------
TOTAL LONG TERM INVESTMENTS
(COST $19,727,053) 20,869,091
-------------
<Caption>
PRINCIPAL
AMOUNT
-------------
SHORT-TERM INVESTMENTS -- 8.4%
CASH EQUIVALENTS -- 6.4%**
Bank of Montreal Eurodollar Time Deposit
1.060% 01/15/2004 $ 3,700 3,700
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
Bank of Montreal Eurodollar Time Deposit
1.060% 02/17/2004 $ 19,550 $ 19,550
Bank of Nova Scotia Eurodollar Time Deposit
1.080% 03/03/2004 58,648 58,648
Bank of Scotland Eurodollar Time Deposit
1.060% 04/02/2004 14,662 14,662
Bank of the West Eurodollar Time Deposit
1.075% 01/14/2004 14,662 14,662
Barclays Eurodollar Time Deposit
1.090% 03/05/2004 48,872 48,872
BNP Paribas Eurodollar Time Deposit
0.970% 01/07/2004 19,549 19,549
Canadian Imperial Bank of Commerce Bank Note
0.990% 05/18/2004 97,744 97,744
Citigroup Eurodollar Time Deposit
1.080% 01/05/2004 9,774 9,774
Citigroup Eurodollar Time Deposit
1.090% 03/04/2004 39,098 39,098
Citigroup Eurodollar Time Deposit
1.100% 01/22/2004 9,774 9,774
Credit Agricole Indosuez Eurodollar Time Deposit
1.080% 01/06/2004 100,677 100,677
Dreyfus Cash Management Plus, Inc.
Money Market Fund 53,759 53,759
Fannie Mae Discount Note 1.062% 01/02/2004 29,323 29,323
Fleet National Bank Bank Note 1.000% 01/21/2004 48,872 48,872
Freddie Mac Discount Note 1.062% 01/27/2004 39,017 39,017
General Electric Capital Corp. 1.092% 01/05/2004 48,783 48,783
Goldman Sachs Financial Square Prime Obligations
Money Market Fund 19,549 19,549
Harris Trust & Savings Bank
Eurodollar Time Deposit 1.050% 01/29/2004 $ 10,752 $ 10,752
Merrill Lynch Premier Institutional
Money Market Fund 67,249 67,249
Merrimac Money Market Fund 162,256 162,256
Morgan Stanley Dean Witter & Co.
1.080% 01/29/2004 50,827 50,827
National Bank of Commerce Bank Note
1.120% 05/19/2004 24,436 24,436
Royal Bank of Canada Eurodollar Time Deposit
1.050% 02/27/2004 24,436 24,436
Royal Bank of Scotland Eurodollar Time Deposit
1.080% 01/09/2004 19,549 19,549
Royal Bank of Scotland Eurodollar Time Deposit
1.080% 01/15/2004 48,872 48,872
Royal Bank of Scotland Eurodollar Time Deposit
1.090% 03/03/2004 24,436 24,436
Southtrust Bank Eurodollar Time Deposit
1.090% 02/17/2004 29,323 29,323
Svenska Handlesbanken Eurodollar Time Deposit
1.080% 02/04/2004 24,436 24,436
Svenska Handlesbanken Eurodollar Time Deposit
1.085% 01/15/2004 24,436 24,436
Svenska Handlesbanken Eurodollar Time Deposit
1.090% 02/24/2004 48,872 48,872
Toronto Dominion Bank Eurodollar Time Deposit
1.100% 01/08/2004 9,774 9,774
Wells Fargo Eurodollar Time Deposit
1.070% 01/20/2004 117,293 117,293
-------------
1,362,960
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
44
<Page>
DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
REPURCHASE AGREEMENT -- 2.0%
Investors Bank & Trust Company
Repurchase Agreement, dated 12/31/2003, 0.72%,
due 01/02/2004(a) $ 430,182 $ 430,182
TOTAL SHORT-TERM INVESTMENTS (AT AMORTIZED COST) 1,793,142
-------------
TOTAL INVESTMENTS -- 105.6%
(COST $21,520,195)*** 22,662,233
OTHER ASSETS/ (LIABILITIES) (5.6%) (1,202,016)
-------------
NET ASSETS 100.0% $ 21,460,217
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
ADR - American Depository Receipt.
* Non-income producing security.
** Represents investments of security lending collateral. (NOTE 2).
*** Aggregate cost for Federal tax purposes. (NOTE 7).
~ This security is valued in good faith under procedures established by the
board of directors.
(a) Maturity value of $430,199. Collateralized by U.S. Government Agency
obligation with a rate of 1.763%, maturity date of 11/15/2032, and an
aggregate market value, including accrued interest, of $452,434.
The remainder of this page is intentionally left blank.
The accompanying notes are an integral part of the financial statements.
45
<Page>
MML GROWTH EQUITY FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $19,727,053) (NOTE 2) $ 20,869,091
Short-term investments, at amortized cost (NOTE 2) 1,793,142
-------------
Total Investments (including securities on loan with market values of $1,304,924) 22,662,233
Cash 3,745
Receivables from:
Investments sold 552,975
Investment adviser (NOTE 3) 5,857
Fund shares sold 4,197
Interest and dividends 13,163
Foreign taxes withheld 338
-------------
Total assets 23,242,508
-------------
LIABILITIES:
Payables for:
Investments purchased 375,031
Fund shares repurchased 1,507
Securities on loan (NOTE 2) 1,362,960
Directors' fees and expenses (NOTE 3) 3,634
Affiliates (NOTE 3):
Investment management fees 15,099
Accrued expense and other liabilities 24,060
-------------
Total liabilities 1,782,291
-------------
NET ASSETS $ 21,460,217
=============
NET ASSETS CONSIST OF:
Paid-in capital $ 45,850,291
Distributions in excess of net investment income (3,633)
Accumulated net realized loss on investments and foreign currency translations (25,528,503)
Net unrealized appreciation on investments, foreign currency and other assets and liabilities 1,142,062
-------------
$ 21,460,217
=============
SHARES OUTSTANDING: 3,185,044
=============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 6.74
=============
</Table>
The accompanying notes are an integral part of the financial statements.
46
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends (net of withholding tax of $810) $ 157,469
Interest (including securities lending income of $1,274) 4,849
-----------
Total investment income 162,318
-----------
EXPENSES:
Investment management fees (NOTE 3) 147,440
Custody fees 53,924
Audit and legal fees 19,373
Trustee reporting 13,446
Directors' fees (NOTE 3) 1,201
Shareholder reporting fees 923
-----------
Total expenses 236,307
Expenses waived (NOTE 3) (68,595)
Fees paid indirectly (NOTE 3) (8,366)
-----------
Net expenses 159,346
-----------
NET INVESTMENT INCOME 2,972
-----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
Investment transactions 2,295,738
Foreign currency transactions 245
-----------
Net realized gain 2,295,983
-----------
Net change in unrealized appreciation (depreciation) on:
Investments 1,464,944
Translation of assets and liabilities in foreign currencies (373)
-----------
Net unrealized gain 1,464,571
-----------
NET REALIZED AND UNREALIZED GAIN 3,760,554
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,763,526
===========
</Table>
The accompanying notes are an integral part of the financial statements.
47
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $ 2,972 $ (28,905)
Net realized gain (loss) on investment transactions
and foreign currency transactions 2,295,983 (6,917,966)
Net change in unrealized appreciation (depreciation) on investments
and translation of assets and liabilities in foreign currencies 1,464,571 (2,868,418)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,763,526 (9,815,289)
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income (4,061) -
NET FUND SHARE TRANSACTIONS (NOTE 5) 1,132,622 (18,361,105)
------------ -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,892,087 (28,176,394)
NET ASSETS:
Beginning of year 16,568,130 44,744,524
------------ -------------
End of year (including distributions in excess of net investment income of
$3,633 and accumulated net investment loss of $3,189, respectively) $ 21,460,217 $ 16,568,130
============ =============
</Table>
The accompanying notes are an integral part of the financial statements.
48
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01 12/31/00 12/31/99+
---------- ---------- ---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.48 $ 7.59 $ 10.15 $ 13.01 $ 10.00
-------- -------- -------- -------- --------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.00~ (0.01) (0.00)~ (0.01) (0.00)~
Net realized and unrealized gain (loss) on investments 1.26 (2.10) (2.56) (0.77) 3.01
-------- -------- -------- -------- --------
Total income (loss) from investment operations 1.26 (2.11) (2.56) (0.78) 3.01
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.00)~~ - (0.00)~~ (0.00)~~ -
Tax return of capital - - - (0.00)~~ -
From net realized gains - - - (2.08) -
-------- -------- -------- -------- --------
Total distributions (0.00) - (0.00) (2.08) -
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 6.74 $ 5.48 $ 7.59 $ 10.15 $ 13.01
======== ======== ======== ======== ========
TOTAL RETURN(a) 23.02% (27.80)% (25.20)% (6.54)% 30.10%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 21,460 $ 16,568 $ 44,745 $ 53,081 $ 39,487
Ratio of expenses to average daily net assets:
Before expense waiver 1.28% 1.08% 0.99% 1.08% 0.77%**
After expense waiver# 0.86%(b) 0.89%(b) 0.91% 0.91% 0.61%**
Net investment income (loss) to average daily net assets 0.02% (0.10)% (0.06)% (0.10)% (0.04)%**
Portfolio turnover rate 271% 219% 292% 271% 106%**
</Table>
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
~ NET INVESTMENT INCOME (LOSS) IS LESS THAN $0.01 PER SHARE.
~~ DISTRIBUTIONS FROM NET INVESTMENT INCOME AND TAX RETURN OF CAPITAL ARE LESS
THAN $0.01 PER SHARE.
+ FOR THE PERIOD FROM MAY 3, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1999
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE CERTAIN
FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 3, 1999 THROUGH DECEMBER
31, 1999 AND THE YEARS ENDING DECEMBER 31, 2000, 2001, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
(b) THE FUND HAS ENTERED INTO AN AGREEMENT WITH CERTAIN BROKERS TO REBATE A
PORTION OF BROKERAGE COMMISSIONS. THE RELATED COMMISSIONS ARE USED TO
REDUCE OPERATING EXPENSES OF THE FUND.
The accompanying notes are an integral part of the financial statements.
49
<Page>
MML OTC 100 FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML growth of capital through performance that closely
OTC 100 FUND? tracks that of the NASDAQ 100 Index by investing at
least 80% of its assets in a portfolio of equity
securities mirroring the sector and stock weightings of
the Index.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM IN 2003? shares returned 48.62%, nearly in line with the 49.12%
return of the NASDAQ 100 Index.
The NASDAQ 100 Index represents 100 of the largest
non-financial U.S. and non-U.S. companies listed on the
National Tier of the NASDAQ stock market. It is a
modified capitalization-weighted index that is designed
to limit domination by a few large stocks while
generally retaining the ranking of companies by
capitalization.
WHAT WAS THE Improving fundamentals throughout the year provided an
INVESTMENT BACKDROP attractive backdrop for equity market advances. The
DURING THE PERIOD? NASDAQ Index was up 8.6% for the third quarter, led by
the continued strength in the technology sector. For
the same reason, during the fourth quarter, the NASDAQ
Index advanced 13.4%. At year-end, technology
represented just over 60% of the Index.
Throughout 2003, the economic landscape showed signs of
improvement, as evidenced in the continual upward
revisions to the all-important Gross Domestic Product
(GDP) figures. Most recently, GDP growth has been
estimated at an annualized rate of 8.2%. During the
second half of the year, investment by corporate
America began picking up in earnest. While business
spending was well in the single-digit category during
the first half of the year, the third and fourth
quarters' spending levels increased sharply to mid-teen
levels, with significant increases experienced in
technology spending. The year concluded with robust
corporate earnings, as evidenced by the near-record
estimate of the S&P 500's 2004 operating earnings at
$62 per share. The equity markets continued to enjoy
the Federal Reserve's stimulative stance on monetary
policy throughout the year.
WHAT FACTORS During the third quarter, sector performance was led by
CONTRIBUTED TO THE information technology and consumer discretionary. The
FUND'S PERFORMANCE? worst-performing sector during the period was energy.
In the fourth quarter, sector performance was led by
information technology and telecommunications services.
The greatest detractor during the period was health
care. Telecommunication services was the sector leader
for the year, advancing 143%; information technology
was second, with an impressive 52.2% return.
WHAT IS YOUR OUTLOOK? Improvement in business performance this cycle,
especially corporate profitability, should support
further, if more modest, gains in 2004. A stronger
cyclical recovery and a potential higher secular growth
rate are not fully discounted in equity markets. The
state of the business cycle, the end of the bear
market, and the economy's remarkable resilience and
productivity argue that 2004 will be a favorable year
for equity investors. Unquestionably, risk exists -
particularly, exogenous threats like terrorism - but
markets adjust to these risks and take them into
account. In such instances, they do not ordinarily
cause volatility; only when unforeseen events happen
does the market respond, in either a positive or
negative direction.
50
<Page>
MML OTC 100 FUND
LARGEST STOCK HOLDINGS (12/31/03)
Microsoft Corp.
Intel Corp.
Cisco Systems, Inc.
Qualcomm, Inc.
Nextel Communications, Inc. Cl. A
Amgen, Inc.
Dell, Inc.
Comcast Corp. Cl. A
eBay, Inc.
Oracle Corp.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML OTC 100 Fund and the NASDAQ 100 Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/1/00 - 12/31/03
MML OTC 100 Fund 48.62% -23.25%
- ------------------------------------------------------------
NASDAQ 100 Index 49.12% -22.70%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML OTC 100 FUND NASDAQ 100 INDEX
5/1/00 $ 10,000 $ 10,000
12/00 $ 6,110 $ 6,207
12/01 $ 4,087 $ 4,180
12/02 $ 2,547 $ 2,609
12/03 $ 3,785 $ 3,890
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE NASDAQ 100 INDEX IS UNMANAGED AND DOES NOT INCUR
EXPENSES, AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN
REFLECTS CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY
PRODUCT CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED
IF THEY REFLECTED THESE CHARGES.
51
<Page>
MML OTC 100 FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
EQUITIES -- 98.1%
ADVERTISING -- 0.2%
Lamar Advertising Co.* 830 $ 30,976
-------------
AIR TRANSPORTATION -- 0.2%
Ryanair Holdings PLC Sponsored ADR (Ireland)* 605 30,637
-------------
APPAREL, TEXTILES & SHOES -- 0.3%
Ross Stores, Inc. 1,485 39,249
-------------
AUTOMOTIVE & PARTS -- 0.9%
Paccar, Inc. 1,302 110,826
-------------
BROADCASTING, PUBLISHING & PRINTING -- 4.6%
Comcast Corp. Cl. A* 9,461 310,983
InterActive Corp.* 7,356 249,589
-------------
560,572
-------------
COMMERCIAL SERVICES -- 6.0%
Apollo Group, Inc. Cl. A* 1,776 120,768
Career Education Corp.* 1,014 40,631
Cintas Corp. 2,040 102,265
eBay, Inc.* 4,798 309,903
Fastenal Co. 722 36,057
Paychex, Inc. 3,562 132,506
-------------
742,130
-------------
COMMUNICATIONS -- 10.0%
EchoStar Communications Corp. Cl. A* 2,530 86,020
Juniper Networks, Inc.* 2,548 47,597
Network Appliance, Inc.* 3,593 73,764
Nextel Communications, Inc. Cl. A* 13,644 382,851
PanAmSat Corp.* 2,015 43,443
Qualcomm, Inc. 9,609 518,213
Research In Motion Limited* 786 52,528
Tellabs, Inc.* 2,368 19,962
-------------
1,224,378
-------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 0.9%
Sun Microsystems, Inc.* 14,152 63,543
Synopsys, Inc.* 1,431 48,311
-------------
111,854
-------------
COMPUTER PROGRAMMING SERVICES -- 0.7%
Mercury Interactive Corp.* 955 46,451
VeriSign, Inc.* 2,268 36,968
-------------
83,419
-------------
COMPUTERS & INFORMATION -- 9.4%
Apple Computer, Inc.* 5,094 108,859
CDW Corp. 862 $ 49,789
Cisco Systems, Inc.* 24,561 596,587
Comverse Technology, Inc.* 1,989 34,987
Dell, Inc.* 9,392 318,952
Sandisk Corp.* 727 44,449
-------------
1,153,623
-------------
CONTAINERS -- 0.4%
Smurfit-Stone Container Corp. 2,416 44,865
-------------
DATA PROCESSING & PREPARATION -- 0.8%
Fiserv, Inc.* 2,414 95,377
-------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 19.2%
Altera Corp.* 5,305 120,424
American Power Conversion Corp. 1,987 48,582
ATI Technologies, Inc.* 2,390 36,137
Broadcom Corp. Cl. A* 2,137 72,850
Flextronics International Limited* 5,699 84,573
Garmin Limited 998 54,371
Gentex Corp. 795 35,107
Intel Corp. 22,778 733,452
Intersil Corp. Cl. A 1,397 34,716
JDS Uniphase Corp.* 16,177 59,046
Kla-Tencor Corp.* 2,350 137,875
Linear Technology Corp. 4,158 174,927
Marvell Technology Group Limited* 1,205 45,706
Maxim Integrated Products, Inc. 4,585 228,333
Microchip Technology, Inc. 1,717 57,279
Molex, Inc. 982 34,262
Novellus Systems, Inc.* 1,546 65,009
Nvidia Corp.* 1,746 40,595
Qlogic Corp.* 959 49,484
Sanmina-SCI Corp.* 5,499 69,342
Xilinx, Inc.* 4,523 175,221
-------------
2,357,291
-------------
ENERGY -- 0.2%
Patterson-UTI Energy, Inc.* 832 27,390
-------------
FOODS -- 1.5%
Starbucks Corp.* 5,451 180,210
-------------
HEALTHCARE -- 1.1%
Express Scripts, Inc.* 698 46,368
First Health Group Corp.* 976 18,993
Lincare Holdings, Inc.* 945 28,378
Patterson Dental Co.* 652 $ 41,832
-------------
135,571
-------------
INFORMATION RETRIEVAL SERVICES -- 1.2%
Yahoo!, Inc.* 3,150 142,286
-------------
INTERNET CONTENT -- 0.4%
BEA Systems, Inc.* 3,725 45,818
-------------
MANUFACTURING -- 1.9%
Applied Materials, Inc.* 8,565 192,284
Lam Research Corp.* 1,342 43,347
-------------
235,631
-------------
MEDICAL SUPPLIES -- 1.3%
Biomet, Inc. 3,428 124,814
Dentsply International, Inc. 757 34,194
-------------
159,008
-------------
MISCELLANEOUS -- 2.2%
Nasdaq-100 Index Tracking Stock 7,537 274,498
-------------
PHARMACEUTICALS -- 10.4%
Amgen, Inc.* 5,987 369,997
Biogen Idec, Inc.* 3,771 138,697
Cephalon, Inc.* 507 24,544
Chiron Corp.* 2,614 148,972
Genzyme Corp.* 2,798 138,053
Gilead Sciences, Inc.* 1,986 115,466
Henry Schein, Inc.* 404 27,302
Invitrogen Corp.* 478 33,460
Medimmune, Inc.* 2,638 67,005
Millennium Pharmaceuticals, Inc.* 3,290 61,424
Sigma-Aldrich Corp. 663 37,910
Teva Pharmaceutical Sponsored ADR (Israel) 1,916 108,656
-------------
1,271,486
-------------
PREPACKAGED SOFTWARE -- 18.6%
Adobe Systems, Inc. 2,284 89,761
Check Point Software Technologies Limited* 2,419 40,688
Citrix Systems, Inc.* 1,942 41,190
Compuware Corp.* 2,359 14,248
Electronic Arts, Inc.* 2,991 142,910
Intuit, Inc.* 2,490 131,746
Microsoft Corp. 37,058 1,020,577
Oracle Corp.* 21,703 286,480
Peoplesoft, Inc.* 5,276 120,293
Pixar, Inc.* 554 38,387
Siebel Systems, Inc.* 5,784 80,224
</Table>
The accompanying notes are an integral part of the financial statements.
