| BRIGHTHOUSE FUNDS TRUST I |
SUMMARY PROSPECTUS |
April 28,
2025 |
PIMCO Total Return
Portfolio
Class A, Class B and Class E
Shares
| Before you invest, you may want to review the Portfolio’s Prospectus, which contains more information about the Portfolio and its
risks. You can find the Portfolio’s Prospectus, reports to
shareholders, and other information about the Portfolio (including the documents listed below) online at https://dfinview.com/BHFT. You can also get this information at no cost by calling
1-800-882-1292 or by sending an e-mail request to RCG@brighthousefinancial.com. The Portfolio’s Prospectus and Statement of
Additional Information, both dated April 28, 2025, as supplemented from time
to time, and the Portfolio’s financial statements for the
year ended December 31, 2024, including the notes to the financial statements, the financial highlights and the report of the Portfolio’s independent registered public accounting firm, all of which are included in Form N-CSR of the Portfolio, dated
December 31, 2024, are all incorporated by reference into this Summary
Prospectus. This Summary Prospectus is intended for individuals
who have purchased Contracts (as defined below) from insurance companies, including insurance companies affiliated with Brighthouse Investment Advisers, LLC, and is not intended for use by other investors. |
Investment Objective
Maximum total return, consistent with the preservation of capital and prudent investment management.
Fees and Expenses of the Portfolio
The following table describes the fees and expenses that you may pay if you buy and hold shares of the
Portfolio. The table and the Example below do not reflect the fees, expenses or withdrawal
charges imposed by your variable life insurance policy or variable annuity contract (the
“Contract”). If Contract expenses were reflected, the fees and expenses in the table and Example would be higher. See the Contract prospectus for a description of those fees, expenses and charges.
| Shareholder Fees
(fees paid directly from your investment)— |
None |
| Annual Portfolio Operating
Expenses (expenses that you pay each year as a percentage of the value of your investment) | |||
| |
Class A |
Class B |
Class E |
| Management Fee |
0.48% |
0.48% |
0.48% |
| Distribution and/or Service (12b-1) Fees |
None |
0.25% |
0.15% |
| Other Expenses |
0.13% |
0.13% |
0.13% |
| Interest Expenses |
0.10 % |
0.10 % |
0.10 % |
| All Other Expenses |
0.03 % |
0.03 % |
0.03 % |
| Total Annual Portfolio Operating Expenses |
0.61% |
0.86% |
0.76% |
| Fee Waiver1
|
(0.02% ) |
(0.02% ) |
(0.02% ) |
| Net Operating Expenses |
0.59% |
0.84% |
0.74% |
1
Brighthouse Investment Advisers, LLC has contractually agreed, for the period May 1, 2025 through April 30, 2026, to reduce the Management Fee for each class of the Portfolio.
This arrangement may be modified or discontinued prior to April 30, 2026, only with the approval of the Board of Trustees of the Portfolio.
Example
The following Example is intended to help you compare the cost of investing in the Portfolio with the
cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the
Portfolio for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year, that the Portfolio’s operating expenses
remain the same, and that all fee waivers for the Portfolio will expire after one year. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
| |
1 Year |
3 Years |
5 Years |
10 Years |
| Class A |
$60 |
$193 |
$338 |
$760 |
| Class B |
$86 |
$272 |
$475 |
$1,059 |
| Class E |
$76
|
$241
|
$420
|
$940
|
Portfolio
Turnover
The Portfolio pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in
annual portfolio operating expenses or in the Example, affect the Portfolio’s performance.
During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 603% of the average value of its portfolio.
During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 603% of the average value of its portfolio.
Principal Investment Strategies
Pacific Investment Management Company LLC (“PIMCO” or “Subadviser”), subadviser to the Portfolio, invests, under normal circumstances, at least
65% of the Portfolio’s total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or
swap agreements. The average portfolio duration of the Portfolio normally varies within two
years (plus or minus) of the duration of the Bloomberg U.S. Aggregate Bond Index, as calculated by PIMCO.