52
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
Symantec Corp.* 3,208 $ 111,157
Veritas Software Corp.* 4,352 161,720
-------------
2,279,381
-------------
RETAIL -- 3.4%
Bed Bath & Beyond, Inc.* 3,966 171,926
Costco Wholesale Corp.* 2,401 89,269
Dollar Tree Stores, Inc.* 1,102 33,126
Petsmart, Inc. 1,409 33,534
Staples, Inc.* 3,312 90,418
-------------
418,273
-------------
RETAIL - GROCERY -- 0.3%
Whole Foods Market, Inc.* 587 39,405
-------------
RETAIL - INTERNET -- 1.1%
Amazon.com, Inc.* 2,652 139,601
-------------
TELEPHONE UTILITIES -- 0.3%
Level 3 Communications, Inc.* 6,659 37,956
-------------
TRANSPORTATION -- 0.6%
Expeditors International of Washington, Inc. 1,026 38,639
Robinson (C.H.) Worldwide, Inc. 831 31,503
-------------
70,142
-------------
TOTAL EQUITIES
(COST $9,892,457) 12,041,853
-------------
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
SHORT-TERM INVESTMENTS -- 2.4%
REPURCHASE AGREEMENT -- 1.9%
Investors Bank & Trust Company Repurchase
Agreement, dated 12/31/2003, 0.72%,
due 01/02/2004(a) $ 232,427 $ 232,427
-------------
U.S. TREASURY BILLS -- 0.5%
U.S. Treasury Bill** 0.875% 01/22/2004 10,000 9,995
U.S. Treasury Bill** 0.892% 01/22/2004 30,000 29,984
U.S. Treasury Bill** 0.905% 01/22/2004 20,000 19,989
-------------
59,968
-------------
TOTAL SHORT-TERM INVESTMENTS
(AT AMORTIZED COST) 292,395
-------------
TOTAL INVESTMENTS -- 100.5%
(COST $10,184,852)*** 12,334,248
OTHER ASSETS/(LIABILITIES) -- (0.5%) (59,996)
-------------
NET ASSETS -- 100.0% $ 12,274,252
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
ADR - American Depository Receipt.
* Non-income producing security.
** This security is held as collateral for open futures contracts. (NOTE 2).
*** Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $232,436. Collateralized by U.S. Government Agency
obligation with a rate of 3.875%, maturity date of 07/25/2025 and an
aggregate market value, including accrued interest, of $244,048.
The accompanying notes are an integral part of the financial statements.
53
<Page>
MML OTC 100 FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $9,892,457) (NOTE 2) $ 12,041,853
Short-term investments, at amortized cost (NOTE 2) 292,395
-------------
Total Investments 12,334,248
Receivables from:
Investment adviser (NOTE 3) 3,806
Fund shares sold 3,419
Interest and dividends 1,877
-------------
Total assets 12,343,350
-------------
LIABILITIES:
Payables for:
Investments purchased 27,112
Fund shares repurchased 12,178
Variation margin on open futures contracts (NOTE 2) 453
Directors' fees and expenses (NOTE 3) 1,978
Affiliates (NOTE 3):
Investment management fees 4,761
Accrued expense and other liabilities 22,616
-------------
Total liabilities 69,098
-------------
NET ASSETS $ 12,274,252
=============
NET ASSETS CONSIST OF:
Paid-in capital $ 21,130,549
Accumulated net investment loss (1,847)
Accumulated net realized loss on investments and futures contracts (11,010,292)
Net unrealized appreciation on investments and futures contracts 2,155,842
-------------
$ 12,274,252
=============
SHARES OUTSTANDING: 3,260,682
=============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 3.76
=============
</Table>
The accompanying notes are an integral part of the financial statements.
54
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends (net of withholding tax of $94) $ 17,701
Interest 890
------------
Total investment income 18,591
------------
EXPENSES:
Investment management fees (NOTE 3) 33,539
Custody fees 23,426
Audit and legal fees 19,970
Trustee reporting 13,446
Directors' fees (NOTE 3) 466
Shareholder reporting fees 334
------------
Total expenses 91,181
Expenses waived (NOTE 3) (49,444)
------------
Net expenses 41,737
------------
NET INVESTMENT LOSS (23,146)
------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment transactions (471,292)
Closed futures contracts 78,465
------------
Net realized loss (392,827)
------------
Net change in unrealized appreciation (depreciation) on:
Investments 3,320,339
Open futures contracts 12,133
------------
Net unrealized gain 3,332,472
------------
NET REALIZED AND UNREALIZED GAIN 2,939,645
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,916,499
============
</Table>
The accompanying notes are an integral part of the financial statements.
55
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss $ (23,146) $ (33,055)
Net realized loss on investment transactions and futures contracts (392,827) (5,972,150)
Net change in unrealized appreciation (depreciation) on investments
and futures contracts 3,332,472 2,431,861
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 2,916,499 (3,573,344)
------------ ------------
NET FUND SHARE TRANSACTIONS (NOTE 5) 5,261,985 (3,079,761)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,178,484 (6,653,105)
NET ASSETS:
Beginning of year 4,095,768 10,748,873
------------ ------------
End of year (including accumulated net investment loss of
$1,847 and $1,680, respectively) $ 12,274,252 $ 4,095,768
============ ============
</Table>
The accompanying notes are an integral part of the financial statements.
56
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01 12/31/00+
---------- ---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 2.53 $ 4.06 $ 6.07 $ 10.00
-------- -------- -------- ---------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (0.01) (0.02) (0.02)*** (0.02)***
Net realized and unrealized gain (loss) on investments 1.24 (1.51) (1.99) (3.87)
-------- -------- -------- ---------
Total income (loss) from investment operations 1.23 (1.53) (2.01) (3.89)
-------- -------- -------- ---------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net realized gains - - (0.00)~ (0.04)
-------- -------- -------- ---------
NET ASSET VALUE, END OF PERIOD $ 3.76 $ 2.53 $ 4.06 $ 6.07
======== ======== ======== =========
TOTAL RETURN(a) 48.62% (37.68)% (33.11)% (38.90)%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 12,274 $ 4,096 $ 10,749 $ 8,032
Ratio of expenses to average daily net assets:
Before expense waiver 1.22% 1.08% 0.71% 0.88%*
After expense waiver# 0.56% 0.56% 0.56% 0.56%*
Net investment loss to average daily net assets (0.31)% (0.45)% (0.40)% (0.36)%*
Portfolio turnover rate 48% 64% 67% 51%
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
~ DISTRIBUTIONS FROM NET REALIZED GAINS IS LESS THAN $0.01 PER SHARE.
+ FOR THE PERIOD FROM MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2000.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE CERTAIN
FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2000 THROUGH DECEMBER
31, 2000 AND THE YEARS ENDED DECEMBER 31, 2001, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
57
<Page>
MML SMALL CAP EQUITY FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML growth of capital and income by investing primarily in
SMALL CAP EQUITY FUND? a diversified portfolio of equity securities of smaller
companies (those with market capitalizations consistent
with companies in the Russell 2000 Index), using a
value-oriented investment strategy.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 31.29%, trailing the 47.26% return of
the Russell 2000 Index, a broadly based, unmanaged
index of 2000 small capitalization common stocks.
WHAT WAS THE The U.S. stock market rallied during the third quarter
INVESTMENT BACKGROUND on increased optimism about the outlook for the economy
DURING THE PERIOD? and corporate earnings. Following a trend established
earlier in the year, investors continued to embrace
market risk, small stocks and growth investing. Both
the market surge and the aforementioned investor
sentiment continued into the fourth quarter. For the
full year, small-cap stocks outperformed their
large-cap counterparts by approximately 20%. Although
exposure to equities during the year added value
irrespective of asset class or style segmentation,
investments in high-risk stocks with exposure to the
economic cycle generated the highest returns in all
investment styles, most notably the small-cap space.
WHAT FACTORS The fourth quarter of 2003 and the full year were
CONTRIBUTED TO THE challenging for the portfolio. Our investment approach
FUND'S PERFORMANCE? emphasizes stock selection to identify which companies
possess the appropriate combination of compelling
fundamentals and sustainable competitive advantages to
position them for above-average growth. These process
characteristics were not rewarded in the 2003 equity
market rebound, which favored areas of the market that
exhibited the weakest fundamentals and highest risk
profiles. Despite these market realities, the portfolio
was able to capture a portion of the strong sentiment
for small-cap stocks and close the year with extremely
strong absolute results.
Stock selection in the consumer discretionary and
technology sectors detracted from results during much
of 2003, but performance for both sectors picked up in
the fourth quarter, as the portfolio realized gains
from semiconductor companies in technology and media
companies in consumer discretionary. The consumer
discretionary sector is an area in which the portfolio
typically holds an underweight position due to the
inability to identify sustainable competitive
advantages among the traditional retail companies that
comprise a large part of this sector. This underweight
position and the relative underperformance of the
portfolio's consumer holdings hampered the Fund's 2003
results.
On a positive note, the portfolio realized strong gains
in both the third and fourth quarters from health care
holdings. Additionally, financial services companies
experienced a modest correction during the fourth
quarter, but generally were strong performers in 2003.
WHAT IS YOUR OUTLOOK? The equity market currently has tremendous momentum and
until it is impacted by another force, such as rising
bond yields, it will likely remain on its current path.
However, it should be noted that this is currently the
consensus forecast, and therefore it is likely already
priced into the market. In 2004, interest rates could
be the big story. If they do not go up much, 2004 could
be a big up year for equities. If they rise sharply,
the opposite could be true.
58
<Page>
MML SMALL CAP EQUITY FUND
LARGEST STOCK HOLDINGS (12/31/03)
Carlisle Companies, Inc.
Arbitron, Inc.
Cognex Corp.
IPC Holdings Limited
Teleflex, Inc.
Roper Industries, Inc.
Jefferies Group, Inc.
Webster Financial Corp.
Technitrol, Inc.
Eaton Vance Corp.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Small Cap Equity Fund and the Russell 2000 Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
FIVE YEAR SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL AVERAGE ANNUAL
1/1/03 - 12/31/03 1/1/99 - 12/31/03 6/1/98 - 12/31/03
MML Small Cap
Equity Fund 31.29% 6.11% 2.48%
- ---------------------------------------------------------------------------------------
Russell 2000 Index 47.26% 7.13% 5.00%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML SMALL CAP EQUITY FUND RUSSELL 2000 INDEX
6/1/98 $ 10,000 $ 10,000
12/1/98 $ 8,522 $ 9,307
12/1/99 $ 8,433 $ 11,286
12/1/00 $ 9,583 $ 10,945
12/1/01 $ 9,904 $ 11,217
12/2/02 $ 8,732 $ 8,919
12/3/03 $ 11,464 $ 13,134
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE RUSSELL 2000 INDEX IS UNMANAGED AND DOES NOT INCUR
EXPENSES, AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN
REFLECTS CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY
PRODUCT CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED
IF THEY REFLECTED THESE CHARGES.
59
<Page>
MML SMALL CAP EQUITY FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- ---------------
EQUITIES -- 90.9%
AIR TRANSPORTATION -- 1.1%
SkyWest, Inc. 53,100 $ 962,172
---------------
BANKING, SAVINGS & LOANS -- 7.2%
First Niagara Financial
Group, Inc. 56,300 839,433
First Republic Bank 35,600 1,274,480
First State Bancorp 11,300 392,675
Pacific Capital Bancorp 47,266 1,740,334
Webster Financial Corp. 41,980 1,925,203
---------------
6,172,125
---------------
BROADCASTING, PUBLISHING & PRINTING -- 2.9%
Gray Television, Inc. 87,300 1,319,976
Lin TV Corp. Cl. A* 46,200 1,192,422
---------------
2,512,398
---------------
BUILDING MATERIALS & CONSTRUCTION -- 1.5%
ElkCorp 49,100 1,310,970
---------------
COMMERCIAL SERVICES -- 6.4%
ADVO, Inc. 57,900 1,838,904
Arbitron, Inc.* 56,800 2,369,696
National Processing, Inc.* 53,200 1,252,860
---------------
5,461,460
---------------
COMMUNICATIONS -- 1.4%
CT Communications, Inc. 41,900 565,650
Inet Technologies, Inc.* 48,600 583,200
---------------
1,148,850
---------------
COMPUTER RELATED SERVICES -- 1.6%
eSpeed, Inc. Cl. A* 59,800 1,399,918
---------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 14.2%
Baldor Electric Co. 37,300 852,305
Cognex Corp. 82,300 2,324,152
Methode Electronics,
Inc. Cl. A 27,700 338,771
Micrel, Inc.* 115,900 1,805,722
Mykrolis Corp.* 94,800 1,524,384
Newport Corp.* 43,100 712,443
Rogers Corp.* 14,200 626,504
Technitrol, Inc.* 92,200 1,912,228
Teleflex, Inc. 42,900 2,073,357
---------------
12,169,866
---------------
ENERGY -- 5.4%
Rowan Companies, Inc.* 64,500 1,494,465
Tidewater, Inc. 23,900 714,132
Unit Corp.* 62,500 1,471,875
W-H Energy Services, Inc.* 60,500 980,100
---------------
4,660,572
---------------
FINANCIAL SERVICES -- 8.9%
Chittenden Corp. 51,100 $ 1,719,004
Eaton Vance Corp. 51,900 1,901,616
Fidelity Bankshares, Inc. 39,600 1,243,440
Jefferies Group, Inc. 60,000 1,981,200
Stewart (W.P.) & Co. Limited 38,600 831,058
---------------
7,676,318
---------------
FOODS -- 0.7%
Performance Food
Group Co.* 16,300 589,571
---------------
HOME CONSTRUCTION, FURNISHINGS &
APPLIANCES -- 1.5%
Fossil, Inc.* 17,600 492,976
Miller (Herman), Inc. 33,100 803,337
---------------
1,296,313
---------------
INDUSTRIAL - DIVERSIFIED -- 3.7%
Carlisle Companies, Inc. 51,700 3,146,462
---------------
INSURANCE -- 8.6%
Aspen Insurance
Holdings Limited* 2,500 62,025
The Commerce Group, Inc. 42,600 1,682,700
HCC Insurance Holdings, Inc. 38,500 1,224,300
Infinity Property &
Casualty Corp. 43,000 1,421,150
IPC Holdings Limited 55,100 2,145,594
Philadelphia Consolidated
Holding Corp.* 17,600 859,408
---------------
7,395,177
---------------
MACHINERY & COMPONENTS -- 10.7%
Actuant Corp. Cl. A* 24,200 876,040
Hardinge, Inc. 60,450 700,011
Helix Technology Corp. 91,000 1,872,780
IDEX Corp. 30,200 1,256,018
Kaydon Corp. 61,200 1,581,408
Regal-Beloit Corp. 39,500 869,000
Roper Industries, Inc. 41,400 2,039,364
---------------
9,194,621
---------------
MEDICAL SUPPLIES -- 4.1%
Coherent, Inc.* 77,700 1,849,260
Dionex Corp.* 36,200 1,665,924
---------------
3,515,184
---------------
PHARMACEUTICALS -- 4.2%
Pharmaceutical
Resources, Inc.* 11,300 736,195
Taro Pharmaceutical
Industries Limited* 22,700 1,464,150
Valeant Pharmaceuticals
International 56,800 1,428,520
---------------
3,628,865
---------------
RESTAURANTS -- 1.1%
RARE Hospitality
International, Inc.* 39,500 $ 965,380
---------------
RETAIL -- 1.3%
Michaels Stores, Inc. 25,400 1,122,680
---------------
TRANSPORTATION -- 4.4%
Heartland Express, Inc. 67,810 1,640,324
Landstar System, Inc.* 27,600 1,049,904
Quality Distribution, Inc.* 9,700 189,635
Robinson (C.H.)
Worldwide, Inc. 22,800 864,348
---------------
3,744,211
---------------
TOTAL EQUITIES
(COST $62,544,860) 78,073,113
---------------
<Caption>
PRINCIPAL
AMOUNT
-------------
SHORT-TERM INVESTMENTS -- 11.8%
CASH EQUIVALENTS -- 3.3%**
Bank of Montreal
Eurodollar Time Deposit
1.060% 01/15/2004 $ 7,734 7,734
Bank of Montreal
Eurodollar Time Deposit
1.060% 02/17/2004 40,866 40,866
Bank of Nova Scotia
Eurodollar Time Deposit
1.080% 03/03/2004 122,598 122,598
Bank of Scotland
Eurodollar Time Deposit
1.060% 04/02/2004 30,649 30,649
Bank of the West
Eurodollar Time Deposit
1.075% 01/14/2004 30,649 30,649
Barclays
Eurodollar Time Deposit
1.090% 03/05/2004 102,165 102,165
BNP Paribas
Eurodollar Time Deposit
0.970% 01/07/2004 40,866 40,866
Canadian Imperial
Bank of Commerce
Bank Note
0.990% 05/18/2004 204,330 204,330
Citigroup
Eurodollar Time Deposit
1.080% 01/05/2004 20,433 20,433
</Table>
The accompanying notes are an integral part of the financial statements.
60
<Page>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ---------------
Citigroup
Eurodollar Time Deposit
1.090% 03/04/2004 $ 81,732 $ 81,732
Citigroup
Eurodollar Time Deposit
1.100% 01/22/2004 20,433 20,433
Credit Agricole Indosuez
Eurodollar Time Deposit
1.080% 01/06/2004 210,460 210,460
Dreyfus Cash
Management Plus, Inc.
Money Market Fund 112,381 112,381
Fannie Mae Discount Note
1.062% 01/02/2004 61,299 61,299
Fleet National Bank
Bank Note
1.000% 01/21/2004 102,165 102,165
Freddie Mac Discount Note
1.062% 01/27/2004 81,563 81,563
General Electric
Capital Corp.
1.092% 01/05/2004 101,979 101,979
Goldman Sachs
Financial Square
Prime Obligations
Money Market Fund 40,866 40,866
Harris Trust &
Savings Bank
Eurodollar Time Deposit
1.050% 01/29/2004 22,476 22,476
Merrill Lynch
Premier Institutional
Money Market Fund 140,581 140,581
Merrimac
Money Market Fund 339,188 339,188
Morgan Stanley
Dean Witter & Co.
1.080% 01/29/2004 106,251 106,251
National Bank of
Commerce Bank Note
1.120% 05/19/2004 51,082 51,082
Royal Bank of Canada
Eurodollar Time Deposit
1.050% 02/27/2004 51,082 51,082
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/09/2004 40,866 40,866
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/15/2004 102,165 102,165
Royal Bank of Scotland
Eurodollar Time Deposit
1.090% 03/03/2004 51,082 51,082
Southtrust Bank
Eurodollar Time Deposit
1.090% 02/17/2004 $ 61,299 $ 61,299
Svenska Handlesbanken
Eurodollar Time Deposit
1.080% 02/04/2004 51,082 51,082
Svenska Handlesbanken
Eurodollar Time Deposit
1.085% 01/15/2004 51,082 51,082
Svenska Handlesbanken
Eurodollar Time Deposit
1.090% 02/24/2004 102,165 102,165
Toronto Dominion Bank
Eurodollar Time Deposit
1.100% 01/08/2004 20,433 20,433
Wells Fargo
Eurodollar Time Deposit
1.070% 01/20/2004 245,198 245,198
---------------
2,849,200
---------------
REPURCHASE AGREEMENT -- 8.5%
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/03, 0.72%,
due 01/02/2004(a) 7,289,605 7,289,605
---------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 10,138,805
---------------
TOTAL INVESTMENTS -- 102.7%
(COST $72,683,665)*** 88,211,918
OTHER ASSETS/
(LIABILITIES) -- (2.7%) (2,307,847)
---------------
NET ASSETS -- 100.0% $ 85,904,071
===============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
* Non-income producing security.
** Represents investments of security lending collateral. (NOTE 2).
*** Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $7,289,897. Collateralized by U.S. Government Agency
obligation with a rate of 2.924%, maturity date of 10/01/2033, and an
aggregate market value, including accrued interest, of $7,654,477.
The accompanying notes are an integral part of the financial statements.
61
<Page>
MML SMALL CAP EQUITY FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $62,544,860) (NOTE 2) $ 78,073,113
Short-term investments, at amortized cost (NOTE 2) 10,138,805
---------------
Total Investments (including securities on loan with market values of $2,729,085) 88,211,918
Cash 743,976
Receivables from:
Investments sold 1,578,954
Fund shares sold 36,405
Interest and dividends 36,988
---------------
Total assets 90,608,241
---------------
LIABILITIES:
Payables for:
Investments purchased 1,745,841
Fund shares repurchased 28,860
Securities on loan (NOTE 2) 2,849,200
Directors' fees and expenses (NOTE 3) 6,223
Affiliates (NOTE 3):
Investment management fees 50,076
Accrued expense and other liabilities 23,970
---------------
Total liabilities 4,704,170
---------------
NET ASSETS $ 85,904,071
===============
NET ASSETS CONSIST OF:
Paid-in capital $ 71,184,111
Distributions in excess of net investment income (5,072)
Accumulated net realized loss on investments (803,221)
---------------
Net unrealized appreciation on investments 15,528,253
---------------
$ 85,904,071
===============
SHARES OUTSTANDINGS: 7,710,033
===============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 11.14
===============
</Table>
The accompanying notes are an integral part of the financial statements.
62
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends $ 633,339
Interest (including securities lending income of $6,285) 23,089
---------------
Total investment income 656,428
---------------
EXPENSES:
Investment management fees (NOTE 3) 457,956
Audit and legal fees 21,343
Custody fees 14,500
Trustee reporting 13,446
Directors' fees (NOTE 3) 4,600
Shareholder reporting fees 3,555
---------------
Total expenses 515,400
Fees paid indirectly (NOTE 3) (294)
---------------
Net expenses 515,106
---------------
NET INVESTMENT INCOME 141,322
---------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions 2,035,667
Net change in unrealized appreciation (depreciation) on investments 17,469,139
---------------
NET REALIZED AND UNREALIZED GAIN 19,504,806
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,646,128
===============
</Table>
The accompanying notes are an integral part of the financial statements.
63
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 141,322 $ 158,664
Net realized gain (loss) on investment transactions 2,035,667 (396,627)
Net change in unrealized appreciation (depreciation) on investments 17,469,139 (8,728,340)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 19,646,128 (8,966,303)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income (142,999) (157,182)
NET FUND SHARE TRANSACTIONS (NOTE 5) 4,892,753 13,536,029
------------- -------------
TOTAL INCREASE IN NET ASSETS 24,395,882 4,412,544
NET ASSETS:
Beginning of year 61,508,189 57,095,645
------------- -------------
End of year (including distributions in excess of net investment
income of $5,072 and undistributed net investment income of
$7,241, respectively) $ 85,904,071 $ 61,508,189
============= =============
</Table>
The accompanying notes are an integral part of the financial statements.
64
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12/31/03 12/31/02 12/31/01 12/31/00 12/31/99
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.50 $ 9.67 $ 9.40 $ 8.34 $ 8.49
---------- ---------- ---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.02 0.05 0.08 0.07
Net realized and unrealized gain (loss) on investments 2.64 (1.17) 0.27 1.06 (0.15)
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment operations 2.66 (1.15) 0.32 1.14 (0.08)
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.02) (0.02) (0.05) (0.08) (0.07)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.14 $ 8.50 $ 9.67 $ 9.40 $ 8.34
========== ========== ========== ========== ==========
TOTAL RETURN(a) 31.29% (11.84)% 3.36% 13.63% (1.04)%
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 85,904 $ 61,508 $ 57,096 $ 42,661 $ 20,137
Ratio of expenses to average daily net assets:
Before expense waiver 0.73% 0.77% 0.69% 0.80% 1.07%
After expense waiver# 0.73%(b) 0.76%(b) N/A 0.76% 0.75%
Net investment income to average daily net assets 0.20% 0.25% 0.59% 1.12% 1.13%
Portfolio turnover rate 43% 44% 97% 65% 41%
</Table>
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND, FOR THE YEARS ENDED DECEMBER 31,
1999, 2000 AND 2002.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
(b) THE FUND HAS ENTERED INTO AN AGREEMENT WITH CERTAIN BROKERS TO REBATE A
PORTION OF BROKERAGE COMMISSIONS. THE REBATED COMMISSIONS ARE USED TO
REDUCE OPERATING EXPENSES OF THE FUND.
The accompanying notes are an integral part of the financial statements.
65
<Page>
MML SMALL COMPANY OPPORTUNITIES FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML growth of capital and income by investing primarily in
SMALL COMPANY a diversified portfolio of equity securities of
OPPORTUNITIES FUND? micro-capitalization companies (those with market
capitalizations at the time of purchase of no more than
50% of the weighted average market capitalization of
the Russell 2000 Index), using a value-oriented
investment strategy.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund
PERFORM DURING 2003? returned 42.25%, lagging the 47.26% return of the
Russell 2000 Index, a broadly based, unmanaged index of
2000 small capitalization common stocks.
WHAT WAS THE The equity market rally that began in March 2003
INVESTMENT BACKGROUND continued in the third quarter, fueled by positive
DURING THE PERIOD? corporate earnings reports and largely favorable
economic indicators. As has been the case for much of
2003, the third quarter saw investors continuing to
embrace market risk, small-cap stocks and growth
investing. This resulted in an environment in which
small caps continued to outperform large caps by a wide
margin and economically sensitive sectors outpaced
sectors associated with low risk in almost all equity
market indexes. This trend continued into the fourth
quarter. For the full year, small-cap stocks led the
U.S. equity market, outperforming large caps by
approximately 20%. Not since 1979 has the market seen
such a wide gap between small- and large-cap equity
performance. Small caps now have outperformed large
caps for five consecutive years, including each of the
final three quarters of 2003.
WHAT FACTORS Those stocks that suffered the most during the bear
CONTRIBUTED TO THE market, such as technology issues, rebounded strongly
FUND'S PERFORMANCE? in 2003. Additionally, economically sensitive sectors
including producer durables and materials & processing,
which were once denounced as "old economy," also had a
very strong run during the year. Conversely, sectors
generally categorized as defensive, such as utilities,
consumer staples and health care, lagged. The key to
outperformance throughout 2003 was to tilt portfolios
toward risk factors such as increased exposure to
economic growth factors, high risk and low price. As
the Fund's investment process does not incorporate
macroeconomic bets such as these, it failed to generate
value during the period.
The fourth quarter of 2003 and the full year were
challenging for the portfolio. Our investment approach
emphasizes stock selection to identify which companies
possess the appropriate combination of compelling
fundamentals and sustainable competitive advantages to
position them for above-average growth. These process
characteristics were not rewarded in the 2003 equity
market rebound, which favored areas of the market that
exhibited the weakest fundamentals and highest risk
profiles. Despite these market realities, the portfolio
was able to capture a portion of the strong sentiment
for small-cap stocks and close the year with extremely
strong absolute results.
Stock selection in the consumer discretionary and
technology sectors detracted from results during much
of 2003, but performance for both sectors picked up in
the fourth quarter, as the portfolio realized gains
from semiconductor companies in technology and media
companies in consumer discretionary. The consumer
discretionary sector is an area in which the portfolio
typically holds an underweight position due to the
inability to identify sustainable competitive
advantages among the traditional retail companies that
comprise a large part of this sector. This underweight
position and the relative underperformance of the
portfolio's consumer holdings hampered the Fund's 2003
results.
On a positive note, the portfolio realized strong gains
in the both the third and fourth quarters from health
care holdings. Additionally, financial services
companies experienced a modest correction during the
fourth quarter, but generally were strong performers in
2003.
WHAT IS YOUR OUTLOOK? We remain cautiously optimistic for continued strength
in equities in 2004. However, we question the long-term
sustainability of the brisk pace of 2003 advances,
particularly among small-cap stocks. Nevertheless, a
continued environment of healthy economics, fiscal
stimulus and geopolitical stability should support
continued stock price appreciation.
66
<Page>
MML SMALL COMPANY OPPORTUNITIES FUND
LARGEST STOCK HOLDINGS (12/31/03)
Actuant Corp. Cl. A
Big 5 Sporting Goods Corp.
Excel Technology, Inc.
Ambassadors Group, Inc.
Sterling Bancorp-NY
Bel Fuse, Inc. Cl. B
Met-Pro Corp.
LSI Industries, Inc.
Moldflow Corp.
Spectrum Control, Inc.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Small Company Opportunities Fund and the Russell
2000 Index
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/1/01 - 12/31/03
MML Small Company
Opportunities Fund 42.25% 15.26%
- -------------------------------------------------------------------------
Russell 2000 Index 47.26% 6.75%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML SMALL COMPANY OPPORTUNITIES FUND RUSSELL 2000 INDEX
5/1/2001 $ 10,000 $ 10,000
12/1/2001 $ 10,969 $ 10,166
12/2/2002 $ 10,273 $ 8,084
12/3/2003 $ 14,614 $ 11,904
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE RUSSELL 2000 INDEX IS UNMANAGED AND DOES NOT INCUR
EXPENSES, AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN
REFLECTS CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY
PRODUCT CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED
IF THEY REFLECTED THESE CHARGES.
67
<Page>
MML SMALL COMPANY OPPORTUNITIES FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- ---------------
EQUITIES -- 91.9%
APPAREL, TEXTILES & SHOES -- 1.2%
Penn Engineering &
Manufacturing Corp. 27,700 $ 527,131
---------------
AUTOMOTIVE & PARTS -- 1.0%
Aftermarket
Technology Corp.* 32,800 450,016
---------------
BANKING, SAVINGS & LOANS -- 8.2%
CFS Bancorp, Inc. 17,600 261,184
Financial Institutions, Inc. 19,900 561,777
First Essex Bancorp, Inc. 6,200 360,468
First Republic Bank* 18,100 647,980
First State Bancorp 20,200 701,950
Franklin Bank Corp. 2,800 53,200
Sterling Bancorp-NY 33,235 947,197
---------------
3,533,756
---------------
BROADCASTING, PUBLISHING & PRINTING -- 1.4%
Saga Communications,
Inc. Cl. A* 32,875 609,174
---------------
BUILDING MATERIALS & CONSTRUCTION -- 1.6%
ElkCorp 25,600 683,520
---------------
CHEMICALS -- 0.9%
Aceto Corp. 9,500 242,630
Hawkins, Inc. 7,200 100,512
Penford Corp. 3,496 48,000
---------------
391,142
---------------
COMMERCIAL SERVICES -- 9.3%
Ambassadors Group, Inc.* 44,500 1,045,305
Charles River
Associates, Inc.* 20,300 649,397
iPayment, Inc.* 20,700 703,800
Rewards Network, Inc. 47,500 506,350
Steiner Leisure Limited* 39,600 566,280
Team, Inc.* 52,800 541,728
---------------
4,012,860
---------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 1.8%
Ansoft Corp.* 59,400 762,102
---------------
COMPUTERS & INFORMATION -- 1.6%
Rimage Corp.* 43,200 683,899
---------------
COSMETICS & PERSONAL CARE -- 1.2%
Inter Parfums, Inc. 23,100 521,829
---------------
ELECTRIC UTILITIES -- 1.4%
Central Vermont Public
Service Corp. 25,800 606,300
---------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 17.5%
Actel Corp.* 31,200 $ 751,920
AZZ, Inc.* 30,200 403,170
Bel Fuse, Inc. Cl. B 28,600 933,218
The Eastern Co. 11,500 179,860
EDO Corp. 25,800 635,970
LSI Industries, Inc. 63,137 852,350
Methode Electronics,
Inc. Cl. A 13,200 161,436
Micro Linear Corp.* 61,700 344,903
Mykrolis Corp.* 50,800 816,864
Nu Horizons
Electronics Corp. 69,600 682,080
Spectrum Control, Inc.* 104,200 829,536
Ultralife Batteries, Inc. 44,100 545,958
Woodhead Industries, Inc. 24,500 414,050
---------------
7,551,315
---------------
ENERGY -- 2.7%
NUI Corp. 30,200 486,824
RPC, Inc. 62,900 691,271
---------------
1,178,095
---------------
FINANCIAL SERVICES -- 1.3%
Boston Private Financial
Holdings, Inc. 21,900 543,996
---------------
FOODS -- 0.7%
Performance Food Group Co.* 8,100 292,977
---------------
HEALTHCARE -- 1.6%
CorVel Corp.* 18,000 676,800
---------------
HEAVY MACHINERY -- 1.0%
TVI Corp. 145,100 420,790
---------------
HOME CONSTRUCTION,
FURNISHINGS & APPLIANCES -- 1.6%
MITY Enterprises, Inc. 16,400 287,000
Palm Harbor Homes, Inc.* 23,700 423,519
---------------
710,519
---------------
INFORMATION RETRIEVAL SERVICES -- 1.1%
Onesource Information
Services, Inc.* 51,600 486,072
---------------
INSURANCE -- 5.2%
Donegal Group, Inc. Cl. A 32,500 715,650
Philadelphia Consolidated
Holding Corp.* 8,400 410,172
Safety Insurance
Group, Inc. 37,800 646,758
United National Group
Limited Cl. A 26,600 $ 470,022
---------------
2,242,602
---------------
MACHINERY & COMPONENTS -- 6.9%
Aaon, Inc.* 22,525 437,210
Actuant Corp. Cl. A* 31,500 1,140,300
Hardinge, Inc. 14,200 164,436
Met-Pro Corp. 53,766 868,321
Robbins & Myers, Inc. 20,000 379,800
---------------
2,990,067
---------------
MANUFACTURING -- 0.4%
Quixote Corp. 6,400 156,224
---------------
MEDICAL SUPPLIES -- 7.1%
ADE Corp. 33,200 614,864
Excel Technology, Inc.* 32,700 1,074,522
II-VI, Inc.* 28,700 740,460
Neogen Corp. 25,700 636,589
---------------
3,066,435
---------------
METALS & MINING -- 1.5%
Gibraltar Steel Corp. 26,600 668,990
---------------
PREPACKAGED SOFTWARE -- 2.0%
Moldflow Corp.* 74,500 845,575
---------------
REAL ESTATE -- 1.4%
United Capital Corp. 29,600 613,312
---------------
RESTAURANTS -- 0.3%
Benihana, Inc.* 8,300 109,560
---------------
RETAIL -- 3.5%
Big 5 Sporting Goods Corp.* 51,300 1,074,735
Sportsman's Guide, Inc.* 26,600 456,163
---------------
1,530,898
---------------
TRANSPORTATION -- 6.5%
Central Freight Lines, Inc. 9,100 161,525
Knight Transportation, Inc.* 19,950 511,718
Marine Products Corp. 43,600 819,680
Marten Transport Limited 36,550 562,139
Old Dominion Freight
Line, Inc.* 22,200 756,576
---------------
2,811,638
---------------
TOTAL EQUITIES
(COST $31,907,671) 39,677,594
===============
</Table>
The accompanying notes are an integral part of the financial statements.
68
<Page>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ---------------
SHORT-TERM INVESTMENTS -- 8.3%
REPURCHASE AGREEMENT
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/03, 0.72%,
due 01/02/2004(a) $ 3,571,650 $ 3,571,650
---------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 3,571,650
---------------
TOTAL INVESTMENTS -- 100.2%
(COST $35,479,321)** 43,249,244
OTHER ASSETS/
(LIABILITIES) -- (0.2%) (77,358)
---------------
NET ASSETS -- 100.0% $ 43,171,886
===============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
* Non-income producing security.
** Aggregate cost for Federal tax purposes. (NOTE 7)
(a) Maturity value of $3,571,793. Collateralized by U.S. Government Agency
obligation with a rate of 5.146%, maturity date of 03/01/2030, and an
aggregate market value, including accrued interest, of $3,750,423.
The remainder of this page is intentionally left blank.
The accompanying notes are an integral part of the financial statements.
69
<Page>
MML SMALL COMPANY OPPORTUNITIES FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $31,907,671) (NOTE 2) $ 39,677,594
Short-term investments, at amortized cost (NOTE 2) 3,571,650
---------------
Total Investments 43,249,244
Cash 584,802
Receivables from:
Investments sold 235,140
Investment adviser (NOTE 3) 1,250
Fund shares sold 51,870
Interest and dividends 17,050
---------------
Total assets 44,139,356
---------------
LIABILITIES:
Payables for:
Investments purchased 907,793
Fund shares repurchased 1,044
Directors' fees and expenses (NOTE 3) 1,601
Affiliates (NOTE 3):
Investment management fees 39,409
Accrued expense and other liabilities 17,623
---------------
Total liabilities 967,470
---------------
NET ASSETS $ 43,171,886
===============
NET ASSETS CONSIST OF:
Paid-in capital $ 34,606,550
Accumulated net investment loss (1,079)
Accumulated net realized gain on investments 796,492
Net unrealized appreciation on investments 7,769,923
---------------
$ 43,171,886
===============
SHARES OUTSTANDING: 3,130,275
===============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 13.79
===============
</Table>
The accompanying notes are an integral part of the financial statements.