PIMCO believes that no
single risk should dominate returns and, as a result, emphasizes diversification of risks through the use of a wide range of strategies when constructing the investment portfolio. PIMCO seeks to add value
through the use of “top-down” strategies such as exposure to interest rates,
duration, changing volatility, yield curve positioning and sector rotation. In addition,
PIMCO employs “bottom-up” strategies involving analysis and selection of specific securities. By combining top-down and bottom-up strategies, PIMCO seeks to add value over time while incurring, in
PIMCO’s estimation, acceptable levels of portfolio risk.
Principal investments include securities issued or guaranteed by the
U.S. Government, its agencies or government-sponsored enterprises; corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper; mortgage-backed and other
asset-backed securities, including collateralized loan obligations; inflation-indexed bonds
issued both by governments and corporations; structured notes, including hybrid or “indexed” securities and event-linked bonds; bank capital and trust preferred securities; loan participations and
assignments; delayed funding loans and revolving credit facilities; bank certificates of
deposit, fixed time deposits and bankers’ acceptances; repurchase agreements and
reverse repurchase agreements; securities issued pursuant to Rule 144A under the Securities Act of 1933; debt securities issued by states or local governments and their agencies, authorities and other
government-sponsored enterprises; obligations of non-U.S. governments or their
subdivisions, agencies and government-sponsored enterprises; and obligations of
international agencies or supranational entities.
The Portfolio invests primarily in investment grade debt securities, but may invest up to 15% of its
total assets in high yield securities (commonly called “junk bonds”) rated B or
higher by Moody’s Investors Service, Inc. or equivalently rated by Standard &
Poor’s Ratings Services or Fitch, Inc., or if unrated, determined by PIMCO to be of comparable quality (except that within such 15% limitation, the Portfolio may invest in mortgage-related securities rated below B). The
Portfolio also may invest up to 30% of its total assets in securities denominated in
foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The Portfolio may invest up to 15% of its total assets in securities and instruments that are economically tied to
emerging market countries. Foreign currency exposure (from non-U.S. dollar-denominated
securities or currencies) normally will be limited to 20% of the Portfolio’s total assets. The Portfolio may invest up to 10% of its total assets in preferred stock, convertible securities and other equity related
securities.
The Portfolio may invest all of its assets in
derivative instruments, such as options, futures contracts or swap agreements (including
credit default swap contracts), or in mortgage- or asset-backed securities. The Portfolio may purchase or sell securities on a when-issued, delayed delivery or forward
commitment basis and may engage in short sales to a significant extent. The Portfolio may, without limitation, seek to obtain market exposure to the securities in which
it primarily invests by entering into a series of purchase and sale contracts or by using
other investment techniques (such as buy backs or dollar rolls). The “total
return” sought by the Portfolio consists of income earned on the Portfolio’s investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a
particular sector or security.
Principal
Risks
As with all mutual funds, there is no guarantee that
the Portfolio will achieve its investment objective. You could lose money by investing in the Portfolio. An investment in the Portfolio through a Contract is not a deposit or obligation of, or guaranteed by, any bank, and is not federally
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency of the U.S. Government.
The value of your
investment in the Portfolio may be affected by one or more of the following risks, which are described in more detail in “Principal Risks of Investing in the Portfolio” in the Prospectus. The
significance of any specific risk to an investment in the Portfolio will vary over time, depending on the composition of the Portfolio, market conditions, and other factors. You should read all of the risk
information presented below carefully, because any one or more of these risks could cause
the Portfolio’s return, the price of the Portfolio’s shares or the Portfolio’s yield to fluctuate.
Market Risk. The Portfolio’s share price can fall because of,
among other things, a decline in the market as a whole, deterioration in the prospects for
a particular industry or company, changes in general economic conditions, such as
prevailing interest rates or investor sentiment, or other factors including terrorism, war,
natural disasters and the spread of infectious illness including epidemics or pandemics. In addition, unexpected political, regulatory, trade and diplomatic events within the United States and abroad may
affect investor and consumer confidence and may adversely impact financial markets and the
broader economy, perhaps suddenly and to a significant degree. Significant disruptions to the financial markets could adversely affect the liquidity and volatility of securities held by the
Portfolio.
Foreign Investment Risk. Investments in foreign securities, whether direct or indirect, tend to be more volatile and less liquid than investments in U.S. securities
because, among other things, they involve risks relating to political, social, economic and
other developments abroad, as well as risks resulting from differences between the regulations and reporting standards and practices to which U.S. and foreign issuers are subject. To the extent foreign securities are
denominated in foreign currencies, their values may be adversely affected by changes in currency exchange rates. All of the risks of investing in foreign securities are typically increased by investing
in emerging market countries.
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To the extent the
Portfolio invests in foreign sovereign debt securities, it is subject to additional risks.
Credit and Counterparty Risk. The value of the Portfolio’s investments may be adversely affected if a security’s credit rating is downgraded or an issuer of
an investment held by the Portfolio fails to pay an obligation on a timely basis, otherwise defaults or is perceived by other investors to be less creditworthy. If a counterparty to a derivatives or other
transaction with the Portfolio files for bankruptcy, becomes insolvent, or otherwise
becomes unable or unwilling to honor its obligation to the Portfolio, the Portfolio may
experience significant losses or delays in realizing income on or recovering collateral and may lose all or a part of the income from the transaction.
Interest Rate Risk. The value of the Portfolio’s investments in fixed income securities may decline when prevailing interest rates rise or increase when interest
rates fall. The longer a security’s maturity or duration, the greater its value will change in response to changes in interest rates. The interest earned on the Portfolio’s investments in
fixed income securities may decline when prevailing interest rates fall. During periods of very low or negative interest rates, the Portfolio may be unable to maintain positive returns or pay dividends to
Portfolio shareholders. Very low or negative interest rates may magnify interest rate risk.
Changing interest rates, including rates that fall below zero, may have unpredictable
effects on markets, result in heightened market volatility and detract from the Portfolio’s performance to the extent the Portfolio is exposed to such interest rates. Additionally, under certain market
conditions in which interest rates are low or negative, the Portfolio may have a very low, or
even negative yield. A low or negative yield would cause the Portfolio to lose money and
the net asset value of the Portfolio’s shares to decline in certain conditions and over certain time periods. Changes in prevailing interest rates, particularly sudden changes, may also increase the level
of volatility in fixed income and other markets, increase redemptions in the Portfolio’s shares and reduce the liquidity of the Portfolio’s debt securities and other income-producing holdings.
Changes in interest rate levels are caused by a variety of factors, such as central bank monetary policies, inflation rates, and general economic and market conditions.
TIPS and Inflation-Linked Bonds Risk. The value of inflation-protected securities generally fluctuates in response to changes in real interest rates, which
are in turn tied to the relationship between nominal interest rates and the rate of
inflation. Therefore, if inflation were to rise at a faster rate than nominal interest
rates, real interest rates would decline, leading to an increase in the value of inflation-protected securities. In contrast, if nominal interest rates increased at a faster rate than inflation, real interest rates would
rise, leading to a decrease in the value of inflation-protected securities. When real interest rates are rising faster than nominal interest rates, inflation-indexed bonds, including Treasury
Inflation Protected Securities, may experience greater losses than other fixed income
securities with similar durations. The inflation-protected
securities markets are
generally much smaller and less liquid than the markets for nominal bonds from the same issuers and as such can suffer losses during times of economic stress or illiquidity.