70
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends $ 228,492
Interest 8,720
---------------
Total investment income 237,212
---------------
EXPENSES:
Investment management fees (NOTE 3) 318,350
Audit and legal fees 19,584
Custody fees 12,511
Trustee reporting 2,851
Directors' fees (NOTE 3) 1,965
Shareholder reporting fees 1,321
---------------
Total expenses 356,582
Expenses waived (NOTE 3) (4,881)
---------------
Net expenses 351,701
---------------
NET INVESTMENT LOSS (114,489)
---------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions 3,385,671
Net change in unrealized appreciation (depreciation)
on investments 8,075,407
---------------
NET REALIZED AND UNREALIZED GAIN 11,461,078
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,346,589
===============
</Table>
The accompanying notes are an integral part of the financial statements.
71
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss $ (114,489) $ (79,386)
Net realized gain (loss) on investment transactions 3,385,671 (369,764)
Net change in unrealized appreciation (depreciation) on investments 8,075,407 (1,390,521)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 11,346,589 (1,839,671)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net realized gains (1,853,674) (51,201)
NET FUND SHARE TRANSACTIONS (NOTE 5) 10,475,678 11,264,223
------------- -------------
TOTAL INCREASE IN NET ASSETS 19,968,593 9,373,351
NET ASSETS:
Beginning of year 23,203,293 13,829,942
------------- -------------
End of year (including accumulated net investment loss of $1,079 and
undistributed net investment income of $324, respectively) $ 43,171,886 $ 23,203,293
============= =============
</Table>
The accompanying notes are an integral part of the financial statements.
72
<Page>
MML SMALL COMPANY OPPORTUNITIES FUND - FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
12/31/03 12/31/02 12/31/01+
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.13 $ 10.84 $ 10.00
---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04) (0.03) 0.00~
Net realized and unrealized gain (loss) on investments 4.32 (0.66) 0.97
---------- ---------- ----------
Total income (loss) from investment operations 4.28 (0.69) 0.97
---------- ---------- ----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- -- (0.00)++
From net realized gains (0.62) (0.02) (0.13)
---------- ---------- ----------
Total distributions (0.62) (0.02) (0.13)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 13.79 $ 10.13 $ 10.84
========== ========== ==========
TOTAL RETURN(a) 42.25% (6.34)% 9.69%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 43,172 $ 23,203 $ 13,830
Ratio of expenses to average daily net assets:
Before expense waiver 1.18% 1.29% 1.34%*
After expense waiver# 1.16% 1.16% 1.16%*
Net investment income (loss) to average daily net assets (0.38)% (0.41)% 0.04%*
Portfolio turnover rate 57% 43% 50%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
~ NET INVESTMENT INCOME IS LESS THAN $0.01 PER SHARE.
++ DISTRIBUTIONS FROM NET INVESTMENT INCOME IS LESS THAN $0.01 PER SHARE.
+ FOR THE PERIOD FROM MAY 1, 2001 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2001.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2001 THROUGH
DECEMBER 31, 2001 AND THE YEARS ENDED DECEMBER 31, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
73
<Page>
MML SMALL CAP GROWTH EQUITY FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve long-term
OBJECTIVE OF THE MML growth of capital by investing primarily in a
SMALL CAP GROWTH diversified portfolio of equity securities of smaller
EQUITY FUND? companies consistent with market capitalizations of
companies in the Russell 2000 Index, using a
growth-oriented investment strategy
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 48.54%, outpacing the 47.26% return of
the Russell 2000 Index, an unmanaged index of 2000
small capitalization common stocks and the 38.79%
return of the S&P SmallCap 600 Index, a market
capitalization-weighted index that measures the
performance of 600 domestic small-cap stocks chosen for
market size, liquidity and industry group
representation. The Fund also performed in line with
the 48.55% return of the Russell 2000 Growth Index,
which tracks the performance of stocks in the Russell
2000 Index sharing characteristics common to the growth
universe.
WHAT WAS THE It was an exciting year for small-cap stocks, as the
INVESTMENT BACKGROUND Russell 2000 posted a nearly 50% gain. As the war with
DURING THE PERIOD? Iraq started to wind down, equity markets started their
ascent. Spurred by investor confidence, low interest
rates, tax cuts and cash-out refinancing, the consumer
propped up the economy. Productivity gains further
fueled the rally. As is true for an early part of an
economic cycle and an atmosphere of declining risk
aversion, small-cap stocks outperformed.
WHAT FACTORS During the third quarter, the Fund outperformed its
CONTRIBUTED TO THE benchmark on strength in the financials, consumer
FUND'S PERFORMANCE - discretionary, information technology and health care
AND HOW DID YOU sectors. These results were partially offset, however,
RESPOND? by stock selection within consumer staples, where
company-specific earnings projections and disappointing
earnings results hampered returns. In the fourth
quarter, the Fund benefited from strong stock selection
in the technology and consumer discretionary sectors.
Conversely, these results were partially offset by
unfavorable stock picks in the industrials and
financials sectors and the Fund's cash balance.
During the fourth quarter, we added stocks in the media
and retailing industries. In technology, we initiated
positions in a number of new names and traded out of
some strong performers as they approached our price
targets.
WHAT IS YOUR OUTLOOK? We enter 2004 with optimism and a degree of caution.
While we are confident that there is still considerable
upside for most of our holdings, particularly in an
accelerating economic environment, we note that the
sustainability of the market's 2003 gains remains a
concern. Company cost-cutting in both operating and
capital budgets has enabled a trickle of revenue growth
to become a torrent of earnings and cash flow growth.
Furthermore, CFOs' continuing reluctance to spend,
despite enormous government stimuli, has resulted in a
jobless economic recovery. Lurking in the background
are huge budget and trade deficits and a weakening
dollar. The compatibility of all of these factors with
a rising stock market remains questionable.
74
<Page>
MML SMALL CAP GROWTH EQUITY FUND - PORTFOLIO MANAGER REPORT
MML SMALL CAP GROWTH EQUITY FUND
LARGEST STOCK HOLDINGS (12/31/03)
American Healthways, Inc.
Checkfree Corp.
Omnicare, Inc.
Dendrite International, Inc.
Gentex Corp.
MSC Industrial Direct Co. Cl. A
AmSurg Corp.
O'Reilly Automotive, Inc.
Financial Federal Corp.
Odyssey Healthcare, Inc.
GROWTH OF A $10,000 INVESTMENT
Hypothetical Investments in MML Small Cap Growth Equity Fund and the Russell
2000 Index.
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/3/99 - 12/31/03
MML Small Cap
Growth Equity Fund 48.54% 6.98%
- --------------------------------------------------------------------------------
Russell 2000 Index 47.26% 6.97%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML SMALL CAP GROWTH EQUITY FUND RUSSELL 2000 INDEX
5/3/99 $ 10,000 $ 10,000
12/99 $ 16,568 $ 11,767
12/00 $ 14,270 $ 11,411
12/2001 $ 12,456 $ 11,695
12/2002 $ 9,225 $ 9,299
12/2003 $ 13,702 $ 13,694
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE RUSSELL 2000 INDEX IS UNMANAGED AND DOES NOT INCUR
EXPENSES, AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN
REFLECTS CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY
PRODUCT CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED
IF THEY REFLECTED THESE CHARGES.
75
<Page>
MML SMALL CAP GROWTH EQUITY FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- ---------------
EQUITIES -- 88.7%
ADVERTISING -- 1.3%
Getty Images, Inc.* 12,325 $ 617,852
---------------
AEROSPACE & DEFENSE -- 0.5%
Triumph Group, Inc.* 6,300 229,320
---------------
AIR TRANSPORTATION -- 0.3%
Northwest Airlines Corp.* 10,900 137,558
---------------
AUTOMOTIVE & PARTS -- 1.4%
BorgWarner, Inc. 1,300 110,591
Dana Corp. 13,200 242,220
LKQ Corp.* 11,621 208,597
Visteon Corp. 12,100 125,961
---------------
687,369
---------------
BANKING, SAVINGS & LOANS -- 3.8%
Amcore Financial, Inc. 6,900 186,438
Bank of Hawaii Corp. 4,400 185,680
Financial Federal Corp.* 22,425 685,084
Hancock Holding Co. 3,950 215,551
Providian Financial Corp.* 22,800 265,392
Westcorp 6,900 252,195
---------------
1,790,340
---------------
BEVERAGES -- 0.9%
The Robert Mondavi Corp.* 10,700 415,588
---------------
BROADCASTING, PUBLISHING & PRINTING -- 2.6%
Emmis
Communications Corp.* 6,500 175,825
Journal Communications,
Inc. Cl. A 16,100 298,333
Lin TV Corp. Cl. A* 7,700 198,737
Playboy Enterprises,
Inc. Cl. B* 17,600 284,416
UnitedGlobalCom,
Inc. Cl. A* 33,100 280,688
---------------
1,237,999
---------------
CHEMICALS -- 2.4%
Cabot
Microelectronics Corp.* 7,350 360,150
Cytec Industries, Inc.* 5,625 215,944
IMC Global, Inc. 15,100 149,943
Minerals Technologies, Inc. 3,700 219,225
SurModics, Inc.* 8,200 195,980
---------------
1,141,242
---------------
COMMERCIAL SERVICES -- 8.1%
ADVO, Inc. 8,200 260,432
The Corporate Executive
Board Co.* 12,100 564,707
Exelixis, Inc.* 20,400 $ 144,432
Fluor Corp. 5,900 233,876
FTI Consulting, Inc.* 19,050 445,199
Incyte Corp.* 27,000 184,680
ITT Educational
Services, Inc.* 12,350 580,079
Maximus, Inc.* 15,325 599,667
MemberWorks, Inc.* 11,600 315,172
Netease.com, Inc.
Sponsored ADR (China)* 8,100 298,890
Washington Group
International, Inc.* 7,300 247,981
---------------
3,875,115
---------------
COMMUNICATIONS -- 1.5%
McData Corp. Cl. A* 21,300 202,989
Sirius Satellite Radio, Inc.* 35,000 110,600
Tekelec* 26,100 405,855
---------------
719,444
---------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 0.9%
3Com Corp.* 26,900 219,773
IDX Systems Corp.* 8,500 227,970
---------------
447,743
---------------
COMPUTER RELATED SERVICES -- 4.3%
Acxiom Corp.* 16,600 308,262
Checkfree Corp.* 35,492 981,354
Ingram Micro, Inc. Cl. A* 18,000 286,200
Sohu.com, Inc.* 16,300 489,163
---------------
2,064,979
---------------
COMPUTERS & INFORMATION -- 0.5%
Maxtor Corp.* 21,700 240,870
---------------
DATA PROCESSING & PREPARATION -- 1.0%
Factset Research
Systems, Inc. 11,825 451,833
---------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 8.3%
Agere Systems, Inc. Cl. A* 89,900 274,195
ASE Test Limited* 15,700 235,029
ATMI, Inc.* 600 13,884
Cree, Inc.* 24,950 441,365
Gentex Corp. 17,350 766,176
Moog, Inc. Cl. A* 5,300 261,820
ON Semiconductor Corp.* 53,500 345,075
Power Integrations, Inc.* 7,000 234,220
Quantum Fuel Systems
Technologies
Worldwide Corp.* 9,800 78,792
Sigmatel, Inc.* 6,160 152,029
Visx, Inc.* 25,200 583,380
Wilson Greatbatch
Technologies, Inc.* 13,610 $ 575,295
---------------
3,961,260
---------------
ENERGY -- 3.9%
CAL Dive International, Inc.* 9,000 216,990
Grey Wolf, Inc.* 65,600 245,344
Newfield Exploration Co.* 13,750 612,425
Peabody Energy Corp. 6,400 266,944
Premcor, Inc.* 5,600 145,600
TETRA Technologies, Inc.* 7,200 174,528
UGI Corp. 6,500 220,350
---------------
1,882,181
---------------
ENTERTAINMENT & LEISURE -- 1.5%
AMC Entertainment, Inc.* 18,000 273,780
Callaway Golf Co. 15,800 266,230
Churchill Downs, Inc. 4,900 177,385
---------------
717,395
---------------
FINANCIAL SERVICES -- 1.9%
Affiliated Managers
Group, Inc.* 3,000 208,770
The Chicago
Mercantile Exchange 5,800 419,688
Investment Technology
Group, Inc.* 16,850 272,127
---------------
900,585
---------------
FOODS -- 2.4%
American Italian
Pasta Co. Cl. A* 15,550 651,545
Sensient Technologies Corp. 9,500 187,815
Smithfield Foods, Inc.* 4,900 101,430
Wild Oats Markets, Inc.* 15,600 201,708
---------------
1,142,498
---------------
HEALTHCARE -- 9.5%
Allscripts Healthcare
Solutions, Inc.* 47,100 250,572
American Healthways, Inc.* 42,200 1,007,314
AmSurg Corp.* 19,000 719,910
Beverly Enterprises, Inc.* 27,000 231,930
Coventry Health Care, Inc.* 3,700 238,613
Genesis HealthCare Corp.* 4,100 93,398
Human Genome
Sciences, Inc.* 12,400 164,300
Humana, Inc.* 14,200 324,470
Manor Care, Inc. 9,100 314,587
Matria Healthcare, Inc.* 7,600 160,588
Odyssey Healthcare, Inc.* 22,550 659,813
Triad Hospitals, Inc.* 10,800 359,316
---------------
4,524,811
---------------
</Table>
The accompanying notes are an integral part of the financial statements.
76
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- ---------------
HOME CONSTRUCTION,
FURNISHINGS & APPLIANCES -- 0.5%
Furniture Brands
International, Inc. 8,025 $ 235,373
---------------
HOUSEHOLD PRODUCTS -- 0.7%
Ferro Corp. 9,900 269,379
Trex Company, Inc.* 1,200 45,576
---------------
314,955
---------------
INFORMATION RETRIEVAL SERVICES -- 1.2%
Agile Software Corp.* 20,000 198,000
CoStar Group, Inc.* 2,400 100,032
Sina Corp.* 8,000 270,000
---------------
568,032
---------------
INSURANCE -- 0.5%
Reinsurance
Group of America, Inc. 5,600 216,440
---------------
LODGING -- 1.9%
Aztar Corp.* 12,300 276,750
Vail Resorts, Inc.* 35,750 607,750
---------------
884,500
---------------
MACHINERY & COMPONENTS -- 2.3%
Agco Corp.* 13,700 275,918
Helix Technology Corp. 7,400 152,292
Kennametal, Inc. 6,600 262,350
Techtronic Industries
Co. Sponsored ADR
(Hong Kong) 18,400 255,372
Ultratech, Inc.* 5,200 152,724
---------------
1,098,656
---------------
MEDICAL SUPPLIES -- 2.9%
Arrow International, Inc. 8,700 217,326
Cholestech Corp.* 1,597 12,185
CONMED Corp.* 7,900 188,020
CTI Molecular
Imaging, Inc.* 14,000 236,740
Kensey Nash Corp.* 5,300 123,225
PSS World Medical, Inc.* 15,200 183,464
Resmed, Inc.* 6,700 278,318
Sequenom, Inc.* 38,000 120,840
---------------
1,360,118
---------------
METALS & MINING -- 0.5%
Precision Castparts Corp. 5,500 249,755
---------------
PHARMACEUTICALS -- 3.3%
Abgenix, Inc.* 10,200 127,092
Angiotech
Pharmaceuticals, Inc.* 5,300 243,800
The Medicines Co.* 5,800 170,868
Omnicare, Inc. 20,550 $ 830,014
Pharmaceutical
Resources, Inc.* 3,400 221,510
---------------
1,593,284
---------------
PREPACKAGED SOFTWARE -- 7.1%
Cerner Corp.* 15,475 585,729
Dendrite International, Inc.* 52,950 829,727
EPIQ Systems, Inc.* 20,900 358,017
Hyperion Solutions Corp.* 6,200 186,868
Informatica Corp.* 17,000 175,100
Red Hat, Inc.* 27,600 518,052
Sanchez Computer
Associates, Inc.* 24,500 101,675
SonicWALL, Inc.* 25,100 195,780
Take-Two Interactive
Software, Inc.* 15,550 447,996
---------------
3,398,944
---------------
REAL ESTATE -- 0.5%
Host Marriott Corp.* 19,500 240,240
---------------
RESTAURANTS -- 0.3%
Krispy Kreme
Doughnuts, Inc.* 4,500 164,700
---------------
RETAIL -- 5.3%
The Bombay Co., Inc.* 25,300 205,942
Borders Group, Inc.* 10,500 230,160
Foot Locker, Inc. 18,000 422,100
Linens 'N Things, Inc.* 5,900 177,472
MSC Industrial Direct
Co. Cl. A 27,775 763,813
O'Reilly Automotive, Inc.* 18,675 716,373
---------------
2,515,860
---------------
TELEPHONE UTILITIES -- 1.2%
General Communication,
Inc. Cl. A* 20,800 180,960
Nextel Partners, Inc. Cl. A* 30,100 404,845
---------------
585,805
---------------
TRANSPORTATION -- 3.5%
CNF, Inc. 6,800 230,520
EGL, Inc.* 10,800 189,648
GATX Corp. 11,600 324,568
J.B. Hunt Transport
Services, Inc.* 19,600 529,396
Kansas City Southern* 28,175 403,466
---------------
1,677,598
---------------
TOTAL EQUITIES
(COST $32,611,624) 42,290,242
---------------
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ---------------
SHORT-TERM INVESTMENTS -- 31.3%
CASH EQUIVALENTS -- 21.6%**
Bank of Montreal
Eurodollar Time Deposit
1.060% 01/15/2004 $ 27,958 $ 27,958
Bank of Montreal
Eurodollar Time Deposit
1.060% 02/17/2004 147,725 147,725
Bank of Nova Scotia
Eurodollar Time Deposit
1.080% 03/03/2004 443,176 443,176
Bank of Scotland
Eurodollar Time Deposit
1.060% 04/02/2004 110,793 110,793
Bank of the West
Eurodollar Time Deposit
1.075% 01/14/2004 110,793 110,793
Barclays Eurodollar
Time Deposit
1.090% 03/05/2004 369,313 369,313
BNP Paribas
Eurodollar Time Deposit
0.970% 01/07/2004 147,725 147,725
Canadian Imperial
Bank of Commerce
Bank Note
0.990% 05/18/2004 738,625 738,625
Citigroup
Eurodollar Time Deposit
1.080% 01/05/2004 73,863 73,863
Citigroup
Eurodollar Time Deposit
1.090% 03/04/2004 295,451 295,451
Citigroup
Eurodollar Time Deposit
1.100% 01/22/2004 73,863 73,863
Credit Agricole Indosuez
Eurodollar Time Deposit
1.080% 01/06/2004 760,784 760,784
Dreyfus Cash
Management Plus, Inc.
Money Market Fund 406,245 406,245
Fannie Mae Discount Note
1.062% 01/02/2004 221,588 221,588
Fleet National Bank
Bank Note
1.000% 01/21/2004 369,313 369,313
Freddie Mac Discount Note
1.062% 01/27/2004 294,841 294,841
General Electric
Capital Corp.
1.092% 01/05/2004 368,643 368,643
</Table>
The accompanying notes are an integral part of the financial statements.