Mortgage-Backed and Asset-Backed Securities
Risk. The value of investments in mortgage-backed and asset-backed securities is subject to interest rate risk and
credit and counterparty risk. These securities are also subject to the risk that issuers
will prepay the principal more quickly or more slowly than expected, which could cause the Portfolio to invest the proceeds in less attractive investments or increase the volatility of their prices. To the extent
mortgage-backed and asset-backed securities held by the Portfolio are backed by lower rated
securities, such as sub-prime obligations, or are subordinated to other interests in the
same mortgage or asset pool, the likelihood of the Portfolio receiving payments of principal or interest may be substantially limited.
Leveraging Risk. Derivatives and other transactions that give rise to leverage may cause the Portfolio’s
performance to be more volatile than if the Portfolio had not been leveraged. Leveraging
also may require that the Portfolio liquidate portfolio securities when it is not
advantageous to do so to satisfy its obligations. Leveraging may expose the Portfolio to losses in excess of the amounts invested or borrowed. Leverage can create an interest expense that would lower the
Portfolio’s overall returns. There can be no guarantee that a leveraging strategy will be successful.
Short Sale and Short Position Risk. The Portfolio will incur a loss from a short sale or short position if the value of the security sold short or the reference
instrument, in the case of a short position, increases after the time the Portfolio entered into the short sale or short position. In addition, when the Portfolio engages in short sales, a lender may
request, or market conditions may dictate, that securities sold short be returned to the lender on short notice, and the Portfolio may have to buy the securities sold short at an unfavorable price.
Engaging in a short sale or short position may cause the Portfolio to lose more money than
the actual cost of the short sale or short position and the Portfolio’s potential
losses may be unlimited if the Portfolio does not own the security sold short or the reference instrument and it is unable to close out of the short sale or short position. Any gain from a short sale or short position
will be offset in whole or in part by the transaction costs associated with the short sale or
short position. Short sales and short positions generally involve a form of leverage, which
can exaggerate a Portfolio’s losses.
Forward Commitment, When-Issued and Delayed Delivery Securities Risk. Investments in forward commitments and when-issued and delayed delivery securities are subject to the
risk that the value or yield of the securities the Portfolio is obligated to purchase will
decline below the agreed upon purchase price or expected yield before the securities are actually issued or delivered. These investments may create a form of investment leverage, which may increase the
Portfolio’s volatility and may require the Portfolio to liquidate portfolio securities when it is not advantageous to do so.
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Mortgage Dollar Roll Transactions Risk. Mortgage dollar roll transactions are subject to the risk that the value of the securities the Portfolio is obligated to
purchase will decline below the agreed upon purchase price. In addition, the Portfolio will
incur higher transaction costs if its mortgage dollar roll transactions lead to higher
portfolio turnover. These transactions also may subject the Portfolio to a form of investment leverage, which may increase the Portfolio’s volatility and may require the Portfolio to liquidate portfolio
securities when it is not advantageous to do so.
Portfolio Turnover Risk. The investment techniques and strategies utilized by the Portfolio might result in a high degree
of portfolio turnover. High portfolio turnover rates will increase the Portfolio’s
transaction costs, which can adversely affect the Portfolio’s performance.
High Yield Debt Security Risk. High yield debt securities, or “junk” bonds, may be more susceptible to market risk and credit and counterparty risk than
investment grade debt securities because issuers of high yield debt securities are less secure financially and their securities are more sensitive to downturns in the economy. In addition, the
secondary market for high yield debt securities may not be as liquid as that for higher rated debt securities. High-yield debt securities range from those for which the prospect for repayment of
principal and interest is predominantly speculative to those which are currently in default
on principal or interest payments or whose issuers are in bankruptcy.
Convertible Securities Risk. Investments in convertible securities are subject to market risk, credit and counterparty risk, interest rate risk and other risks
associated with investments in equity and fixed income securities, depending on the price of the underlying security and the conversion price. In addition, a convertible security may be bought back by
the issuer, or the Portfolio may be forced to convert a convertible security, at a time and
a price that is disadvantageous to the Portfolio.
Reverse Repurchase Agreement Risk. Reverse repurchase agreements are subject to market risk, credit and counterparty risk and leveraging risk. Reverse repurchase agreements involve the risk that the market value of the
securities sold will decline below the price at which the Portfolio is required to repurchase
them. In addition, reverse repurchase agreements involve the risk that the other party will
fail to return the securities in a timely manner or at all. The Portfolio could lose money if it is unable to recover the securities and the value of the collateral held by the Portfolio, including the value of the
investments made with cash collateral, is less than the value of the securities. Reverse
repurchase agreements may create investment leverage, which may increase the
Portfolio’s volatility and may require the Portfolio to liquidate portfolio securities when it is not advantageous to do so.
Credit Default Swap Risk. Credit default swaps may increase credit and counterparty risk (depending on whether the Portfolio is the buyer or seller of the swaps),
and they may be illiquid. Credit default swaps also may be difficult to value, especially in
the event of market disruptions. Credit default swap transactions in which the Portfolio is
the seller may require that the Portfolio sell portfolio securities when it is not advantageous to do so in order to satisfy its obligations.
Interest Rate Swap Risk. The risk of interest rate swaps includes changes in market conditions that may affect the value of the contract or the cash flows, and the possible inability or unwillingness of the counterparty to
fulfill its obligations under the agreement. Certain interest rate swap arrangements also
involve the risk that they do not fully offset adverse changes in interest rates. Interest
rate swaps may be illiquid and may be difficult to trade or value, especially in the event of market disruptions. Under certain market conditions, the investment performance of the Portfolio may be less
favorable than it would have been if the Portfolio had not used the swap agreement.
Forward and Futures Contract Risk. The successful use of forward and futures contracts will depend upon the Subadviser’s skill and experience with respect
to such instruments and are subject to special risk considerations. The primary risks
associated with the use of forward and futures contracts include (i) the imperfect
correlation between the change in market value of the instruments held by the Portfolio and the price of the forward or futures contract; (ii) possible lack of a liquid market for a forward or futures contract and
the resulting inability to close a forward or futures contract when desired; (iii) losses
caused by unanticipated market movements, which are potentially unlimited; (iv) the
Subadviser’s inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors; (v) the possibility that the counterparty will default in the
performance of its obligations; (vi) if the Portfolio has insufficient cash, it may have to
sell securities to meet daily variation margin requirements, and the Portfolio may have to sell securities at a time when it is disadvantageous to do so; (vii) the possibility that the Portfolio may be delayed or prevented from
recovering margin or other amounts deposited with a futures commission merchant or
clearinghouse; (viii) the possibility that position or trading limits will preclude the
Subadviser from taking positions in certain futures contracts on behalf of the Portfolio; and (ix) the risks typically associated with foreign investments to the extent the Portfolio invests in derivatives traded
on markets outside the United States.
Derivatives Risk. The Portfolio may invest in derivatives to obtain investment exposure, enhance return or
“hedge” or protect its assets from an unfavorable shift in the value or rate of
a reference instrument or asset. Derivatives can be highly volatile and can significantly
increase the Portfolio’s exposure to market risk, credit and counterparty risk and other risks. Derivatives may be illiquid and difficult to value and can involve risks in addition to, and potentially greater
than, the risks of the
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underlying reference
instrument. Because of their complex nature, some derivatives may not perform as intended. As a result, the Portfolio may not realize the anticipated benefits from a derivative it holds or it may
realize losses. Certain derivatives have the potential for unlimited loss, regardless of the size of the initial investment. Derivative transactions may create investment leverage, which increases the
Portfolio’s volatility and may require the Portfolio to liquidate portfolio securities when it is not advantageous to do so. Government regulation of derivative instruments may limit or prevent the
Portfolio from using such instruments as part of its investment strategies, which could
adversely affect the Portfolio.