77
<Page>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ---------------
Goldman Sachs
Financial Square
Prime Obligations
Money Market Fund $ 147,725 $ 147,725
Harris Trust &
Savings Bank
Eurodollar Time Deposit
1.050% 01/29/2004 81,249 81,249
Merrill Lynch Premier
Institutional Money
Market Fund 508,183 508,183
Merrimac Money
Market Fund 1,226,119 1,226,119
Morgan Stanley
Dean Witter & Co.
1.080% 01/29/2004 384,085 384,085
National Bank of
Commerce Bank Note
1.120% 05/19/2004 184,656 184,656
Royal Bank of Canada
Eurodollar Time Deposit
1.050% 02/27/2004 184,656 184,656
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/09/2004 147,725 147,725
Royal Bank of Scotland
Eurodollar Time Deposit
1.080% 01/15/2004 369,313 369,313
Royal Bank of Scotland
Eurodollar Time Deposit
1.090% 03/03/2004 184,656 184,656
Southtrust Bank
Eurodollar Time Deposit
1.090% 02/17/2004 221,588 221,588
Svenska Handlesbanken
Eurodollar Time Deposit
1.080% 02/04/2004 184,656 184,656
Svenska Handlesbanken
Eurodollar Time Deposit
1.085% 01/15/2004 184,656 184,656
Svenska Handlesbanken
Eurodollar Time Deposit
1.090% 02/24/2004 369,313 369,313
Toronto Dominion Bank
Eurodollar Time Deposit
1.100% 01/08/2004 73,863 73,863
Wells Fargo
Eurodollar Time Deposit
1.070% 01/20/2004 $ 886,352 $ 886,352
---------------
10,299,494
---------------
REPURCHASE AGREEMENT -- 9.7%
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/2003, 0.72%,
due 01/02/2004(a) 4,629,791 4,629,791
---------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 14,929,285
---------------
TOTAL INVESTMENTS -- 120.0%
(Cost $47,540,909)*** 57,219,527
OTHER ASSETS/
(LIABILITIES) -- (20.0%) (9,532,626)
---------------
NET ASSETS -- 100.0% $ 47,686,901
===============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
ADR - American Depository Receipt.
* Non-income producing security.
** Represents investments of security lending collateral. (NOTE 2).
*** Aggregate cost for Federal tax purposes. (NOTE7)
(a) Maturity value of $4,629,976. Collateralized by U.S. Government Agency
obligation with a rate of 1.613%, maturity date of 01/15/2028, and an
aggregate market value, including accrued interest, of $4,861,532.
The accompanying notes are an integral part of the financial statements.
78
<Page>
MML SMALL CAP GROWTH EQUITY FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $32,611,624) (NOTE 2) $ 42,290,242
Short-term investments, at amortized cost (NOTE 2) 14,929,285
---------------
Total Investments (including securities on loan with market values of $9,868,688) 57,219,527
Cash 772,481
Receivables from:
Investments sold 391,126
Investment adviser (NOTE 3) 3,028
Fund shares sold 104,129
Interest and dividends 10,478
---------------
Total assets 58,500,769
---------------
LIABILITIES:
Payables for:
Investments purchased 440,601
Fund shares repurchased 113
Securities on loan (NOTE 2) 10,299,494
Directors' fees and expenses (NOTE 3) 4,514
Affiliates (NOTE 3):
Investment management fees 45,226
Accrued expense and other liabilities 23,920
---------------
Total liabilities 10,813,868
---------------
NET ASSETS $ 47,686,901
===============
NET ASSETS CONSIST OF:
Paid-in capital $ 57,565,366
Accumulated net investment loss (3,923)
Accumulated net realized loss on investments (19,553,160)
Net unrealized appreciation on investments 9,678,618
---------------
$ 47,686,901
===============
SHARES OUTSTANDING: 4,089,226
===============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: $ 11.66
===============
</Table>
The accompanying notes are an integral part of the financial statements.
79
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends (net of withholding tax of $53) $ 99,759
Interest (including securities lending income of $16,424) 25,793
---------------
Total investment income 125,552
---------------
EXPENSES:
Investment management fees (NOTE 3) 370,386
Custody fees 23,525
Audit and legal fees 20,161
Trustee reporting 13,446
Directors' fees (NOTE 3) 2,227
Shareholder reporting fees 1,613
---------------
Total expenses 431,358
Expenses waived (NOTE 3) (23,072)
Fees paid indirectly (NOTE 3) (9,875)
---------------
Net expenses 398,411
---------------
NET INVESTMENT LOSS (272,859)
---------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions 1,394,593
Net change in unrealized appreciation (depreciation) on investments 12,478,220
---------------
NET REALIZED AND UNREALIZED GAIN 13,872,813
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 13,599,954
===============
</Table>
The accompanying notes are an integral part of the financial statements.
80
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss $ (272,859) $ (304,389)
Net realized gain (loss) on investment transactions 1,394,593 (6,838,311)
Net change in unrealized appreciation (depreciation) on investments 12,478,220 (4,293,549)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 13,599,954 (11,436,249)
------------- -------------
NET FUND SHARE TRANSACTIONS (NOTE 5) 7,302,485 (10,762,040)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 20,902,439 (22,198,289)
NET ASSETS:
Beginning of year 26,784,462 48,982,751
------------- -------------
End of year (including accumulated net investment loss of $3,923
and $3,126, respectively) $ 47,686,901 $ 26,784,462
============= =============
</Table>
The accompanying notes are an integral part of the financial statements.
81
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01 12/31/00 12/31/99+
---------- ---------- ---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.85 $ 10.60 $ 12.20 $ 16.15 $ 10.00
---------- ---------- ---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (0.07) (0.09) (0.06) (0.01)*** (0.01)
Net realized and unrealized gain (loss)
on investments 3.88 (2.66) (1.49) (2.09) 6.58
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment
operations 3.81 (2.75) (1.55) (2.10) 6.57
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net realized gains -- -- (0.05) (1.85) (0.42)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.66 $ 7.85 $ 10.60 $ 12.20 $ 16.15
========== ========== ========== ========== ==========
TOTAL RETURN(a) 48.54% (25.94)% (12.71)% (13.87)% 65.68%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 47,687 $ 26,784 $ 48,983 $ 70,380 $ 47,877
Ratio of expenses to average daily net assets:
Before expense waiver 1.25% 1.24% 1.15% 1.25% 0.96%**
After expense waiver# 1.16%(b) 1.16%(b) N/A 1.18% 0.79%**
Net investment loss to average daily net assets (0.79)% (0.84)% (0.46)% (0.04)% (0.07)%**
Portfolio turnover rate 59% 53% 104% 95% 75%**
</Table>
** PERCENTAGE REPRESENTS RESULTS FOR THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
+ FOR THE PERIOD FROM MAY 3, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1999.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 3, 1999 THROUGH
DECEMBER 31, 1999 AND THE YEARS ENDED DECEMBER 31, 2000, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
(b) THE FUND HAS ENTERED INTO AN AGREEMENT WITH CERTAIN BROKERS TO REBATE A
PORTION OF BROKERAGE COMMISSIONS. THE REBATED COMMISSIONS ARE USED TO
REDUCE OPERATING EXPENSES OF THE FUND.
The accompanying notes are an integral part of the financial statements.
82
<Page>
MML EMERGING GROWTH FUND - PORTFOLIO MANAGER REPORT
WHAT IS THE INVESTMENT The objective of the Fund is to achieve capital
OBJECTIVE OF THE MML appreciation by investing primarily in a diversified
EMERGING GROWTH FUND? portfolio of equity securities of smaller, emerging
growth companies, using a growth-oriented investment
strategy.
HOW DID THE FUND For the 12 months ending December 31, 2003, the Fund's
PERFORM DURING 2003? shares returned 45.76%, which trailed the 47.26% return
of the Russell 2000 Index, an unmanaged index of 2000
small capitalization common stocks.
WHAT WAS THE During the third quarter, companies posted better
INVESTMENT BACKGROUND performance than they did in comparative periods in the
DURING THE PERIOD? past. Positive earnings revisions during the timeframe
ran 2:1 over downward revisions. For the full year,
small-cap investors favored the smallest of small-cap
stocks, and they favored lower quality. In many cases,
companies with the poorest fundamentals performed the
best.
WHAT FACTORS During the third quarter, strong performers included
CONTRIBUTED TO THE the technology sector (where specialty semiconductor
FUND'S PERFORMANCE - manufacturers produced some of the best gains) and the
AND HOW DID YOU biotechnology segment of the health care sector. In the
RESPOND? fourth quarter, we maintained an overweight position in
the technology sector, with an approximate 30%
weighting versus the benchmark's 23%.
Also in the third quarter, we maintained an approximate
26% weighting to the broad consumer sector, relative to
about a 20% weighting in the benchmark. This weighting
expanded in large part through appreciation of certain
retailers and Internet-related positions. Many of these
positions have the highest revenue and earnings growth
rates in the portfolio. Slower-growing consumer
services companies provided mixed investment results in
the quarter.
Technology hardware, which had been a source of returns
all year, continued the positive trend in the fourth
quarter. Conversely, a detractor from performance in
the closing quarter was our underweight relative to the
benchmark in the materials/processing sector, which
produced the greatest total return in the benchmark,
contributing 104 basis points to the index. Growth
investors had moved into these stocks to take advantage
of favorable supply/demand patterns in base metals and
natural resources, but since these companies typically
do not produce the sort of secular revenue and earnings
growth we look for in our definition of growth, we do
not tend to hold a strong position in that sector.
WHAT IS YOUR OUTLOOK? We believe our universe of companies offers further
upside potential, particularly relative to the
benchmark. We have experienced solid price/earnings
multiple expansion, and if earnings results come in as
we expect, we believe there is room for further
multiple expansion as investors return to higher
quality companies with more sustainable growth
characteristics. We have seen indicators of this trend
in the early weeks of 2004.
83
<Page>
MML EMERGING GROWTH FUND
LARGEST STOCK HOLDINGS (12/31/03)
O2Micro International Limited
Navigant Consulting, Inc.
Anteon International Corp.
M-Systems Flash Disk Pioneers Limited
Salix Pharmaceuticals Limited
United Surgical Partners International, Inc.
Infospace, Inc.
Urban Outfitters, Inc.
Altiris, Inc.
Ask Jeeves, Inc.
GROWTH OF A $10,000 INVESTMENT
MML SERIES INVESTMENT FUND
TOTAL RETURN
<Table>
<Caption>
SINCE INCEPTION
ONE YEAR AVERAGE ANNUAL
1/1/03 - 12/31/03 5/1/00 - 12/31/03
MML Emerging Growth Fund 45.76% -16.49%
Russell 2000 Index 47.26% 4.04%
</Table>
[CHART]
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION
<Table>
<Caption>
MML EMERGING GROWTH FUND RUSSELL 2000 INDEX
5/1/2000 $ 10,000 $ 10,000
12/00 $ 7,350 $ 9,636
12/1/2001 $ 6,150 $ 9,876
12/2/2002 $ 3,540 $ 7,853
12/3/2003 $ 5,160 $ 11,564
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES OF THE FUND WILL FLUCTUATE WITH MARKET CONDITIONS SO
THAT SHARES OF THE FUND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED
MUTUAL FUND, WHILE THE RUSSELL 2000 INDEX IS UNMANAGED AND DOES NOT INCUR
EXPENSES, AND CANNOT BE PURCHASED DIRECTLY BY INVESTORS. THE FUND'S RETURN
REFLECTS CHANGES IN THE NET ASSET VALUE PER SHARE WITHOUT THE DEDUCTION OF ANY
PRODUCT CHARGES. TOTAL RETURN FIGURES WOULD BE LOWER FOR THE PERIODS PRESENTED
IF THEY REFLECTED THESE CHARGES.
84
<Page>
MML EMERGING GROWTH FUND - PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
EQUITIES -- 95.3%
ADVERTISING 0.9%
Valueclick, Inc.* 9,650 $ 87,622
-------------
AEROSPACE & DEFENSE -- 0.7%
Engineered Support
Systems, Inc. 800 44,048
MTC Technologies, Inc.* 800 25,776
-------------
69,824
-------------
AIR TRANSPORTATION -- 1.0%
Forward Air Corp.* 1,700 46,750
Pinnacle Airlines Corp.* 3,700 51,393
-------------
98,143
-------------
APPAREL, TEXTILES & SHOES -- 4.1%
Aeropostale, Inc.* 1,300 35,646
bebe stores, inc.* 1,250 32,487
Christopher & Banks Corp. 2,600 50,778
Deckers Outdoor Corp.* 900 18,450
Guess ?, Inc.* 2,800 33,796
K-Swiss, Inc. Cl. A 1,650 39,699
Oxford Industries, Inc. 1,550 52,514
Pacific Sunwear of
California, Inc.* 900 19,008
Urban Outfitters, Inc.* 3,600 133,380
-------------
415,758
-------------
AUTOMOTIVE & PARTS -- 0.9%
United Auto Group, Inc. 2,750 86,075
-------------
BANKING, SAVINGS & LOANS -- 2.3%
Franklin Bank Corp.* 1,250 23,750
NetBank, Inc. 5,100 68,085
PrivateBancorp, Inc. 1,450 66,004
Silicon Valley Bancshares* 1,500 54,105
World Acceptance Corp.* 950 18,914
-------------
230,858
-------------
BEVERAGES -- 0.3%
Peet's Coffee & Tea, Inc.* 1,850 32,208
-------------
BUILDING MATERIALS & CONSTRUCTION 0.4%
Merge Technologies, Inc.* 2,450 43,218
-------------
CHEMICALS -- 0.8%
Applied Films Corp.* 2,450 80,899
-------------
COMMERCIAL SERVICES -- 5.5%
BioReliance Corp.* 400 19,128
Bright Horizons Family
Solutions, Inc.* 1,300 54,600
eResearch
Technology, Inc.* 4,175 106,128
Exact Sciences Corp.* 3,400 34,408
Ipass, Inc.* 2,900 $ 46,487
Navigant Consulting, Inc.* 8,600 162,196
Omnicell, Inc.* 5,250 85,050
Pharmaceutical Product
Development, Inc.* 1,650 44,500
-------------
552,497
-------------
COMMUNICATIONS -- 2.8%
Alvarion Limited* 3,100 35,805
AudioCodes Limited* 4,850 50,634
Ditech
Communications Corp.* 2,250 42,975
Mindspeed
Technologies, Inc.* 9,500 65,075
Sonus Networks, Inc.* 6,000 45,360
Verisity Limited* 3,400 43,350
-------------
283,199
-------------
COMPUTER & DATA PROCESSING SERVICES -- 1.5%
Anteon
International Corp.* 4,250 153,212
-------------
COMPUTER INTEGRATED SYSTEMS DESIGN -- 0.8%
NetScreen
Technologies, Inc.* 3,150 77,962
-------------
COMPUTER PROGRAMMING SERVICES -- 2.3%
Business Objects
SA Sponsored ADR
(France)* 3,250 112,677
Callidus Software, Inc.* 450 7,960
Cognizant Technology
Solutions Corp.* 1,150 52,486
Macromedia, Inc.* 3,200 57,088
-------------
230,211
-------------
COMPUTER RELATED SERVICES -- 2.9%
Carreker Corp.* 1,250 17,512
Checkfree Corp.* 2,000 55,300
CNET Networks, Inc.* 11,300 77,066
Digitas, Inc.* 4,650 43,338
eSpeed, Inc. Cl. A* 1,750 40,967
NetFlix, Inc.* 1,100 60,159
-------------
294,342
-------------
COMPUTERS & INFORMATION -- 3.1%
Emulex Corp.* 2,200 58,696
M-Systems Flash Disk
Pioneers Limited* 8,650 149,472
Scientific Games
Corp. Cl. A* 2,350 39,973
SRA International,
Inc. Cl. A* 1,500 64,650
-------------
312,791
-------------
DATA PROCESSING & PREPARATION -- 0.1%
HomeStore, Inc.* 2,050 $ 9,696
-------------
ELECTRICAL EQUIPMENT & ELECTRONICS -- 12.2%
August Technology Corp.* 4,250 78,837
Ceradyne, Inc.* 1,400 47,684
Credence Systems Corp.* 7,250 95,410
ESS Technology, Inc.* 2,750 46,777
Exar Corp.* 2,750 46,970
FormFactor, Inc.* 2,600 51,480
Ixia* 4,100 47,970
Mobility Electronics, Inc.* 3,900 34,870
O2Micro
International Limited* 10,400 232,960
OmniVision
Technologies, Inc.* 1,100 60,775
Photon Dynamics, Inc.* 2,200 88,528
Pixelworks, Inc.* 100 1,104
PLX Technology, Inc.* 5,500 48,675
Power Integrations, Inc.* 2,800 93,688
Sigmatel, Inc.* 2,550 62,934
Silicon Laboratories, Inc.* 750 32,415
Silicon Storage
Technology, Inc.* 3,050 33,550
Superconductor
Technologies, Inc.* 3,100 17,298
Tessera Technologies, Inc.* 500 9,405
Trident Microsystems, Inc.* 3,150 54,873
Virage Logic Corp.* 4,200 42,714
-------------
1,228,917
-------------
ENTERTAINMENT & LEISURE -- 2.1%
Alliance Gaming Corp.* 5,150 126,947
Multimedia Games, Inc.* 1,300 53,430
Penn National Gaming, Inc.* 1,250 28,850
-------------
209,227
-------------
FINANCIAL SERVICES -- 3.2%
Accredited Home Lenders
Holding Co.* 1,800 55,080
Affiliated Managers
Group, Inc.* 650 45,233
AmeriCredit Corp.* 1,850 29,470
Boston Private Financial
Holdings, Inc. 4,300 106,812
CapitalSource, Inc.* 1,900 41,192
Saxon Capital, Inc.* 1,950 40,852
-------------
318,639
-------------
HEALTHCARE -- 4.6%
Accredo Health, Inc.* 2,750 86,927
American Healthways, Inc.* 2,150 51,320
Covance, Inc.* 1,500 40,200
</Table>
The accompanying notes are an integral part of the financial statements.
85
<Page>
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
Odyssey Healthcare, Inc.* 1,050 $ 30,723
Sunrise Senior Living, Inc.* 2,350 91,039
United Surgical Partners
International, Inc.* 4,150 138,942
VistaCare, Inc. Cl. A* 800 28,120
-------------
467,271
-------------
HOME CONSTRUCTION, FURNISHINGS &
APPLIANCES -- 0.7%
Select Comfort Corp.* 2,650 65,614
-------------
INFORMATION RETRIEVAL SERVICES -- 4.2%
Agile Software Corp.* 2,850 28,215
Ask Jeeves, Inc.* 7,200 130,464
Autobytel, Inc.* 3,250 29,510
CoStar Group, Inc.* 2,500 104,200
Infospace, Inc.* 5,800 133,690
NIC, Inc.* 200 1,606
-------------
427,685
-------------
INSURANCE -- 0.9%
AMERIGROUP Corp.* 700 29,855
Infinity Property &
Casualty Corp. 950 31,397
ProAssurance Corp.* 950 30,542
-------------
91,794
-------------
INTERNET SOFTWARE -- 1.4%
Chordiant Software, Inc.* 2,850 15,533
WebEx
Communications, Inc.* 6,400 128,640
-------------
144,173
-------------
LODGING -- 0.4%
Station Casinos, Inc. 1,350 41,351
-------------
MACHINERY & COMPONENTS -- 1.0%
Ultratech, Inc.* 3,450 101,327
-------------
MEDICAL SUPPLIES -- 5.6%
Advanced Neuromodulation
Systems, Inc.* 825 37,934
Align Technology, Inc.* 2,950 48,734
Closure Medical Corp.* 3,000 101,790
I-Flow Corp.* 2,050 28,516
Intuitive Surgical, Inc.* 2,950 50,416
Inveresk Research
Group, Inc.* 2,200 54,406
Kyphon, Inc.* 2,650 65,800
LTX Corp.* 2,450 36,824
Orthologic Corp.* 4,850 $ 29,731
Ventana Medical
Systems, Inc.* 2,000 78,800
Wright Medical
Group, Inc.* 1,100 33,484
-------------
566,435
-------------
METALS & MINING -- 0.8%
Steel Dynamics, Inc.* 3,250 76,343
-------------
PHARMACEUTICALS -- 13.6%
Adolor Corp.* 3,510 70,270
Alexion
Pharmaceuticals, Inc.* 3,800 64,676
Angiotech
Pharmaceuticals, Inc.* 1,300 59,800
Atherogenics, Inc.* 6,950 103,903
Atrix Labs, Inc.* 2,350 56,494
Discovery
Laboratories, Inc.* 4,300 45,107
EPIX Medical, Inc.* 3,600 58,608
Ilex Oncology, Inc.* 1,650 35,063
Impax Laboratories, Inc.* 1,750 25,183
Inspire
Pharmaceuticals, Inc.* 2,750 38,940
K-V Pharmaceutical
Co. Cl. A* 3,525 89,888
Martek Biosciences Corp.* 1,050 68,219
The Medicines Co.* 3,700 109,002
Nabi Biopharmaceuticals* 5,550 70,541
Onyx
Pharmaceuticals, Inc.* 2,750 77,633
Penwest
Pharmaceuticals Co.* 4,600 79,488
Regeneration
Technologies, Inc.* 4,650 50,964
Salix
Pharmaceuticals Limited* 6,250 141,688
Serologicals Corp.* 800 14,880
Telik, Inc.* 3,450 79,385
Vicuron
Pharmaceuticals, Inc.* 1,350 25,178
-------------
1,364,910
-------------
PREPACKAGED SOFTWARE -- 8.3%
Altiris, Inc.* 3,650 133,152
Dendrite
International, Inc.* 4,350 68,165
Informatica Corp.* 2,600 26,780
Magma Design
Automation, Inc.* 5,100 $ 119,034
Micromuse, Inc.* 4,900 33,810
MicroStrategy, Inc. Cl. A* 2,050 107,584
Packeteer, Inc.* 2,450 41,601
Quest Software, Inc.* 4,200 59,640
Red Hat, Inc.* 4,800 90,096
Retek, Inc.* 6,800 63,104
United Online, Inc.* 5,625 94,444
-------------
837,410
-------------
RESTAURANTS -- 1.3%
Chicago Pizza &
Brewery, Inc.* 4,600 68,632
RARE Hospitality
International, Inc.* 2,450 59,878
-------------
128,510
-------------
RETAIL -- 4.1%
1-800-Flowers.com, Inc.* 4,850 53,641
Cost Plus, Inc.* 3,050 125,050
CSK Auto Corp.* 1,650 30,971
Kenneth Cole Productions,
Inc. Cl. A 1,500 44,100
Kirkland's, Inc.* 2,750 48,565
Restoration
Hardware, Inc.* 3,350 15,913
The Sports Authority, Inc.* 2,350 90,240
-------------
408,480
-------------
RETAIL - INTERNET -- 0.5%
Priceline.com, Inc.* 2,833 50,711
-------------
TOTAL EQUITIES
(COST $8,640,655) 9,587,312
-------------
WARRANTS -- 0.1%
INFORMATION RETRIEVAL SERVICES
InterActive Corp.* 332 14,176
-------------
TOTAL WARRANTS
(COST $2,576) 14,176
-------------
TOTAL LONG TERM INVESTMENTS
(COST $8,643,231) 9,601,488
-------------
</Table>
The accompanying notes are an integral part of the financial statements.
86
<Page>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
SHORT-TERM INVESTMENTS -- 7.8%
REPURCHASE AGREEMENT
Investors Bank & Trust
Company Repurchase
Agreement, dated
12/31/2003, 0.72%,
due 01/02/2004(a) $ 780,113 $ 780,113
-------------
TOTAL SHORT-TERM
INVESTMENTS
(AT AMORTIZED COST) 780,113
-------------
TOTAL INVESTMENTS -- 103.2%
(COST $9,423,344)** 10,381,601
OTHER ASSETS/
(LIABILITIES) -- (3.2%) (317,558)
-------------
NET ASSETS -- 100.0% $ 10,064,043
=============
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
ADR - American Depository Receipt.
* Non-income producing security.
** Aggregate cost for Federal tax purposes. (NOTE 7).
(a) Maturity value of $780,144. Collateralized by U.S. Government Agency
obligation with a rate of 3.61%, maturity date of 03/25/2022, and an
aggregate market value, including accrued interest, of $819,118.
The remainder of this page is intentionally left blank.
The accompanying notes are an integral part of the financial statements.
87
<Page>
MML EMERGING GROWTH FUND - FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
DECEMBER 31, 2003
-----------------
ASSETS:
Investments, at value (cost $8,643,231) (NOTE 2) $ 9,601,488
Short-term investments, at amortized cost (NOTE 2) 780,113
-----------------
Total Investments 10,381,601
Receivables from:
Investments sold 396,328
Investment adviser (NOTE 3) 6,618
Fund shares sold 47,957
Interest and dividends 268
-----------------
Total assets 10,832,772
-----------------
LIABILITIES:
Payables for:
Investments purchased 698,169
Fund shares repurchased 34,744
Directors' fees and expenses (NOTE 3) 2,007
Affiliates (NOTE 3):
Investment management fees 9,358
Accrued expense and other liabilities 24,451
-----------------
Total liabilities 768,729
-----------------
NET ASSETS $ 10,064,043
=================
NET ASSETS CONSIST OF:
Paid-in capital $ 18,280,232
Accumulated net investment loss (1,883)
Accumulated net realized loss on investments (9,172,563)
Net unrealized appreciation on investments 958,257
-----------------
$ 10,064,043
=================
SHARES OUTSTANDING: 1,951,043
=================
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE: $ 5.16
=================
</Table>
The accompanying notes are an integral part of the financial statements.
88
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
YEAR ENDED
DECEMBER 31, 2003
-----------------
INVESTMENT INCOME (NOTE 2):
Dividends $ 2,549
Interest 2,173
-----------------
Total investment income 4,722
-----------------
EXPENSES:
Investment management fees (NOTE 3) 68,165
Custody fees 46,484
Audit and legal fees 19,077
Trustee reporting 13,446
Directors' fees (NOTE 3) 420
Shareholder reporting fees 319
-----------------
Total expenses 147,911
Expenses waived (NOTE 3) (72,606)
-----------------
Net expenses 75,305
-----------------
NET INVESTMENT LOSS (70,583)
-----------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions 1,222,283
Net change in unrealized appreciation (depreciation)
on investments 1,137,693
-----------------
NET REALIZED AND UNREALIZED GAIN 2,359,976
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,289,393
=================
</Table>
The accompanying notes are an integral part of the financial statements.
89
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss $ (70,583) $ (100,440)
Net realized gain (loss) on investment transactions 1,222,283 (3,995,193)
Net change in unrealized appreciation (depreciation)
on investments 1,137,693 (1,269,505)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 2,289,393 (5,365,138)
----------------- -----------------
NET FUND SHARE TRANSACTIONS (NOTE 5) 3,441,673 (2,486,260)
----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 5,731,066 (7,851,398)
NET ASSETS:
Beginning of year 4,332,977 12,184,375
----------------- -----------------
End of year (including accumulated net investment loss of
$1,883 and $1,732, respectively) $ 10,064,043 $ 4,332,977
================= =================
</Table>
The accompanying notes are an integral part of the financial statements.
90
<Page>
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/03 12/31/02 12/31/01 12/31/00+
---------- ---------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.54 $ 6.15 $ 7.34 $ 10.00
---------- ---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (0.04) (0.05)*** (0.04) (0.04)***
Net realized and unrealized gain (loss) on investments 1.66 (2.56) (1.15) (2.62)
---------- ---------- ---------- ----------
Total income (loss) from investment operations 1.62 (2.61) (1.19) (2.66)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 5.16 $ 3.54 $ 6.15 $ 7.34
========== ========== ========== ==========
TOTAL RETURN(a) 45.76% (42.44)% (16.33)% (26.50)%**
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 10,064 $ 4,333 $ 12,184 $ 11,095
Ratio of expenses to average daily net assets:
Before expense waiver 2.28% 1.76% 1.37% 1.56%*
After expense waiver# 1.16% 1.16% 1.16% 1.16%*
Net investment loss to average daily net assets (1.09)% (1.09)% (0.81)% (0.63)%*
Portfolio turnover rate 195% 190% 139% 119%**
</Table>
* ANNUALIZED.
** PERCENTAGE REPRESENTS RESULTS FROM THE PERIOD AND ARE NOT ANNUALIZED.
*** PER SHARE AMOUNT CALCULATED ON THE AVERAGE SHARES METHOD.
+ FOR THE PERIOD FROM MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2000.
# COMPUTED AFTER GIVING EFFECT TO AN AGREEMENT BY MASSMUTUAL TO WAIVE
CERTAIN FEES AND EXPENSES OF THE FUND FOR THE PERIOD MAY 1, 2000 THROUGH
DECEMBER 31, 2000 AND THE YEARS ENDED DECEMBER 31, 2001, 2002 AND 2003.
(a) TOTAL RETURN INFORMATION SHOWN IN THE FINANCIAL HIGHLIGHTS TABLE DOES NOT
REFLECT EXPENSES THAT APPLY AT THE SEPARATE ACCOUNT LEVEL OR TO RELATED
INSURANCE PRODUCTS. INCLUSION OF THESE CHARGES WOULD REDUCE THE TOTAL
RETURN FIGURES FOR ALL PERIODS SHOWN.
The accompanying notes are an integral part of the financial statements.
91
<Page>
NOTES TO FINANCIAL STATEMENTS
1. THE FUND MML Series Investment Fund ("MML Trust") is registered
under the Investment Company Act of 1940, as amended
(the "1940 Act"), as a no-load, open-end, management
investment company. The Trust is organized under the
laws of the Commonwealth of Massachusetts as a
Massachusetts business trust pursuant to an Agreement
and Declaration of Trust dated May 14, 1993, as
amended. The following are ten series of the Trust
(each individually referred to as a "Fund" or
collectively as the "Funds"): MML Inflation-Protected
Bond Fund ("Inflation-Protected Bond Fund"), MML Large
Cap Value Fund ("Large Cap Value Fund"), MML Equity
Index Fund ("Equity Index Fund"), MML Enhanced Index
Core Equity Fund ("Enhanced Index Core Equity Fund"),
MML Growth Equity Fund ("Growth Equity Fund"), MML OTC
100 Fund ("OTC 100 Fund"), MML Small Cap Equity Fund
("Small Cap Equity Fund"), MML Small Company
Opportunities Fund ("Small Company Opportunities
Fund"), MML Small Cap Growth Equity Fund ("Small Cap
Growth Equity Fund") and MML Emerging Growth Fund
("Emerging Growth Fund").
The MML Trust was established by Massachusetts Mutual
Life Insurance Company ("MassMutual") for the purpose
of providing vehicles for the investment of assets of
various separate investment accounts established by
MassMutual and by life insurance companies which are
subsidiaries of MassMutual. Shares of MML Trust are not
offered to the general public.
The Equity Index Fund offers three classes of shares:
Class I, Class II and Class III. Each share class
invests in the same portfolio of assets. The principal
difference among the classes is the level of service
and administration fees borne by the classes. Because
each class will have different fees and expenses,
performance and share prices among the classes will
vary. The classes of shares are offered to different
types of investors, as outlined in the Fund's
Prospectus.
2. SIGNIFICANT The following is a summary of significant accounting
ACCOUNTING policies followed consistently by each Fund in the
POLICIES preparation of the financial statements in conformity
with accounting principles generally accepted in the
United States of America ("generally accepted
accounting principles"). The preparation of the
financial statements in accordance with generally
accepted accounting principles requires management to
make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
INVESTMENT Equity securities are valued on the basis of valuations
VALUATION furnished by a pricing service, authorized by the
Trustees, which provides the last reported sale price
for securities listed on a national securities exchange
or the official closing price on the NASDAQ National
Market System, or in the case of over-the-counter
securities not so listed, the last reported bid price.
Debt securities (other than short-term obligations with
a remaining maturity of sixty days or less) are valued
on the basis of valuations furnished by a pricing
service, authorized by the Trustees, which determines
valuations taking into account appropriate factors such
as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type
of issue, trading characteristics and other market
data. Short-term securities with a remaining maturity
of sixty days or less are valued at either amortized
cost or at original cost plus accrued interest,
whichever approximates current market value. All other
securities and other assets, including debt securities
for which the prices supplied by a pricing agent are
deemed by MassMutual not to be representative of market
values, including restricted securities and securities
for which no market quotation is available, are valued
at fair value in accordance with procedures approved by
and determined in good faith by the Trustees, although
the actual calculation may be done by others.
Portfolio securities traded on more than one national
securities exchange are valued at the last price on the
business day as of which such value is being determined
at the close of the exchange representing the principal
market for such securities. All assets and liabilities
expressed in foreign currencies are converted into U.S.
dollars at the mean between the buying and selling
rates of such currencies against U.S. dollars last
quoted by any major bank. If such quotations are not
available, the rate of exchange is determined in
accordance with policies established by the Trustees.
92
<Page>
SECURITIES LENDING Each Fund may lend its securities to qualified brokers;
however, securities lending cannot exceed 33% of the
total assets of the Funds taken at current value. The
loans are collateralized at all times with cash or
securities with a market value at least equal to 100%
of the market value of the securities on loan. The
market value of the loaned securities is determined at
the close of business of the Fund and any additional
collateral is delivered to the Fund the next business
day. As with other extensions of credit, the Funds may
bear the risk of delay in recovery or even loss of
rights in the collateral should the borrower of the
securities fail financially. The Funds receive
compensation for lending their securities. At December
31, 2003, the Funds loaned securities having the
following market values, collateralized by cash, which
was invested in short-term instruments in the following
amounts:
<Table>
<Caption>
SECURITIES ON LOAN COLLATERAL
------------------ ------------
Large Cap Value Fund $ 2,731,502 $ 2,827,905
Equity Index Fund 23,859,580 24,774,298
Growth Equity Fund 1,304,924 1,362,960
Small Cap Equity Fund 2,729,085 2,849,200
Small Cap Growth
Equity Fund 9,868,688 10,299,494
</Table>
REPURCHASE Each Fund may enter into repurchase agreements with
AGREEMENTS certain banks and broker/dealers whereby a Fund
acquires a security for cash and obtains a simultaneous
commitment from the seller to repurchase the security
at an agreed upon price and date. The Funds, through
their custodian, take possession of the securities
collateralizing the repurchase agreement. The
collateral is marked to market daily to ensure that the
market value of the underlying assets remains
sufficient to protect the Funds in the event of default
by the seller. Collateral for repurchase agreements is
held at the counterparty's custodian in a segregated
account for the benefit of the Funds and the
counterparty. In connection with transactions in
repurchase agreements, if the seller defaults and the
value of the collateral declines or if the seller
enters insolvency proceedings, realization of
collateral by the Funds may be delayed or limited.
ACCOUNTING FOR Investment transactions are accounted for on the trade
INVESTMENTS date. Realized gains and losses on sales of investments
and unrealized appreciation and depreciation of
investments are computed on the specific identification
cost method. Interest income, adjusted for amortization
of discounts and premiums on debt securities, is earned
from the settlement date and is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend
date.
FEDERAL INCOME TAX It is each Fund's intent to continue to comply with the
provisions of subchapter M of the Internal Revenue Code
of 1986, as amended (the "Code"), applicable to a
regulated investment company. Under such provisions,
the Funds will not be subject to federal income taxes
on their ordinary income and net realized capital gains
to the extent they are distributed or deemed to have
been distributed to their shareholders. Therefore, no
Federal income tax provision is required.
DIVIDENDS AND Dividends from net investment income are declared and
DISTRIBUTIONS TO paid quarterly for the Inflation-Protected Bond Fund.
SHAREHOLDERS Dividends from net investment income are declared and
paid annually for the Large Cap Value Fund, Equity
Index Fund, Enhanced Index Core Equity Fund, Growth
Equity Fund, OTC 100 Fund, Small Cap Equity Fund, Small
Company Opportunities Fund, Small Cap Growth Equity
Fund and Emerging Growth Fund. Distributions of any net
realized capital gains of each Fund are declared and
paid annually and at other times as may be required to
satisfy tax or regulatory requirements. Distributions
to shareholders are recorded on the ex-dividend date.
Income and capital gain distributions are determined in
accordance with income tax regulations, which may
differ from generally accepted accounting principles.
These differences are primarily due to investments in
forward contracts, passive foreign investment
companies, the deferral of wash sale losses, and
paydowns on certain mortgage-backed securities. As a
result, net investment income and net realized gain on
investment transactions for a reporting period may
differ significantly from distributions during such
period.
Accordingly, the Funds may periodically make
reclassifications among certain of their capital
accounts without impacting the net asset value of the
Funds.
93
<Page>
During the year ended December 31, 2003, the following
amounts were reclassified due to differences between
book and tax accounting:
<Table>
<Caption>
ACCUMULATED
NET REALIZED UNDISTRIBUTED
PAID-IN GAIN (LOSS) ON NET INVESTMENT
CAPITAL INVESTMENTS INCOME (LOSS)
---------- -------------- --------------
Inflation-Protected Bond Fund $ - $ (780) $ 780
Large Cap Value Fund (51,507) 10,786 40,721
Equity Index Fund (1,987) 17,089 (15,102)
Enhanced Index Core Equity Fund (249) 709 (460)
Growth Equity Fund (401) (244) 645
OTC 100 Fund (22,969) (10) 22,979
Small Cap Equity Fund (6,164) 16,800 (10,636)
Small Company Opportunities Fund (1,631) (111,455) 113,086
Small Cap Growth Equity Fund (272,062) - 272,062
Emerging Growth Fund (70,430) (2) 70,432
</Table>
FOREIGN CURRENCY The books and records of the Funds are maintained in
TRANSLATION U.S. dollars. The market values of foreign currencies,
foreign securities and other assets and liabilities
denominated in foreign currencies are translated into
U.S. dollars at the mean of the buying and selling
rates of such currencies against the U.S. dollar at the
end of each business day. Purchases and sales of
foreign securities and income and expense items are
translated at the rates of exchange prevailing on the
respective dates of such transactions. The Funds do not
isolate that portion of the results of operations
arising from changes in the exchange rates from that
portion arising from changes in the market prices of
securities.