Rule 144A and Other Exempted Securities Risk. In the U.S. market, private placements may typically be sold only to qualified institutional buyers, or qualified purchasers, as applicable. If an insufficient number of
eligible buyers is interested in purchasing privately placed and other securities or
instruments exempt from Securities and Exchange Commission registration (collectively
“private placements”) at a particular time, this could adversely affect the marketability of such investments and the Portfolio might be unable to dispose of them promptly or at reasonable prices,
subjecting the Portfolio to liquidity risk. Even the Portfolio’s holdings of liquid private placements may increase the level of Portfolio illiquidity if eligible buyers are unable or unwilling to
purchase them at a particular time. The information that issuers of Rule 144A eligible
securities are required to disclose to potential investors is much less extensive than that required of public companies and is not publicly available, and issuers of Rule 144A eligible securities can require recipients of the
offering information (such as the Portfolio) to agree contractually to keep the information
confidential, which could also adversely affect the Portfolio’s ability to dispose of
the security.
Collateralized Obligations
Risk. Collateralized obligations are subject to varying degrees of credit and counterparty risk. The Portfolio’s credit and
counterparty risk increases if its interests are subordinate to other holders’ interests.
Past Performance
The information below provides some indication of the risks of investing in the Portfolio by showing changes in the Portfolio’s performance from year to year and
how the Portfolio’s average annual returns over time compare with those of a broad-based securities market index. Note that the results in the bar chart and table do not include the effect of Contract charges. If these Contract charges had been included,
performance would have been lower. As with all mutual funds, past returns are not a prediction of future returns.
Year-by-Year Total
Return for Class A Shares as of
December 31 of Each Year
December 31 of Each Year
| Highest Quarter |
Q4 2023 |
7.01% |
| Lowest Quarter |
Q1 2022 |
-6.19% |
Average Annual Total Return as of December 31,
2024
| |
1 Year |
5 Years |
10 Years |
| Class A |
2.73% |
0.11% |
1.68% |
| Class B |
2.43% |
-0.14% |
1.43% |
| Class E |
2.59% |
-0.03% |
1.54% |
| Bloomberg U.S. Aggregate Bond Index
(reflects no deduction for mutual fund fees
or expenses) |
1.25% |
-0.33% |
1.35% |
Management
Adviser. Brighthouse Investment Advisers, LLC (“BIA”), is
the Portfolio’s investment adviser.
Subadviser. Pacific Investment Management Company LLC is the subadviser to the Portfolio.
Portfolio Managers. Mark R. Kiesel, Managing Director and CIO Global Credit has managed the Portfolio since 2014. Mohit Mittal, Managing Director, has managed the Portfolio since 2019. Michael Cudzil, Managing Director, has managed the Portfolio since 2022.
Purchase and Sale of Portfolio Shares
Shares of the Portfolio are only sold to separate accounts of insurance companies, including insurance
companies affiliated with BIA, to fund Contracts. For information regarding the purchase
and sale of the Portfolio’s shares, please see the prospectus for the relevant Contract.
Tax Information
For information regarding the tax consequences of Contract ownership, please see the prospectus for the relevant Contract.
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Payments to Broker-Dealers and Other Financial
Intermediaries
Intermediaries
The Portfolio is not sold directly to the general public but instead is offered as an underlying investment option for Contracts issued by insurance companies,
including insurance companies that are affiliated with the Portfolio and BIA. The Portfolio
and its related companies, including BIA, may make payments to the sponsoring insurance companies (or their affiliates) for distribution and/or other services, and the
insurance companies may benefit more from offering the Portfolio as an investment option in the Contracts than offering other portfolios. The benefits to the
insurance companies of offering the Portfolio over other portfolios and these payments may
be factors that the insurance companies consider in including the Portfolio as an underlying investment option in the Contracts and may create a conflict of interest. The prospectus for your Contract contains additional
information about these payments.
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