Net realized foreign currency gains and losses
resulting from changes in exchange rates include
foreign currency gains and losses between trade date
and settlement date on investment securities
transactions, foreign currency transactions and the
difference between the amounts of dividends recorded on
the books of the Funds and the amount actually
received.
FORWARD FOREIGN Each Fund may enter into forward foreign currency
CURRENCY contracts in order to hedge the effect of currency
CONTRACTS movements of foreign denominated securities or
obligations. A forward foreign currency contract is an
agreement between two parties to buy and sell a
currency at a set price on a future date. The market
value of a forward foreign currency contract fluctuates
with changes in foreign currency exchange and interest
rates. Forward foreign currency contracts are marked to
market daily and the change in their value is recorded
by the Funds as an unrealized gain or loss. When a
forward foreign currency contract is extinguished,
through delivery or offset by entering into another
forward foreign currency contract, the Funds record a
realized gain or loss equal to the difference between
the value of the contract at the time it was opened and
the value of the contract at the time it was
extinguished or offset.
Forward foreign currency contracts involve a risk of
loss from the potential inability of counterparties to
meet the terms of their contracts and from
unanticipated movements in foreign currency values and
interest rates.
The notional or contractual amounts of these
instruments represent the investments the Funds have in
particular classes of financial instruments and do not
necessarily represent the amounts potentially subject
to risk. The measurement of the risk associated with
these instruments is meaningful only when all related
and offsetting transactions are considered.
At December 31, 2003, the Funds had no open forward
foreign currency contracts.
94
<Page>
FORWARD Each Fund may purchase or sell securities on a "when
COMMITMENTS issued" or delayed delivery or on a forward commitment
basis. The Funds use forward commitments to manage
interest rate exposure or as a temporary substitute for
purchasing or selling particular debt securities.
Delivery and payment for securities purchased on a
forward commitment basis can take place a month or more
after the date of the transaction. The Funds instruct
the custodian to segregate assets in a separate account
with a current market value at least equal to the
amount of its forward purchase commitments. The price
of the underlying security and the date when the
securities will be delivered and paid for are fixed at
the time the transaction is negotiated. Forward
commitments are valued on the basis of valuations
furnished by a pricing service, authorized by the
Trustees, which determines valuations taking into
account appropriate factors such as institutional-size
trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading
characteristics and other market data. Securities for
which no market quotation is available, are valued at
fair value in accordance with procedures approved by
and determined in good faith by the Trustees, although
the actual calculation may be done by others. The Funds
record on a daily basis the unrealized appreciation
(depreciation) based upon changes in the value of the
forward commitment. When a forward commitment contract
is closed, the Funds record a realized gain or loss
equal to the difference between the value of the
contract at the time it was opened and the value of the
contract at the time it was extinguished. Forward
commitments involve a risk of loss if the value of the
security to be purchased declines prior to the
settlement date. The Funds could also be exposed to
loss if they cannot close out their forward commitments
because of an illiquid secondary market, or the
inability of counterparties to perform. The Funds
monitor exposure to ensure counterparties are
creditworthy and concentration of exposure is
minimized.
At December 31, 2003, the Funds had no open forward
commitments.
FINANCIAL FUTURES The Funds may purchase or sell financial futures
CONTRACTS contracts and options on such futures contracts for the
purpose of hedging the market risk on existing
securities or as a substitute for the purchase of
securities. Futures contracts are contracts for delayed
delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a
contract, the Funds deposit and maintain as collateral
such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the
contract, the Fund agrees to receive from or pay to the
broker an amount of cash equal to the daily fluctuation
in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Funds
as unrealized gains or losses. When the contract is
closed, each Fund 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.
A summary of open futures contracts for the Equity
Index Fund and the OTC 100 Fund at December 31, 2003,
is as follows:
<Table>
<Caption>
NOTIONAL
NUMBER OF CONTRACT NET UNREALIZED
CONTRACTS TYPE EXPIRATION DATE VALUE APPRECIATION
--------------------- ---------------- --------------- ------------ --------------
MML EQUITY INDEX FUND
BUYS
14 S&P 500 Index 03/18/04 $ 3,887,100 $ 89,391
MML OTC 100 FUND
BUYS
9 NASDAQ 100 Index 03/19/04 $ 264,780 $ 6,446
</Table>
ALLOCATION OF In maintaining the records for the Equity Index Fund,
OPERATING ACTIVITY the income and expense accounts are allocated to each
class of shares. Investment income, unrealized and
realized gains or losses are prorated among the classes
of shares based on the relative net assets of each.
Expenses are allocated to each class of shares
depending on the nature of the expenditures.
Administration fees, which are directly attributable
95
<Page>
to a class of shares, are charged to that class'
operations. Expenses of the Fund not directly
attributable to the operations of any class of shares
are prorated among the classes to which the expense
relates based on the relative net assets of each.
3. MANAGEMENT
FEES AND OTHER
TRANSACTIONS
INVESTMENT Under agreements between the Trust and MassMutual on
MANAGEMENT FEE behalf of each Fund, MassMutual is responsible for
providing investment management services for each Fund.
In return for this service, MassMutual receives
advisory fees monthly based on the following annual
rates.
For the Inflation-Protected Bond Fund, MassMutual
receives a fee from the Fund at an annual rate of 0.60%
of the first $100,000,000, 0.55% of the next
$200,000,000, 0.50% of the next $200,000,000 and 0.45%
on assets over $500,000,000, of the average daily net
asset value of the Fund.
For the Large Cap Value Fund, MassMutual receives a fee
from the Fund at an annual rate of 0.80% of the first
$100,000,000, 0.75% on the next $400,000,000 and 0.70%
on assets over $500,000,000, of the average daily net
asset value of the Fund.
For the Equity Index Fund, MassMutual receives a fee
from the Fund at an annual rate of 0.10% of the average
daily net asset value of the Fund.
For the Enhanced Index Core Equity Fund, MassMutual
receives a fee from the Fund at an annual rate of 0.55%
of the average daily net asset value of the Fund.
For the Growth Equity Fund, MassMutual receives a fee
from the Fund at an annual rate of 0.80% of the first
$300,000,000, 0.77% of the next $300,000,000, 0.75% of
the next $300,000,0000, 0.72% of the next $600,000,000
and 0.65% of assets over $1,500,000,000, of the average
daily net asset value of the Fund.
For the OTC 100 Fund, MassMutual receives a fee from
the Fund at an annual rate of 0.45% of the first
$200,000,000, 0.44% on the next $200,000,000 and 0.42%
on assets over $400,000,000, of the average daily net
asset value of the Fund.
For the Small Cap Equity Fund, MassMutual receives a
fee from the Fund at the annual rate of 0.65% of the
first $100,000,000, 0.60% of the next $100,000,000,
0.55% of the next $300,000,000 and 0.50% of any excess
over $500,000,000 of the average daily net asset value
of the Fund.
For the Small Company Opportunities Fund, MassMutual
receives a fee from the Fund at an annual rate of 1.05%
of the average daily net asset value of the Fund.
For the Small Cap Growth Equity Fund, MassMutual
receives a fee from the Fund at the annual rate of
1.075% of the first $200,000,000, 1.05% of the next
$200,000,000, 1.025% of the next $600,000,000 and 1.00%
of assets over $1,000,000,000, of the average daily net
asset value of the Fund.
For the Emerging Growth Fund, MassMutual receives a fee
from the Fund at the annual rate of 1.05% of the first
$200,000,000, 1.00% on the next $200,000,000 and 0.95%
on assets over $400,000,000, of the average daily net
asset value of the Fund.
MassMutual has entered into investment sub-advisory
agreements with David L. Babson & Company, Inc.
("DLB"), pursuant to which DLB serves as certain Funds'
sub-adviser providing day-to-day management of the
Funds' investments. DLB is a wholly owned subsidiary of
DLB Acquisition
96
<Page>
Corporation, which is a controlled subsidiary of
MassMutual. The sub-advisory agreements with DLB
provide that DLB manage the investment and reinvestment
of the assets of the Inflation-Protected Bond Fund,
Enhanced Index Core Equity Fund, Small Cap Equity Fund
and Small Company Opportunities Fund. DLB receives a
fee from MassMutual equal to an annual rate of 0.08% of
the average daily net assets under management of the
Inflation-Protected Bond Fund, 0.25% of the average
daily net assets under management of the Enhanced Index
Core Equity Fund and Small Cap Equity Fund, and 0.75%
of the average daily net assets under management of the
Small Company Opportunities Fund.
MassMutual has also entered into investment
sub-advisory agreements with the following unaffiliated
investment sub-advisers; Davis Selected Advisers, L.P.
for the Large Cap Value Fund, Northern Trust
Investments, Inc. for the Equity Index Fund and the OTC
100 Fund, Massachusetts Financial Services Company for
the Growth Equity Fund, Waddell & Reed Investment
Management Company for a portion of the Small Cap
Growth Equity Fund, RS Investment Management L.P. for
the Emerging Growth Fund and Wellington Management
Company, LLP for a portion of the Small Cap Growth
Equity Fund. Prior to January 31, 2003, Deutsche Asset
Management, Inc. managed the investment and
reinvestment of the assets of the Equity Index Fund and
the OTC 100 Fund. MassMutual pays a sub-advisory fee to
each of these sub-advisers based upon the aggregate net
assets under management which include (1) the average
daily net assets of the specified Fund which it
manages, and (2) the average daily net assets of all
other funds or accounts of MassMutual or its affiliates
for which the sub-adviser provides sub-advisory
services and which have substantially the same
investment objectives, policies and investment
strategies.
ADMINISTRATION & For the Equity Index Fund, under a separate
SHAREHOLDER SERVICE administrative and shareholder services agreement
FEES between the Fund and MassMutual, MassMutual provides
certain administrative and shareholder services and
bears some class specific administrative expenses. In
return for these services, MassMutual receives an
administrative services fee monthly based upon the
average daily net assets of the applicable class of
shares of the Fund at the following annual rates: 0.30%
on the first $100,000,000, 0.28% on the next
$150,000,000 and 0.26% on assets in excess of
$250,000,000 of Class I shares of the Fund, 0.19% of
the average daily net assets of Class II shares of the
Fund, and for Class III shares, an amount not to exceed
0.05% of the average daily net assets of the Fund.
EXPENSE WAIVERS For all Funds, except the Equity Index Fund, MassMutual
has agreed, at least through April 30, 2004, to bear
the expenses of the Fund to the extent that the
aggregate expenses (excluding the Fund's management
fee, interest, taxes, brokerage commissions and
extraordinary expenses) incurred during the Fund's
fiscal year exceed 0.11% of the average daily net
assets of the Fund for such year.
For Class II of the Equity Index Fund, MassMutual has
agreed, through April 30, 2004, to bear the expenses
(other than interest, taxes, brokerage commissions and
extraordinary expenses) to the extent that total
operating expenses, as a percentage of average daily
net assets, exceed 0.26%. For Class III, MassMutual has
agreed, at least through April 30, 2004, to bear the
expenses of the Fund, to the extent that the aggregate
expenses (excluding the Fund's management and
administrative fees, interest, taxes, brokerage
commissions and extraordinary expenses) incurred during
the Fund's fiscal year exceed 0.05% of the average
daily net assets of the Fund for such year. MassMutual
has also agreed to waive certain administrative and
shareholder service fees payable by the Fund on account
of Class III shares.
EXPENSE REDUCTIONS The Large Cap Value Fund, Growth Equity Fund, Small Cap
Equity Fund and the Small Cap Growth Equity Fund have
entered into agreements with certain brokers whereby
the brokers will rebate a portion of brokerage
commissions. Amounts earned by the Funds under such
agreements are presented as a reduction of expenses in
the statement of operations. For the year ended
December 31, 2003, expenses were reduced under these
agreements as follows:
<Table>
<Caption>
REDUCTIONS
----------
Large Cap Value Fund $ 2,499
Growth Equity Fund 8,366
Small Cap Equity Fund 294
Small Cap Growth Equity Fund 9,875
</Table>
97
<Page>
OTHER Certain officers and trustees of the Funds are also
officers of MassMutual. The compensation of each
trustee who is not an officer or employee of MassMutual
is borne by the Funds.
DEFERRED Trustees of the Funds that are not employees of
COMPENSATION MassMutual or its subsidiaries may elect to defer
receipt of their annual fees in accordance with terms
of the Non-Qualified Deferred Compensation Plan. Any
amounts deferred shall accrue interest at a rate equal
to eight percent (8%) per annum.
For the year ended December 31, 2003, no significant
amounts have been deferred.
4. PURCHASES AND Cost of purchases and proceeds from sales of investment
SALES OF securities (excluding short-term investments) for the
INVESTMENTS year ended December 31, 2003, were as follows:
<Table>
<Caption>
LONG-TERM U.S. OTHER LONG-TERM
GOVERNMENT SECURITIES SECURITIES
--------------------- ---------------
PURCHASES
Inflation-Protected Bond Fund $ 22,684,013 $ 5,491,875
Large Cap Value Fund - 11,061,378
Equity Index Fund - 40,283,941
Enhanced Index Core Equity Fund - 12,691,302
Growth Equity Fund - 49,352,355
OTC 100 Fund - 8,451,822
Small Cap Equity Fund - 28,414,618
Small Company Opportunities Fund - 22,375,790
Small Cap Growth Equity Fund - 20,839,204
Emerging Growth Fund - 15,067,854
SALES
Inflation-Protected Bond Fund $ 4,597,546 $ -
Large Cap Value Fund - 2,879,105
Equity Index Fund - 15,506,654
Enhanced Index Core Equity Fund - 9,300,197
Growth Equity Fund - 48,089,855
OTC 100 Fund - 3,528,073
Small Cap Equity Fund - 27,968,231
Small Company Opportunities Fund - 15,628,610
Small Cap Growth Equity Fund - 18,586,112
Emerging Growth Fund - 11,912,293
</Table>
98
<Page>
5. CAPITAL SHARE The Funds are authorized to issue an unlimited number
TRANSACTIONS of shares, with no par value in each class of shares.
Changes in shares outstanding for each Fund are as
follows:
<Table>
<Caption>
YEAR ENDED DECEMBER 31, 2003 YEAR ENDED DECEMBER 31, 2002
SHARES AMOUNT SHARES AMOUNT
-------------- -------------- -------------- --------------
INFLATION-PROTECTED BOND FUND~
Sold 2,692,560 $ 28,521,490 1,081,125 $ 10,823,509
Issued as reinvestment of dividends 46,497 495,892 8,594 87,058
Redeemed (487,070) (5,160,642) (35,276) (359,776)
-------------- -------------- -------------- --------------
Net increase (decrease) 2,251,987 $ 23,856,740 1,054,443 $ 10,550,791
============== ============== ============== ==============
LARGE CAP VALUE FUND
Sold 2,108,779 $ 16,987,215 2,862,676 $ 22,924,269
Issued as reinvestment of dividends 38,468 359,133 33,438 244,189
Redeemed (692,939) (5,520,063) (2,366,284) (18,060,835)
-------------- -------------- -------------- --------------
Net increase (decrease) 1,454,308 $ 11,826,285 529,830 $ 5,107,623
============== ============== ============== ==============
EQUITY INDEX FUND CLASS I
Sold 1,373,601 $ 16,523,967 961,983 $ 12,023,695
Issued as reinvestment of dividends 66,793 913,733 65,861 721,177
Redeemed (1,104,652) (12,742,287) (1,398,421) (16,555,264)
-------------- -------------- -------------- --------------
Net increase (decrease) 335,742 $ 4,695,413 (370,577) $ (3,810,392)
============== ============== ============== ==============
EQUITY INDEX FUND CLASS II
Sold 3,785,872 $ 45,312,735 7,799,054 $ 102,342,173
Issued as reinvestment of dividends 181,866 2,486,104 170,161 1,859,859
Redeemed (1,822,195) (20,970,465) (1,610,711) (19,430,127)
-------------- -------------- -------------- --------------
Net increase (decrease) 2,145,543 $ 26,828,374 6,358,504 $ 84,771,905
============== ============== ============== ==============
EQUITY INDEX FUND CLASS III
Sold 766,101 $ 8,254,570 294,010 $ 3,519,102
Issued as reinvestment of dividends 141,618 1,931,671 167,631 1,828,852
Redeemed (1,499,750) (17,541,572) (767,033) (8,917,816)
-------------- -------------- -------------- --------------
Net increase (decrease) (592,031) $ (7,355,331) (305,392) $ (3,569,862)
============== ============== ============== ==============
ENHANCED INDEX CORE EQUITY FUND
Sold 537,899 $ 4,237,161 309,634 $ 2,551,875
Issued as reinvestment of dividends 15,472 138,749 13,448 96,830
Redeemed (119,693) (908,167) (114,477) (928,076)
-------------- -------------- -------------- --------------
Net increase (decrease) 433,678 $ 3,467,743 208,605 $ 1,720,629
============== ============== ============== ==============
GROWTH EQUITY FUND
Sold 764,121 $ 4,707,919 772,223 $ 5,090,329
Issued as reinvestment of dividends 605 4,061 - -
Redeemed (601,626) (3,579,358) (3,647,482) (23,451,434)
-------------- -------------- -------------- --------------
Net increase (decrease) 163,100 $ 1,132,622 (2,875,259) $ (18,361,105)
============== ============== ============== ==============
OTC 100 FUND
Sold 3,381,484 $ 10,712,617 1,687,103 $ 5,010,758
Issued as reinvestment of dividends - - - -
Redeemed (1,738,007) (5,450,632) (2,717,441) (8,090,519)
-------------- -------------- -------------- --------------
Net increase (decrease) 1,643,477 $ 5,261,985 (1,030,338) $ (3,079,761)
============== ============== ============== ==============
SMALL CAP EQUITY FUND
Sold 1,543,870 $ 14,782,305 4,033,669 $ 38,752,010
Issued as reinvestment of dividends 12,718 142,999 18,417 157,182
Redeemed (1,081,987) (10,032,551) (2,722,806) (25,373,163)
-------------- -------------- -------------- --------------
Net increase (decrease) 474,601 $ 4,892,753 1,329,280 $ 13,536,029
============== ============== ============== ==============
SMALL COMPANY OPPORTUNITIES FUNDS
Sold 968,295 $ 11,536,096 1,373,472 $ 14,888,244
Issued as reinvestment of dividends 134,135 1,853,674 5,048 51,201
Redeemed (263,399) (2,914,092) (362,594) (3,675,222)
-------------- -------------- -------------- --------------
Net increase (decrease) 839,031 $ 10,475,678 1,015,926 $ 11,264,223
============== ============== ============== ==============
SMALL CAP GROWTH EQUITY FUND
Sold 1,211,042 $ 12,118,367 1,021,734 $ 9,440,406
Issued as reinvestment of dividends - - - -
Redeemed (533,737) (4,815,882) (2,232,444) (20,202,446)
-------------- -------------- -------------- --------------
Net increase (decrease) 677,305 $ 7,302,485 (1,210,710) $ (10,762,040)
============== ============== ============== ==============
</Table>
99
<Page>
<Table>
<Caption>
YEAR ENDED DECEMBER 31, 2003 YEAR ENDED DECEMBER 31, 2002
SHARES AMOUNT SHARES AMOUNT
-------------- -------------- -------------- --------------
EMERGING GROWTH FUND
Sold 1,672,583 $ 7,604,348 1,205,422 $ 5,376,027
Issued as reinvestment of dividends - - - -
Redeemed (947,231) (4,162,675) (1,962,462) (7,862,287)
-------------- -------------- -------------- --------------
Net increase (decrease) 725,352 $ 3,441,673 (757,040) $ (2,486,260)
============== ============== ============== ==============
</Table>
~ FOR THE PERIOD FROM AUGUST 30, 2002 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 2002.
6. FOREIGN The Funds may also invest in foreign securities,
SECURITIES subject to certain percentage restrictions. Investing
in securities of foreign companies and foreign
governments involves special risks and considerations
not typically associated with investing in securities
issued by U.S. companies and the U.S. Government. These
risks include revaluation of currencies and future
adverse political and economic developments. Moreover,
securities of many foreign companies and foreign
governments and their markets may be less liquid and
their prices more volatile than those of securities of
comparable U.S. companies and the U.S. Government.
7. FEDERAL INCOME At December 31, 2003, the cost of securities and the
TAX INFORMATION unrealized appreciation (depreciation) in the value of
investments owned by the Funds, as computed on a
Federal income tax basis, were as follows:
<Table>
<Caption>
FEDERAL TAX BASIS TAX BASIS NET UNREALIZED
INCOME TAX UNREALIZED UNREALIZED APPRECIATION/
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------- --------------- --------------- -----------------
Inflation-Protected Bond Fund $ 34,058,479 $ 942,032 $ (57,233) $ 884,799
Large Cap Value Fund 52,536,251 8,242,396 (1,151,093) 7,091,303
Equity Index Fund 440,965,571 38,996,301 (50,517,830) (11,521,529)
Enhanced Index Core Equity Fund 14,801,421 1,524,343 (245,862) 1,278,481
Growth Equity Fund 21,759,967 1,125,808 (223,542) 902,266
OTC 100 Fund 12,797,943 - (463,695) (463,695)
Small Cap Equity Fund 73,363,864 16,402,455 (1,554,401) 14,848,054
Small Company Opportunities Fund 35,541,18 68,031,250 (323,192) 7,708,058
Small Cap Growth Equity Fund 47,903,510 10,293,358 (977,341) 9,316,017
Emerging Growth Fund 9,574,843 1,032,619 (225,861) 806,758
</Table>
At December 31, 2003, the following Funds had
available, for Federal income tax purposes, unused
capital losses:
<Table>
<Caption>
EXPIRING EXPIRING EXPIRING EXPIRING
2008 2009 2010 2011
----------- ----------- ----------- -----------
Large Cap Value Fund $ 8,346 $ 1,160,333 $ 2,527,171 $ 1,015,832
Equity Index Fund - - 6,501,477 144,729
Enhanced Index Core Equity Fund - 285,538 1,053,561 375,501
Growth Equity Fund - 17,334,932 7,953,799 -
OTC 100 Fund - 943,131 4,762,508 2,362,711
Small Cap Equity Fund - - 123,022 -
Small Cap Growth Equity Fund - 10,101,072 8,158,841 930,646
Emerging Growth Fund 748,125 4,870,511 3,402,428 -
</Table>
100
<Page>
Net capital loss carryforwards may be applied against
any net realized taxable gains in each succeeding year,
or until their respective expiration dates, whichever
occurs first.
Certain differences exist from the amounts reflected in
the Statement of Changes in Net Assets primarily due to
the character of short-term capital gains treated as
ordinary income for tax purposes. The tax character of
distributions paid during the year ended December 31,
2003 was as follows:
<Table>
<Caption>
ORDINARY LONG TERM RETURN OF
INCOME CAPITAL GAIN CAPITAL
------------ ------------ ----------
Inflation-Protected Bond Fund $ 495,892 $ - $ -
Large Cap Value Fund 359,133 - -
Equity Index Fund 5,331,508 - -
Enhanced Index Core Equity Fund 138,749 - -
Growth Equity Fund 4,061 - -
Small Cap Equity Fund 142,999 - -
Small Company Opportunities Fund 599,939 1,253,735 -
</Table>
At December 31, 2003, the components of distributable
earnings on a tax basis were as follows:
<Table>
<Caption>
UNDISTRIBUTED
UNDISTRIBUTED LONG TERM UNREALIZED
ORDINARY CAPITAL GAIN/ APPRECIATION
INCOME (CAPITAL LOSS CARRYOVER) (DEPRECIATION)
------------- ------------------------ --------------
Inflation-Protected Bond Fund $ 216 $ 143,827 $ 886,387
Large Cap Value Fund - (5,346,575) 7,332,035
Equity Index Fund - (10,002,471) (8,169,473)
Enhanced Index Core Equity Fund - (2,159,764) 1,672,697
Growth Equity Fund - (25,528,503) 1,142,062
OTC 100 Fund - (11,010,292) 2,155,842
Small Cap Equity Fund - (803,221) 15,528,253
Small Company Opportunities Fund 462,933 395,424 7,769,923
Small Cap Growth Equity Fund - (19,553,160) 9,678,618
Emerging Growth Fund - (9,172,563) 958,257
</Table>
The following Funds elected to defer to January 1, 2004
post-October losses:
<Table>
<Caption>
AMOUNT
-----------
Large Cap Value Fund $ 367,883
Enhanced Index Core Equity Fund 50,912
OTC 100 Fund 322,405
</Table>
The following Funds elected to defer January 1, 2004
post-October currency losses:
<Table>
<Caption>
AMOUNT
-----------
Large Cap Value Fund $ 4,760
Growth Equity Fund 292
</Table>
Pursuant to Section 852 of the Internal Revenue Code,
the Small Company Opportunities Fund designates capital
gain dividends of $1,253,735 for the year ended
December 31, 2003.
101
<Page>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF MML SERIES INVESTMENT FUND
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of the MML Inflation-Protected Bond Fund, the MML
Large Cap Value Fund, the MML Equity Index Fund, the MML Enhanced Index Core
Equity Fund, the MML Growth Equity Fund, the MML OTC 100 Fund, the MML Small Cap
Equity Fund, the MML Small Company Opportunities Fund, the MML Small Cap Growth
Equity Fund and the MML Emerging Growth Fund (collectively the "Funds") which
are components of the MML Series Investment Fund ("The MML Trust"), as of
December 31, 2003, and the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended December 31,
2003 and 2002, and the financial highlights for the periods presented. These
financial statements and financial highlights are the responsibility of the MML
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 2003 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of December 31, 2003, and the results of their operations, the changes
in their net assets and their financial highlights for the respective stated
periods in conformity with accounting principles generally accepted in the
United States of America.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Boston, Massachusetts
February 11, 2004
102
<Page>
TRUSTEES AND OFFICERS (UNAUDITED)
The following table lists the Trust's trustees and
officers; their address and age; their position with
the Trust; the length of time holding that position
with the Trust; their principal occupation(s) during
the past five years; the number of portfolios in the
fund complex they oversee; and other directorships they
hold in companies subject to registration or reporting
requirements of the Securities Exchange Act of 1934
(generally called "public companies") or in registered
investment companies. The Trust's Statement of
Additional Information includes additional information
about the Trust's trustees and is available, without
charge, upon request by calling 1-888-309-3539 or by
writing MML Series Investment Fund, c/o Massachusetts
Mutual Life Insurance Company, 1295 State Street,
Springfield, Massachusetts 01111-0111, Attention:
Retirement Services Marketing.
DISINTERESTED
TRUSTEES
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE** PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME,ADDRESS*, HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
AND AGE TRUST SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ------------- ----------- ---------------------------- ------------- ------------------------
Ronald J. Abdow Trustee of Since President, Abdow 46 Trustee, Abdow G&R
Age: 71 the Trust 1993 Corporation (operator Trust and Abdow
of restaurants). G&R Co. (owners and
operators or restaurant
properties); Chairman,
Western Mass
Development Corp.;
Chairman, American
International College;
Trustee (since 2002),
Oppenheimer Tremont
Market Neutral Fund
LLC, Oppenheimer
Tremont Opportunity
Fund LLC and
Oppenheimer Real Estate
Fund.
Richard H. Ayers Trustee of Since Retired. 46 Director, Applera
Age: 60 the Trust 1999 Corporation; Director
(since 2002), Instron
Corporation.
Mary E. Boland Trustee of Since Attorney at Law, Egan, 46 Director (since 1999),
Age: 63 the Trust 1973 Flanagan and Cohen, P.C. BankNorth
(law firm), Springfield, MA. Massachusetts; Director
(since 1999),
Massachusetts
Educational Financing
Authority.
Richard W. Greene Trustee of Since Retired; Vice President for 46
Age: 67 the Trust 1999 Investments and Treasurer
(1998-2000),
University of
Rochester (private
university).
</Table>
103
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE** PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME,ADDRESS*, HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
AND AGE TRUST SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ------------- ----------- ---------------------------- ------------- ------------------------
Beverly L. Hamilton Trustee of Since President ARCO 46 Director (since 1991),
Age: 56 the Trust 1999 Investment Management Co. American Funds
(1991-2000). Emerging Markets
Growth Fund (open-interval
mutual fund);
Trustee (since 2000),
Monterey Institute for
International Studies;
Trustee (since 2001), The
California Endowment;
Trustee (since 2002),
Community Hospital of
the Monterey Peninsula;
Trustee (since 2002),
Board II Oppenheimer
Funds; Investment
Advisory Committees of
Rockefeller Foundation,
Unilever (Holland)
pension fund, CFSB
Sprout, University of
Michigan endowment and
Hartford Hospital.
F. William Marshall, Jr. Trustee of Since Consultant (since 1999); 46 Trustee (since 2000),
Age: 61 the Trust 1996 Chairman (1999), Family Board II Oppenheimer
Bank, F.S.B. (formerly SIS Funds.
Bank); Executive Vice
President (1999), Peoples
Heritage Financial Group;
President, Chief Executive
Officer and Director
(1993-1999), SIS Bancorp,
Inc. and SIS Bank (formerly,
Springfield Institution for
Savings).
Allan W. Blair Trustee of Since President and Chief 46 Director (since 2001),
Age: 55 the Trust 2003 Executive Officer (since Future Works, Inc.
1996), Economic
Development
Council of Western
Massachusetts;
President and
Chief Operating
Officer (since
1993), Westmass
Area Development
Corporation;
President and
Chief Operating
Officer (since
1984), Westover
Metropolitan
Development
Corporation.
R. Alan Hunter, Jr. Trustee of Since Retired. 46
Age: 56 the Trust 2003
</Table>
104
<Page>
INTERESTED
TRUSTEES
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE** PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME,ADDRESS*, HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
AND AGE TRUST SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ------------- ----------- ---------------------------- ------------- ------------------------
Stuart H. Reese Chairman Since Executive Vice President 46 Director (since 1994),
Age: 48 and Trustee 1999 and Chief Investment Merrill Lynch Derivative
of the Trust Officer (since 1999), Chief Products; Chairman
Executive Director (since 1999), Director
(1997-1999), MassMutual; (since 1996), Antares
Chairman and Chief Capital Corporation
Executive Officer (since (finance company);
2001), President and Chief Director (since 1996),
Executive Officer HYP Management, Inc.
(1999-2001), David L. (managing member of
Babson & Company Inc. MassMutual High Yield
(investment adviser); Partners LLC), and MMHC
Chairman (since 1999), Investment, Inc.
President (1995-1999), (investor in funds
MassMutual Corporate sponsored by
Investors and MassMutual MassMutual); Director
Participation Investors (since 1994), MassMutual
(closed-end investment Corporate Value Partners
companies). Limited (investor in
debt and equity
securities) and
MassMutual Corporate
Value Limited (parent of
MassMutual Corporate
Value Partners Limited);
President (since 1997),
MassMutual/ Darby CBO IM
Inc. (manager of
MassMutual/ Darby CBO
LLC, a high yield bond
fund); Advisory Board
Member (since 1995),
Kirtland Capital
Partners.
Frederick C. Castellani Trustee and Since Executive Vice President 46
Age: 56 President 2001 (since 2001),
of the Trust SeniorVice President
(1996-2001), MassMutual.
Robert E. Joyal Trustee of Since Retired; President 46 Director (since 1996),
Age: 58 the Trust 2003 (2001-2003), Director Antares Leverage Capital
(2000-2003) and Managing Corp.; Director (since
Director (2000-2001), David 1996), MassMutual High
L. Babson & Company Inc.; Yield Partners II, LLC;
Executive Director Director (since 1999),
(1997-1999), Massachusetts MassMutual Corporate
Mutual Life Insurance Value Partners Limited;
Company. President (since 1999),
MassMutual Corporate
Investors (closed-end
investment company);
President (since 1999),
MassMutual Participation
Investors (closed-end
investment company).
</Table>
105
<Page>
PRINCIPAL OFFICERS
WHO ARE NOT
TRUSTEES
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX
NAME,ADDRESS*, HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY
AND AGE TRUST SERVED PAST 5 YEARS OFFICER
----------------- ------------- ------- ------------------------------------------------ -------------
James S. Collins Chief Since Vice President (since 1999), Second Vice 46
Age: 45 Financial 2000 President (1990-1999), MassMutual.
Officer and
Treasurer
of Trust
Thomas M. Kinzler Vice Since Vice President and Associate General Counsel 46
Age: 47 President 1999 (since 1999), Second Vice President and
and Associate General Counsel (1996-1999),
Secretary MassMutual.
of the Trust
Vernon J. Meyer Vice Since Vice President (since 1998), MassMutual. 46
Age: 38 President 1999
of the Trust
David W. O'Leary Vice Since Senior Vice President (since 2001), MassMutual; 14
Age: 42 President 2001 Senior Vice President (1999-2001), Vice
of the Trust President(1996-1999), Aetna Financial Services.
Toby Slodden Vice Since Executive Vice President (since 2003), Senior 46
Age: 46 President 2003 Vice President (1999-2003), Vice President
of the Trust (1997-1999), MassMutual.
</Table>
* The address of each Trustee and Principal Officer is
the same as that for the Trust; 1295 State Street,
Springfield, Massachusetts 01111.
** Each Trustee of the Trust serves until the next
meeting of shareholders called for the purpose of
electing Trustees and until the election and
qualification of his successor or until he dies,
resigns or is removed. Notwithstanding the
foregoing, a Trustee shall retire and cease to serve
as a Trustee as of the first board meeting following
the date on which the Trustee attains the age of
seventy-two years. Except, any Trustee who attained
the age of seventy-two years during 2001 shall
retire and cease to serve as a Trustee on or before
June 1, 2003.
FEDERAL TAX INFORMATION (UNAUDITED)
For corporate shareholders, a portion of the ordinary dividends paid during the
Fund's year ended December 31, 2003 qualified for the dividends received
deduction, as follows:
<Table>
Large Cap Value Fund 100.00%
Equity Index Fund 100.00%
Enhanced Index Core Equity Fund 100.00%
Growth Equity Fund 100.00%
Small Cap Equity Fund 100.00%
Small Company Opportunities Fund 20.33%
</Table>
106
<Page>
[This page is intentionally left blank.]
<Page>
[MASSMUTUAL FINANCIAL GROUP (SM) LOGO]
Massachusetts Mutual Life Insurance Company
and its affiliates, Springfield, MA 01111-0001
www.massmutual.com
MassMutual Financial Group is a marketing designation (or fleet name) for
Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates.
L4540A 204
<Page>
ITEM 2 CODE OF ETHICS.
As of December 31, 2003, the Registrant adopted a Code of Ethics that
applies to the Principal Executive Officer and Principal Financial Officer
pursuant to the Sarbanes-Oxley Act of 2002. For the year ended December 31,
2003, there were no amendments to a provision of the Code of Ethics. A copy of
its Code of Ethics is filed with this Form N-CSR under item 10 (a).
ITEM 3 AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board of Trustees has determined that Richard H. Ayers
and Richard W. Greene, both members of the Audit Committee, are audit committee
financial experts as defined by the Securities and Exchange Commission (the
"SEC"). Mr. Ayers and Mr. Greene are "independent" as defined by the SEC for
purposes of audit committee financial expert determinations.
ITEM 4 PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES: The aggregate fees paid and accrued by the Registrant
for professional services rendered by its independent auditors,
Deloitte & Touche LLP, for the audit of the Registrant's annual
financial statements for 2003 and 2002 were $191,840 and $166,580,
respectively.
(b) AUDIT RELATED FEES: No such fees were billed to the Registrant by
Deloitte & Touche LLP for 2003 or 2002.
(c) TAX FEES: The aggregate fees paid or accrued by the Registrant for
professional services rendered by Deloitte & Touche LLP for the
review of Form 1120-RIC, Form 8613, excise distribution
projections, distribution calculation and reasonable out of pocket
expenses for 2003 and 2002 were $63,950 and $31,143, respectively.
(d) ALL OTHER FEES: No such fees were billed to the Registrant by
Deloitte & Touche LLP for 2003 or 2002.
(e) (1) AUDIT COMMITTEE PRE-APPROVAL POLICY: All services to be
performed for the Registrant by Deloitte & Touche LLP must be
pre-approved by the audit committee. All services performed during
2003 and 2002 were pre-approved by the committee.
(2) Not applicable.
(f) Not applicable.
(g) Not applicable.
(h) Not applicable.
ITEM 5 AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6 [RESERVED]
ITEM 7 DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8 [RESERVED]
<Page>
ITEM 9 CONTROLS AND PROCEDURES.
(a) The Registrant's Principal Executive Officer and Principal Financial
Officer concluded that the Registrant's disclosure controls and
procedures are effective based on their evaluation of the Registrant's
disclosure controls and procedures as of a date within 90 days prior to
the filing date of this report (the "Evaluation Date").
(b) There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal
half-year (the Registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 10 (EXHIBITS):
(a)(1) Code of Ethics Described in Item 2 is attached.
(a)(2) Certifications of the Principal Executive Officer and Principal
Financial Officer of the Registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940 (17 CFR 270.30a-2(a) are attached
hereto as Exhibit 99CERT.302
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are attached hereto as Exhibit 99CERT.906.
<Page>
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.
(Registrant) MML Series Investment Fund
By (Signature and Title): /s/ Frederick C. Castellani
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Frederick C. Castellani, President and Principal
Executive Officer
Date February 11, 2004
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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 (Signature and Title): /s/ Frederick C. Castellani
----------------------------------------
Frederick C. Castellani, President and Principal
Executive Officer
Date February 11, 2004
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By (Signature and Title): /s/ James S. Collins
----------------------------------------
James S. Collins, Treasurer and Principal
Financial Officer
Date February 11, 2004
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